The Short Answer

In Florida, if a tax deed sale brings in more than what is required to satisfy the statutory bid and certain governmental liens, the remaining “surplus” is held by the clerk and can be paid out to eligible lienholders and, ultimately, the former titleholder (owner) depending on priority and timely claims. The key issue is that there are strict notice-and-claim deadlines, and lien priority disputes can delay or reduce what a former owner receives.

What Florida Law Says

Florida’s tax deed surplus framework generally works like this: the clerk first pays amounts required by statute (including amounts owed to the tax certificateholder and certain governmental liens of record). If money remains, the clerk holds it for the benefit of people with an interest in the property (such as lienholders and the former titleholder), and the clerk must provide notice and a limited window for claims. If there are competing claims, the clerk may ask the circuit court to decide how the surplus is distributed.

The Statute

The primary law governing this issue is Fla. Stat. § 197.582.

This statute establishes that when a tax deed sale produces funds in excess of the statutory bid, the clerk must distribute the surplus by paying qualifying governmental liens first and then holding any remaining balance for eligible claimants (including lienholders and the former titleholder), subject to notice, deadlines, and priority rules.

Why You Should Speak with an Attorney

While the statute provides the general rule, applying it to your specific situation is rarely simple. Legal outcomes often depend on:

• Strict Deadlines: After the clerk mails the “Notice of Surplus Funds,” most non-owner claimants have 120 days to file a proper claim, or the claim can be barred. See Fla. Stat. § 197.582(3) and (5).
• Burden of Proof: If you are claiming as a lienholder (or through an estate or assignment), you typically must show the legal basis for the claim and the amount due, and disputes can trigger court involvement (interpleader) where documentation and priority analysis matter. See Fla. Stat. § 197.582(6).
• Exceptions: Governmental liens are treated differently, and recorded governmental lienholders may have their own request requirements; also, the clerk may pay governmental units before nongovernmental claimants. See Fla. Stat. § 197.582(7).

Trying to handle this alone can lead to missed deadlines, incomplete claims, or receiving less than you are legally entitled to—especially when multiple lienholders, probate/estate issues, or title questions are involved.

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Disclaimer: This article provides general information under Florida law and does not create an attorney-client relationship. Laws change frequently. For legal advice specific to your situation, please consult with a licensed attorney.