Claiming Surplus Funds After an Alabama Tax Foreclosure Sale: A Step-by-Step FAQ

Short answer: If a tax foreclosure sale of a property in Alabama generated money in excess of the taxes, interest, and sale costs (a “surplus” or “overage”), the person entitled to that surplus is usually the former owner (or the owner’s heirs or personal representative). To recover the money you must locate the surplus, prove your entitlement, and file a claim or petition with the county office that holds the funds. Time limits and procedures vary by county and by the facts (for example, whether the owner is alive), so act promptly and check Alabama law for detailed rules.

What is a surplus (overage) after a tax sale?

When a parcel sells at a tax sale for more than the taxes, fees, interest, and authorized costs, the extra funds are called a surplus or overage. The surplus does not belong to the purchaser — it belongs to entitled parties (typically the former record owner first, then other claimants such as junior lienholders). Counties must keep track of and make the surplus available to rightful claimants.

Who can claim the surplus in Alabama?

Primary: the former record owner of the property at the time of the tax sale (if alive).
If the owner is deceased: the owner’s heirs, estate personal representative (executor/administrator), or beneficiaries under a probate administration.
Secondary: certain lienholders or creditors who held valid recorded liens against the property at the time of sale may have rights to part or all of the surplus, depending on priority.

Where to start — immediate steps

Get the sale information. Contact the county tax collector (or revenue commissioner) or the county probate office where the property sits and ask for the tax sale file: sale date, sale price, the purchaser’s name, and whether the county reports any surplus/overage amount.
Confirm whether a surplus exists. Ask the county to confirm whether it is holding a surplus, or if a purchaser was required to deposit surplus funds with the county or the probate court. Different counties handle the bookkeeping differently.
Gather proof of your claim. Collect documents showing you (or your mother) were the owner at the time of sale and any estate documents if your mother is deceased (see the Document Checklist below).
Ask the county about the local claiming procedure. Some counties require a simple written claim to the tax office; others require a petition filed with the probate court or circuit court. Follow the county’s procedure and form requirements closely.

Typical documents you will need

Identification for the claimant (government ID).
Proof of ownership at time of sale: recorded deed or tax records showing the owner’s name.
Copy of the tax sale record and any county statement showing the surplus amount.
If the owner is deceased: death certificate plus letters testamentary or letters of administration (proof the claimant is the estate’s representative) or a certified copy of the will, depending on the county’s requirements.
If you act for the owner but are not the owner: a notarized power of attorney or other documents showing your authority to act.
If you are an heir claiming without probate: documentation proving heirship (e.g., certified probate documents, heirship affidavit) as the county requires.

Filing the claim — common procedures

Procedure varies by county. Typical paths:

Administrative claim at the county tax office or treasurer: submit a written claim with supporting documents; the office reviews and, if valid, releases funds.
Petition to the probate court or circuit court: where the county requires court adjudication, file a petition asking the court to order payment of the surplus to you. The court may require notice to other interested parties (lienholders, purchaser) and may hold a hearing.
Estate collection: if the property owner is deceased and an estate is open, the personal representative may collect the surplus as an asset of the estate and distribute it under probate rules.

Deadlines and statutes to check

Deadlines and exact procedures depend on the applicable provisions in Alabama law and local rules. Review the Alabama statutes governing sales for unpaid taxes (Title 40, Chapter 10) for statutory procedures on tax sales, notices, and sale administration. You can start by reviewing the state code here: Alabama Code (1975) table of contents and search within Title 40 — Revenue and Taxation, Chapter 10 (Sale of Lands for Taxes).

Because statutory deadlines, redemption rights, and surplus procedures can differ by fact pattern (e.g., homestead status, whether the owner redeemed, whether the owner died), contact the county quickly. If you miss a statutory deadline you may lose the ability to recover the funds.

If your mother is incapacitated or deceased

If she is alive but incapacitated: check whether a valid power of attorney exists that authorizes you to act. Present the power of attorney to the county and follow its instructions.
If she has died: obtain the death certificate and probated documents. The estate’s personal representative normally makes the claim and treats the surplus as part of the estate assets.
If no estate was opened and you are the heir: many counties will require either a formal probate or an affidavit of heirship before releasing funds.

When to get help from an attorney

Consider hiring an attorney if:

Multiple claimants contest the surplus (other lienholders or heirs).
The county requires court action or refuses to release funds.
There are questions about authority (proof of executor, heirship, or power of attorney).
Large sums are involved and you want to protect your rights and expedite the process.

An attorney who handles tax sales, probate, or real estate can advise whether you should file in probate or circuit court and help prepare documents and notices.

Helpful Hints

Start local: call the county tax collector or probate office where the property sits. They control the sale file and can tell you whether a surplus exists and what steps to take.
Act quickly: administrative windows and statutory deadlines can bar late claims.
Get certified copies: counties commonly ask for certified death certificates, recorded deeds, and certified probate letters— originals or certified copies speed the process.
Keep records: keep receipts, correspondence, and certified mail receipts if you send documents to the county or file in court.
Check priority: a surplus may be split based on lien priority. A recorded mortgage or judgment may have a right to some or all of the excess funds.
If the owner moved away or is unreachable: you may still be able to collect as an heir or representative, but you will need stronger documentation of entitlement.
Ask about fees: some counties charge small administrative fees to process a surplus claim; courts may also charge filing fees for petitions.

Where to find more information

Alabama Code (Title 40 — Revenue & Taxation, Chapter 10 — Sale of Lands for Taxes): review the statutes at the Alabama Legislature’s code pages: https://www.legislature.state.al.us/alison/CodeOfAlabama/1975/coatoc.htm (search within Title 40, Chapter 10).
Alabama Judicial System: for information about probate court procedures, visit the Administrative Office of Courts: https://judicial.alabama.gov/.
Your county’s official website or tax collector’s office: for county-specific forms and processes.

Final practical checklist

Contact county tax collector/probate office to confirm a surplus.
Gather proof of ownership and identity (deed, tax records, ID).
If necessary, obtain death certificate and probate letters or heirship documents.
Follow the county’s claim or court petition process exactly and submit supporting documents.
If the county declines the claim or multiple parties contest, consult an attorney experienced in Alabama tax sale and probate matters.

Disclaimer: I am not a lawyer and this article is for general informational purposes only. This is not legal advice. Rules and procedures vary by county and by the exact facts. For legal advice about your specific situation, consult a licensed attorney in Alabama or the county office that handled the sale.