Short answer

If your property was sold at a Florida tax deed sale, you may be entitled to claim surplus funds held by the clerk of court. The surplus is the amount the property sold for above the unpaid taxes and the costs of the sale. For homestead property, the opening bid also includes one-half of the assessed value, and that amount is part of the surplus too.

Why it matters

Losing a property to a tax deed sale is stressful, but you may still have a right to receive money left over after the sale. Understanding how to claim the surplus can help you recover funds that might otherwise go unclaimed. For many former owners, this money can provide important financial relief or a fresh start after a difficult experience. Missing deadlines or misunderstanding the process can mean losing access to these funds.

Steps

Follow these steps to claim surplus funds after a Florida tax deed sale:

Understand the process A tax deed sale happens when property taxes go unpaid. The holder of a tax certificate applies for a tax deed, and the clerk of the circuit court sells the property at a public auction. This is a different process from a mortgage foreclosure. The surplus is the amount the property sold for above the unpaid taxes and the costs of the sale. For homestead property, the opening bid also includes one-half of the assessed value, and that amount is part of the surplus too. The surplus is held by the clerk of court.

Watch for the notice After the sale, the clerk of court will mail a notice of surplus funds to the former owner and any lienholders.

File a sworn written claim To receive the surplus, you must file a sworn written claim with the clerk of court within 120 days of the date of the notice. The claim must include your contact information and details about your right to the surplus. If you are the former owner, you may file this claim directly with the clerk. You do not need a lawyer to do so, but you may choose to seek legal advice if you have questions or if there are competing claims.

Understand the order of payment The clerk will pay governmental liens first (such as code enforcement or municipal liens). Next, other lienholders are paid, with senior liens paid before junior liens. After all liens are satisfied, the remaining surplus goes to the former owner (the titleholder of record).

What happens if there are conflicting claims? If more than one person or entity claims the surplus, the clerk may ask the circuit court to decide who is entitled to the funds. This is called an interpleader case.

If no claim is filed within 120 days If no claim is filed within 120 days, the titleholder of record is presumed entitled to the surplus, and the funds are handled under Florida’s unclaimed property law. The firm also represents former owners, and the beneficiaries of owners who have died, in claims for surplus that has been sent to the Florida Department of Financial Services.

Example

Illustrative Example:

Suppose your homestead property is sold at a tax deed auction for $150,000. The unpaid property taxes and costs of the sale total $20,000. The assessed value of the homestead is $100,000, so the opening bid included $50,000 (one-half of the assessed value). The surplus is calculated as follows:

  • Sale price: $150,000
  • Minus unpaid taxes and costs: $20,000
  • The opening bid included $50,000 (one-half of assessed value) for homestead property, and that $50,000 is part of the surplus too.

So, the surplus held by the clerk of court is $130,000 ($150,000 sale price minus $20,000 taxes and costs). If there are no governmental liens or other lienholders, the former owner may claim the entire surplus.

Need help? If you have questions about claiming surplus funds after a tax deed sale, you can contact the clerk of court or seek legal advice to understand your options.

Common pitfalls

  • Missing the 120-day deadline: Lienholders who do not file a claim with the clerk of court within 120 days of the notice are barred from receiving surplus funds. This bar does not apply to the former owner, but waiting too long can complicate the process.
  • Confusing tax deed sales with mortgage foreclosures: The surplus process for tax deed sales is different from mortgage foreclosure. Do not rely on foreclosure rules or timelines.
  • Not understanding the surplus calculation: For homestead property, one-half of the assessed value is included in the opening bid and is part of the surplus, even if no one bids above the opening bid.
  • Overlooking governmental liens: Governmental liens are paid first from the surplus, which can reduce the amount available to the former owner.
  • Incomplete or incorrect claims: Failing to provide all required information or not properly swearing the claim can delay or prevent payment.
  • Assuming you need a lawyer to file: The former owner may file a claim directly with the clerk of court.

Summary

  • The surplus from a Florida tax deed sale is the amount the property sold for above the unpaid taxes and sale costs. For homestead property, one-half of the assessed value is included in the opening bid and is part of the surplus too.
  • The surplus is held by the clerk of court and is distributed first to governmental liens, then other lienholders, and finally to the former owner.
  • A sworn written claim must be filed with the clerk within 120 days of the notice of surplus funds. Lienholders who miss this deadline are barred, but the bar does not apply to the former owner.
  • If no claim is filed within 120 days, the titleholder of record is presumed entitled and the funds are handled under Florida’s unclaimed property law.
  • Next steps: Review any notice you receive from the clerk of court, and consider filing your claim as soon as possible. If you have questions or if there are competing claims, you may wish to seek legal advice.

This page is general information and does not create an attorney-client relationship.

Important information

Attorney advertising. Responsible attorney: Christian Cruz, Esq. Office: CRUZ LAW FIRM, 160 W Camino Real, 589, Boca Raton, FL, 33432.

Florida law does not require you to hire a lawyer or anyone else to claim tax deed surplus funds. A former owner may file a claim with the clerk of court directly.

This page is general information about Florida law, not legal advice. Reading it does not create an attorney-client relationship, and no such relationship is formed until we have a signed written agreement.

Fee arrangements depend on the posture of the matter and are set out in a written agreement before any work begins. We are glad to explain how fees would work in your situation when we speak.

FAQ

What is a Florida tax deed surplus?

The surplus is the amount the property sold for above the unpaid taxes and the costs of the sale. For homestead property, the opening bid also includes one-half of the assessed value, and that amount is part of the surplus too.

Who gets paid first from the surplus after a tax deed sale?

Governmental liens are paid first, then other lienholders (senior before junior), and finally the former owner (the titleholder of record).

How long do I have to file a claim for surplus funds after a tax deed sale?

A sworn written claim must be filed with the clerk of court within 120 days of the date of the notice of surplus funds. Lienholders who do not file in that time are barred, but this bar does not apply to the property owner.

What happens if no one files a claim for the surplus within 120 days?

If no claim is filed within 120 days, the titleholder of record is presumed entitled and the funds are handled under Florida’s unclaimed property law.

Is the process for claiming surplus funds after a tax deed sale the same as for a mortgage foreclosure?

No, a tax deed sale is a different process from a mortgage foreclosure, and the rules for surplus funds are not the same.