Answer
We help former property owners in Palm Beach County, FL recover surplus funds held by the clerk of court after a tax deed sale. 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.
If you have lost your property in a tax deed sale, you may be entitled to claim these surplus funds. Our firm guides you through the process, ensuring your claim is properly filed and your rights are protected.
Why choose us
Navigating the tax deed surplus process in Palm Beach County can be confusing, especially after losing a home. We focus on helping former owners understand their rights, prepare the necessary paperwork, and communicate with the Palm Beach County Clerk of the Circuit Court. Our office is located at 160 W Camino Real, 589, Boca Raton, FL 33432, and we are available to discuss your situation by phone at (561) 933-4747.
Services offered
- Reviewing the tax deed sale records and surplus notice
- Explaining the surplus claim process and your rights as a former owner
- Preparing and filing a sworn written claim with the Palm Beach County Clerk of the Circuit Court
- Representing former owners, lienholders, and heirs in surplus claims, including those sent to the Florida Department of Financial Services
- Advising on the order of payment, including governmental liens and other lienholders
- Assisting if the clerk refers the matter to the circuit court for a decision
Steps
-
Review the surplus notice
After a tax deed sale, the Palm Beach County Clerk of the Circuit Court mails a notice of surplus funds to interested parties. -
Determine eligibility
Confirm whether you are the former owner, a lienholder, or an heir who may have a right to claim the surplus. -
Prepare a sworn written claim
A sworn written claim must be filed with the clerk within 120 days of the date of the surplus notice. Lienholders who do not file within this period are barred from claiming the funds. This bar does not apply to the property owner. -
Clerk reviews claims
The clerk pays governmental liens first, then other lienholders in order of priority, and finally the former owner. -
Court involvement if needed
If there are conflicting claims, the clerk may ask the circuit court to decide who is entitled to the surplus in a process called interpleader. -
Unclaimed funds
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.
Example
Example scenario:
Maria owned a homestead property in Palm Beach County but fell behind on her property taxes. The tax certificate holder applied for a tax deed, and the property was sold at a public auction by the clerk of court. The property sold for $180,000. The unpaid taxes and costs of the sale totaled $10,000. Because it was a homestead, the opening bid included one-half of the assessed value, which was $40,000. 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 clerk of court holds the surplus funds. Maria receives a notice of surplus funds and, with help, files a sworn claim within 120 days. After any governmental liens and other lienholders are paid, Maria is eligible to receive the remaining surplus.
Common pitfalls
- Missing the 120-day deadline: Lienholders who do not file a claim with the clerk within 120 days of the surplus notice lose their right to payment. This bar does not apply to the former owner.
- Confusing tax deed sales with mortgage foreclosure: The tax deed process is different from foreclosure. The surplus rules are not the same.
- 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.
- Incomplete or incorrect claims: Claims must be sworn and properly filed with the Palm Beach County Clerk of the Circuit Court.
- Overlooking governmental liens: Governmental liens are paid first from the surplus before other lienholders or the former owner.
FAQ
What is a tax deed sale? 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. What is the surplus from a tax deed sale? 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 holds the surplus funds? The surplus funds are held by the Palm Beach County Clerk of the Circuit Court. Who gets paid from the surplus, and in what order? Governmental liens are paid first. Then, other lienholders are paid in order of priority (senior before junior). After that, the former owner (the titleholder of record) is paid. How long do I have to file a claim? A sworn written claim must be filed with the clerk within 120 days of the date of the surplus notice. Lienholders who do not file within this time are barred from payment. This bar does not apply to the property owner. What happens if no claim is filed 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. Can the clerk decide who gets the surplus if there are multiple claims? If there are conflicting claims, the clerk may refer the matter to the circuit court in a process called interpleader to determine who is entitled to the funds. Do I need a lawyer to file a claim? A former owner may file a claim directly with the clerk. Our firm can assist with preparing and filing the claim, especially if there are complications or disputes.
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.