How to Recover Surplus Proceeds After a Florida Tax Deed Sale

Disclaimer: This article explains general Florida legal procedures and is not legal advice. Consult a Florida-licensed attorney for advice about your specific situation.

Detailed answer — overview of the Florida process

When a county sells real property for unpaid taxes in Florida and the sale brings in more money than is needed to satisfy the tax lien, interest, penalties and sale costs, those extra funds (called “surplus moneys”) belong to persons who held equitable or legal interests in the property at the time of the sale. Florida law sets a process for claiming and distributing those surplus funds. The governing statute is Florida Statute section 197.582: Fla. Stat. § 197.582.

Who may be entitled to surplus funds?

The former titled owner(s) at the time of the sale;
Any recorded mortgagee, lienholder or judgment creditor who had an interest in the property at the time of the sale;
Any other party who can prove a lawful interest in the surplus proceeds (for example, purchasers at an earlier judicial sale with priority rights).

Basic steps to recover surplus proceeds

Locate the clerk of the circuit court in the county where the property is located. The clerk handles tax deed sales and holds any surplus funds.
Confirm the existence and amount of surplus funds. The clerk’s office can tell you if funds remain after the tax deed sale and the amount being held.
Prepare a written claim. Typically the claimant files a verified claim or application with the clerk. The claim should identify the tax deed sale, parcel, the date of the sale, the claimant’s interest (owner, mortgagee, etc.), and include supporting documents proving entitlement (deed, mortgage, judgment, identification).
File the claim and provide proof of identity and entitlement. Submit copies of recorded instruments, photo ID, and any court orders that support your claim. The clerk may have a local form or review requirements posted on the clerk’s website.
If multiple claimants exist, the clerk may require litigation or interpleader to determine entitlement. Competing claimants often must resolve distribution through a court proceeding unless they reach an agreement.
If the claim is allowed, the clerk pays the surplus to the person entitled. If the clerk denies the claim or there are competing claims, a claimant may file a civil action in circuit court to resolve entitlement.

Deadlines and what happens if you wait

Florida law provides limited timeframes for claiming surplus funds. A claimant should act promptly. If surplus funds remain unclaimed for a statutory period or if no valid claim is presented, the clerk may transfer or deposit those funds according to the statute. See Fla. Stat. § 197.582 for precise procedures and time periods.

What to expect when multiple parties claim the same funds

When more than one person or entity claims the surplus, the clerk ordinarily will not unilaterally distribute the money without legal assurance. The clerk can require claimants to litigate distribution in circuit court or to enter into written agreements that resolve competing claims. The claimant that can show superior priority (for example, a recorded mortgage that predates the tax lien) usually has the stronger claim.

Example (hypothetical facts)

Suppose a county sells a property at tax deed sale and the successful sale brings $18,000. After paying the tax certificate holder, interest and sale costs, $12,000 remains. The former owner believes the surplus belongs to them and files a verified claim with the circuit court clerk, attaching a recorded deed and photo ID. A bank with a recorded mortgage dated before the tax lien also files a competing claim. The clerk notifies both claimants that distribution requires a court determination. The parties either agree how to split the $12,000 or ask the circuit court to determine who is entitled and in what proportion.

Helpful Hints

Contact the county clerk of the circuit court where the property is located — that office holds the funds and will explain local claim forms and proof requirements.
Bring or attach certified copies of recorded documents (deeds, mortgages, satisfaction, judgments) and photo identification.
Act quickly. Timely filing increases your chances of recovery and avoids statutory deposits to the county if you miss deadlines.
If you are a lender or lienholder, maintain clear recording records to preserve priority and make a prompt claim if surplus arises.
If the clerk rejects your claim or competing claims arise, be prepared to file a declaratory or interpleader action in Florida circuit court to adjudicate rights to the funds.
Keep careful records of all communications with the clerk and other claimants. Demand letters, filings, and proof of service help establish your position.
Consider consulting a Florida attorney experienced in tax deed and real property matters if the amount is significant or if there are competing claims.

Key Florida statute

For the statutory framework and precise procedures, see Florida Statute § 197.582: https://www.flsenate.gov/Laws/Statutes/197.582.

Final notes

Recovering surplus funds after a Florida tax deed sale is often straightforward when a single clear owner claims the money and can prove entitlement. It becomes more complex when lienholders or other parties assert competing rights. The clerk of the circuit court is your starting point, and litigation may be necessary in contested cases. If you are unsure how to proceed, consult a Florida-licensed attorney who handles tax deed and property claims.