Arizona: Claiming Surplus Funds After a Tax Foreclosure Sale

Detailed answer

Short answer: If a county tax sale of real property in Arizona produced money in excess of the taxes, penalties, interest and sale costs, the former owner (or the former owner’s heirs or personal representative) and certain lienholders can seek the surplus from the county. To recover those funds you will need to identify the county that ran the sale, gather proof of your authority to act for the decedent (death certificate and probate or small‑estate documentation), and file a claim with the county treasurer or follow the county’s reclamation procedures. Because procedures and strict time limits vary, contact the county treasurer where the property is located as soon as possible.

Why surplus funds exist

When a property is sold to satisfy delinquent property taxes, the sale can bring more than the total tax lien, penalties, fees and sale costs. That extra money is called the surplus (sometimes called an overage). Arizona law requires surplus money to be distributed to entitled parties according to statutory priorities.

Who has priority to claim surplus funds

• Former owner(s) of the property (including the decedent’s estate and heirs)
• Recorded lienholders (mortgages, judgment liens) in the order of their recording priority
• Other parties with a recorded interest

Typical steps to claim surplus funds in Arizona

1. Identify the county and sale details. The county treasurer (or another county office) runs tax sales. You will need the parcel number, sale date, and the amount by which the sale exceeded the taxes and costs. Start with the county treasurer where the property sits.
2. Confirm surplus exists and who holds it. Ask the county treasurer whether surplus funds were generated and whether the county is holding them. Counties often hold surplus for a limited time while distributing according to statute and processing claims.
3. Assemble proof of your claim. For a surviving child seeking funds on behalf of a deceased parent, typical documents include the decedent’s death certificate; proof that the decedent was the record owner of the property (deed); and documentation showing your status as an heir or the estate representative (letters testamentary, letters of administration, or a small‑estate affidavit if permitted by the county).
4. File the county claim form or follow county procedures. Many counties publish a surplus claim form or require a notarized affidavit. Submit original or certified copies of supporting documents and identification. If you are an heir but there is no formal probate, counties may accept a certified copy of a death certificate plus a sworn affidavit of heirship or a small‑estate affidavit when state law and county rules allow.
5. If the county denies the claim, consider judicial relief. If the treasurer refuses a valid claim, a claimant may need to ask the court to order distribution of surplus funds. That may require filing a civil action or a petition in probate, depending on the circumstances.

Documents commonly required

• Government photo ID for the claimant
• Death certificate for the property owner
• Copy of the recorded deed showing the owner’s name
• Letters testamentary or letters of administration (if a personal representative exists)
• Affidavit of heirship or small estate affidavit when probate has not been opened (check county acceptance)
• Documentation of recorded mortgages or liens if you claim as a lienholder

Time limits and urgency

Counties may have deadlines for filing surplus claims or internal deadlines to remit funds before state escheat or other distribution rules apply. Do not delay. The sooner you contact the county treasurer and submit proof, the better your chances of recovering funds without litigation.

Where to look for Arizona statutes and official guidance

Arizona property tax rules and distribution of tax sale proceeds are governed by the Arizona Revised Statutes (Title 42 covers taxation and property tax procedures). For the governing statutes and county authority, see the Arizona Revised Statutes, Title 42: https://www.azleg.gov/arsDetail/?title=42. For probate procedures and forms you may need when a property owner is deceased, see the Arizona Judicial Branch self‑help pages: https://www.azcourts.gov/.

When to consult an attorney

If the county denies your claim, multiple parties claim the same surplus, the estate is unresolved, or the required documentation is complex, an attorney who handles probate and tax‑sale issues can help you prepare a claim, file necessary probate paperwork, or bring a court action to recover the funds. Because there are procedural and timing traps, consider legal help if you run into resistance or competing claimants.

Disclaimer: This article is informational only and is not legal advice. It does not create an attorney‑client relationship. For advice specific to your situation, contact a licensed attorney in Arizona.

Helpful hints

• Contact the county treasurer where the property is located before filing anything — county procedures vary.
• Bring certified copies of the death certificate and recorded deeds; counties often require originals or certified copies for verification.
• If probate has not been opened and the estate is small, ask county staff whether a small‑estate affidavit is sufficient rather than full probate.
• If you are a mortgage or lienholder, provide recorded lien documents and show the priority date of your interest.
• Keep detailed records of all communications with county officials (dates, names, what was requested).
• If multiple heirs exist, coordinate a single claim or provide written consent from other heirs to avoid delays and disputes.
• Act quickly — administrative deadlines and potential escheat rules can bar late claims.
• When in doubt, consult an Arizona probate or tax attorney — a short consult can often save time and money.