Detailed Answer — Overview

When a property sells at a foreclosure, tax sale, or sheriff’s sale for more than the amounts owed, the extra money (surplus funds) belongs to the person or entity that owned the property at the time of the sale or who otherwise has a legal right to those funds. In Alabama, claiming those surplus funds requires you to prove your ownership or entitlement with clear, certified documentation submitted to the office that holds the funds (often the county sheriff, clerk of court, or probate office) and sometimes to the court that ordered the sale.

Key categories of documents you may need

• Proof of ownership of the property at the time of sale:
  • Recorded deed (latest deed showing you as owner) — certified copy from the County Recorder/Revenue Commissioner or Probate/Recorder’s office.
  • Title report or abstract showing chain of title up to the time of sale.
  • Final judgment or court order if ownership is resolved by litigation (e.g., quiet title judgment).
• Identity and authority documents:
  • Government-issued photo ID (driver’s license or passport) for the claimant.
  • If claiming as a representative: a valid Power of Attorney (POA) that expressly authorizes handling surplus funds — the POA may need to be notarized and, in some cases, recorded.
  • For estates: Letters Testamentary or Letters of Administration (issued by the probate court) and the decedent’s death certificate.
  • For trusts: the trust document and certification of trustee showing the trustee’s authority to act on behalf of the trust.
  • For business entities: Certificate of Formation/Incorporation plus a certified resolution or officer’s affidavit showing the person signing has authority; provide an EIN and proof of good standing if requested.
• Proof of entitlement if you are not the recorded owner:
  • A recorded assignment, deed, or release showing transfer of the property interest before the sale.
  • A written, recorded contract or documented lien (e.g., mortgage or judgment) that creates an entitlement to surplus proceeds.
  • An affidavit explaining your claim with supporting evidence (e.g., settlement statements, escrow documentation, payoff statements).
• Court or sale-related documents:
  • Copy of the foreclosure or sale order / judgment that generated the surplus.
  • Notice of sale and proof of publication or service (if relevant).
  • Any prior claims or filings related to the surplus (to show priority or that you were not previously paid).
• Proof of mailing/address for payment:
  • Current mailing address and any additional contact information required by the paying office.
  • W-9 (for individuals/entities) — some counties require IRS Form W-9 before issuing funds.

How to compile and present the documentation

1. Start with a certified copy of the recorded deed that shows ownership on the sale date. County Recorder / Probate offices can provide certified copies for a fee.
2. If the owner is deceased, include the death certificate and probate “letters” proving the personal representative’s authority.
3. Include certified, recorded documents for transfers (deeds, assignments) rather than unsigned or informal papers.
4. Attach a short, signed affidavit that explains your relationship to the property and the basis for the claim (example: “I am the owner of record as shown in the attached deed recorded in Book X, Page Y in the Probate Office of County Z”). Have the affidavit notarized if required by the county.
5. Include identity documents and any entity-authorizing documents (business resolution, trust certification, or POA) so the paying office can verify authority to endorse funds.
6. Follow the local county procedure: some Alabama counties require filing a claim form with the sheriff’s office; others require filing a petition with the court. Contact the county sheriff or clerk where the sale occurred for exact submission rules and any claim forms.

Where to get certified records

Obtain certified deeds and recordings from the county Probate/Recorder or Revenue Commissioner where the property is recorded. Get letters testamentary/administration from the probate court that handled the decedent’s estate. If records are older or unclear, consider an updated title search through a title company.

Relevant Alabama law and resources

Rules for sheriff sales, distribution of sale proceeds, and procedures for judicial sales are governed by the Code of Alabama and related court rules. For a general starting point, consult the Code of Alabama and local county sheriff or clerk guidance. Alabama’s code and statutes can be browsed through the Alabama Legislature website: Code of Alabama (1975) — Table of Contents. If the surplus arises from a tax sale or a court-ordered judicial sale, the local rules and the judge’s order will identify how to claim the funds.

Common problems claimants face

• Missing or unrecorded transfers: if a deed wasn’t recorded before the sale, proving entitlement becomes harder.
• Wrong paperwork or unsigned affidavits: counties often reject incomplete or non-certified documents.
• Multiple claimants: when more than one party claims the surplus, a court proceeding may be required to resolve priority.
• Outdated contact or tax records: ensure the county has correct addresses and tax records to process payments.

If multiple people claim the funds

When two or more parties file competing claims, the paying officer (sheriff or clerk) may hold the funds and ask a court to resolve who is entitled. You will need to provide the strongest documentary proof of ownership or priority: recorded deeds, assignments, probate letters, or liens with recording dates showing priority.

When to get legal help

If the claim is straightforward (you are the recorded owner and can produce the deed and ID), you can often submit documents directly to the paying office. If the chain of title is contested, transfers are unrecorded, or there are competing claimants, you should consider consulting an attorney who handles foreclosures, probate, or real property disputes. An attorney can file an interpleader or other court action to resolve competing claims.

Helpful Hints

• Start with a certified copy of the recorded deed — it’s the most important document.
• Record transfers promptly. If you buy or inherit property, recording the deed protects your ability to claim any future surplus.
• If the owner died, get probate letters early — counties require them to pay estates.
• Bring originals and certified copies. Counties often require certified recordings and notarized affidavits.
• Contact the county office that handled the sale first (sheriff, clerk of court, or probate); ask for their surplus-claim checklist and any specific forms.
• Keep a clear chain-of-title packet: recorded deed(s), assignments, settlement statements, and any payoffs or liens in date order.
• Ask whether a W-9 is required before payment; some counties will not release funds until they have tax documentation.
• If competing claims exist, gather evidence of priority (dates of recording, judgments, and contracts) and be prepared for possible court proceedings.
• When in doubt, obtain a title search from a title company to identify recorded interests and the chain of title.