Answer Tax deed surplus funds recovery helps former property owners in Lee County, FL, claim money left over 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 your property in Lee County was sold at a tax deed auction because of unpaid property taxes, you may be entitled to claim surplus funds held by the Lee County Clerk of the Circuit Court. This process 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. Recovering these funds involves strict procedures and deadlines, and understanding the order in which claims are paid is essential.

Why choose us

Our firm assists former owners and heirs in Lee County, FL, with the process of claiming tax deed surplus funds. We guide you through each step, from reviewing the clerk’s notice to preparing and filing the required sworn claim. 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 your eligibility for surplus funds after a Lee County tax deed sale
  • Explaining the surplus distribution process and your rights as a former owner
  • Preparing and filing sworn written claims with the Lee County Clerk of the Circuit Court
  • Representing heirs or beneficiaries if the former owner has passed away
  • Assisting with surplus funds that have been transferred to the Florida Department of Financial Services under unclaimed property law
  • Responding to interpleader actions if there are conflicting claims

Steps

  1. Receive Notice
    The Lee County Clerk of the Circuit Court mails a notice of surplus funds after the tax deed sale.

  2. Review Surplus Details
    Determine if there is a 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.

  3. Understand Distribution Order
    Governmental liens are paid first. Other lienholders are paid next, in order of priority. The former owner (titleholder of record) is paid after all liens are satisfied.

  4. File a Sworn Claim
    File a sworn written claim with the Lee County Clerk of the Circuit Court within 120 days of the date on the notice. Lienholders who do not file within 120 days are barred from claiming. This bar does not apply to the property owner.

  5. Wait for Distribution or Court Decision
    If there are conflicting claims, the clerk may ask the circuit court to decide who is paid, in a process called interpleader.

  6. 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. We also assist with claims to the Florida Department of Financial Services.

Example

Example scenario:
A former owner’s homestead in Lee County is sold at a tax deed auction for $120,000. The unpaid property taxes and sale costs total $10,000. 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 Lee County Clerk of the Circuit Court would be $110,000.

Common pitfalls

  • Missing the 120-day deadline to file a sworn claim with the Lee County Clerk of the Circuit Court (lienholders are barred if they miss this deadline; the bar does not apply to the property owner)
  • Confusing tax deed sales with mortgage foreclosures (the processes and rules are different)
  • Not understanding that governmental liens are paid before other claims
  • Failing to provide all required information or sworn statements in the claim
  • Overlooking surplus funds that have been transferred to the Florida Department of Financial Services

FAQ

What is a tax deed sale? A tax deed sale occurs 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 after a tax deed sale in Lee County? The surplus funds are held by the Lee County Clerk of the Circuit Court. Who gets paid from the surplus, and in what order? Governmental liens are paid first. Other lienholders are paid next, in order of priority. The former owner (titleholder of record) is paid after all liens are satisfied. How long do I have to file a claim for surplus funds? A sworn written claim must be filed with the Lee County Clerk of the Circuit 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. What happens if there are conflicting claims? If claims conflict, the clerk may ask the circuit court to decide who is paid, in a case called an interpleader. What 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. We also assist former owners and heirs with claims to the Florida Department of Financial Services. Do I need a lawyer to file a claim? A former owner may file a claim with the clerk directly. Legal assistance is available if you want help with the process or if there are complications.

This page provides general information about tax deed surplus funds recovery in Lee County, FL, 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.