Claiming a Deceased Parent or Relative’s Florida Tax Deed Surplus

Short answer

If your parent or relative lost their Florida property in a tax deed sale, you may be able 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 family home or property to a tax deed sale is difficult, but there may be money left over after the sale. This surplus can be a significant financial resource for heirs or the estate. Understanding your rights and the process is crucial because:

The surplus is not paid automatically—you must file a claim.
If your parent or relative has passed away, the process can involve probate or estate administration.
Missing deadlines or filing incorrectly can delay or jeopardize your ability to receive the funds.
Governmental liens are paid first, then other lienholders, and only then does the former owner (or their heirs) receive any remaining surplus.

Steps

If you are the heir or personal representative of someone who lost property in a Florida tax deed sale, here’s how to approach claiming the surplus:

Confirm the sale was a tax deed sale A tax deed sale occurs when property taxes go unpaid, a tax certificate holder applies for a tax deed, and the clerk of the circuit court sells the property at public auction. This is different from a mortgage foreclosure.

Understand what the surplus is 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.

Wait for the notice of surplus funds The clerk of court will mail a notice of surplus funds to the former owner and any known lienholders after the sale.

File a sworn written claim within 120 days A sworn written claim must be filed with the clerk of court within 120 days of the date of the notice. If you are an heir, you may need to show your legal right to act for the estate or as a beneficiary. Lienholders who do not file within 120 days are barred from claiming. This bar does not apply to the property owner or their heirs.

Address estate and probate issues If the former owner is deceased, the estate may need to be opened in probate court to establish who is entitled to the surplus. This can involve: Filing for probate in Florida if not already done Obtaining Letters of Administration or an order determining heirs Submitting these documents with your claim to the clerk

Distribution order The clerk of court pays governmental liens first, then other lienholders (senior before junior), and finally the former owner or their heirs. If multiple claims are filed or there is a dispute, the clerk may ask the circuit court to decide who is paid, in a case called an interpleader.

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. Heirs and beneficiaries can still pursue a claim with the Florida Department of Financial Services if the surplus is sent there.

Example

Example scenario:

Suppose your mother owned a homestead property in Florida. She fell behind on property taxes, and the property was sold at a tax deed auction. The unpaid taxes and sale costs totaled $10,000. The opening bid included $10,000 plus one-half of the assessed value ($50,000), so the opening bid was $60,000. The property sold for $65,000.

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.
In this example, the surplus held by the clerk of court is $55,000 ($65,000 sale price minus $10,000 taxes and costs). This includes the $50,000 from the opening bid (one-half of the assessed value) and the $5,000 overbid.
Governmental liens are paid first, then other lienholders, then the former owner (or her estate/heirs).

Tip: If your parent has passed away, gather probate documents and file your claim with the clerk of court as soon as you receive the notice of surplus funds.

Common pitfalls

Confusing tax deed sales with mortgage foreclosures: The rules and timelines are different. This process is only for tax deed sales.
Missing the 120-day deadline: Lienholders who do not file within 120 days are barred from claiming. While this does not bar the owner or heirs, it can complicate the process.
Not addressing probate issues: If the former owner is deceased, failing to open probate or provide proof of heirship can delay or prevent payment.
Assuming surplus is paid automatically: The clerk of court will not release funds without a proper, sworn claim.
Overlooking governmental liens: These are paid first from the surplus, which can reduce or eliminate what is left for heirs.
Incomplete or incorrect paperwork: Missing signatures, lack of notarization, or missing supporting documents can result in rejection or delay.

Summary

A Florida tax deed sale happens when property taxes go unpaid and the clerk of the circuit court sells the property at public auction. This is different 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. Governmental liens are paid first, then other lienholders, then the former owner or their heirs.
A sworn written claim must be filed with the clerk within 120 days of the notice of surplus funds. Lienholders who do not file in that time are barred, but this does not apply to the owner or heirs.
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. Heirs can still pursue a claim with the Florida Department of Financial Services. Next steps:
If you recently received a notice of surplus funds after a tax deed sale, review the documents and gather any probate or estate paperwork.
Consider consulting a Florida real estate attorney to help navigate the probate and surplus claim process, especially if there are multiple heirs or complex estate issues.

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 the surplus after a Florida tax deed sale?

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

How long do I have to file a claim for surplus funds?

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 does not apply to the property owner or their heirs.

What if the former owner is deceased?

If the former owner has died, the estate or heirs may need to open probate and provide proof of their right to claim the surplus. The process may require court documents such as Letters of Administration or an order determining heirs.

What happens if no one files a claim 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. Heirs and beneficiaries can still pursue a claim with the Florida Department of Financial Services.