Short answer

If your property was sold at a Florida tax deed sale, you may be entitled to 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 can be overwhelming, but you may still have a financial interest in the outcome. If there is a surplus, you could recover money that exceeds what was owed in taxes and sale costs. This can provide crucial funds during a difficult transition, help pay off other debts, or support your next steps in housing. Missing out on surplus funds means leaving money unclaimed that could rightfully help you move forward.

Steps

To find out if a Florida tax deed sale left surplus funds for you, follow these steps:

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.

Check the sale results Visit the website of the clerk of court in the county where your property was located. Most clerks post tax deed sale results online. Look for your property by address, parcel number, or case number.

Determine if there is a surplus Review the sale information. 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 any surplus funds after the sale.

Watch for a notice The clerk mails a notice of surplus funds after the sale. This notice goes to the former owner and any lienholders.

File a claim if there is a surplus To claim surplus funds, you must file a sworn written claim with the clerk of court within 120 days of the date of the notice of surplus funds. Lienholders who do not file within 120 days are barred from claiming. This bar does not apply to the property owner.

Understand the order of payment Governmental liens are paid first from the surplus. Other lienholders are paid next, with senior liens paid before junior liens. The former owner (the titleholder of record) is paid last.

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 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 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

Example:

Suppose your homestead property was sold at a tax deed sale for $120,000. The unpaid property taxes and costs of the sale totaled $15,000. The opening bid included one-half of the assessed value, which was $30,000. 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 would be $105,000 ($120,000 sale price minus $15,000 taxes and costs). The $30,000 from the opening bid is included in the surplus calculation for homestead property.

Tip: If you are unsure whether your property was homestead or how the surplus was calculated, contact the clerk of court in the county where the sale occurred for clarification.

Common pitfalls

  • Confusing tax deed sales with mortgage foreclosures
    • The rules and timelines are different. Surplus from a tax deed sale is handled by the clerk of court, not through foreclosure procedures.
  • Missing the 120-day claim window for lienholders
    • Lienholders who do not file a claim within 120 days of the notice are barred from receiving surplus funds. This does not apply to the former owner.
  • Not checking for governmental liens
    • Governmental liens are paid first from the surplus, which can reduce or eliminate the amount available to the former owner.
  • Assuming you need a lawyer to file a claim
    • The former owner may file a claim directly with the clerk of court. Legal assistance can help with complex situations, but is not required.
  • Not updating your address with the clerk
    • If the clerk cannot reach you, you may miss important notices about surplus funds.
  • Believing the right to claim is lost if you miss the 120 days
    • The 120-day bar applies to lienholders, not to the former owner. If no claim is filed, the funds are handled under Florida’s unclaimed property law, and the former owner can still pursue a claim there.

Summary

  • A tax deed sale occurs when property taxes go unpaid and the clerk of court sells the property at public auction.
  • 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 and mails a notice of surplus funds after the sale.
  • A sworn written claim must be filed with the clerk within 120 days of the notice. Lienholders are barred if they miss this window, but the former owner is not.
  • Governmental liens are paid first, then other lienholders, then the former owner. Next steps:
  • Check the clerk of court website in the county where your property was sold to see if surplus funds are available.
  • If you receive a notice of surplus funds, review it carefully and consider filing a claim promptly.

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 holds the surplus after a tax deed sale in Florida?

The clerk of court holds the surplus funds after a tax deed sale.

Who gets paid first from the surplus?

Governmental liens are paid first, then other lienholders in order of priority, and then the former owner (the titleholder of record).

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 within that time are barred, but this 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 to the surplus, and the funds are handled under Florida’s unclaimed property law.