The Short Answer

In Florida, a “surplus funds case” usually refers to a dispute (often inside a foreclosure court file) over who is legally entitled to money left over after a foreclosure sale pays the judgment, costs, and required disbursements. These cases commonly involve former owners, junior lienholders, heirs, or people claiming rights by assignment.

What Florida Law Says

When a property sells at a judicial foreclosure sale for more than what is owed under the final judgment and required sale-related disbursements, the remaining money is called “surplus funds.” Florida law sets a priority framework for who can claim that surplus and creates a presumption about who should receive it, but the presumption can be challenged—especially when there are subordinate liens, multiple owners, estates, or assignments.

The Statute

The primary law governing this issue is Fla. Stat. § 45.032.

This statute defines “surplus funds” and establishes a rebuttable presumption that the “owner of record” as of the date the lis pendens was filed is entitled to the surplus after timely claims by subordinate lienholders are addressed, with court hearings required when entitlement is disputed.

Florida also regulates assignments of surplus rights (a common source of litigation) under Fla. Stat. § 45.033, including requirements and limits that can determine whether an assignee gets paid.

If the owner of record has died, surplus claims often overlap with probate issues (for example, proving who the proper beneficiaries/heirs are). Florida law also addresses what happens when funds remain unclaimed and are treated as unclaimed property after a period of time. Under Fla. Stat. § 45.032, surplus remaining with the clerk for a year is presumed unclaimed (with limited categories of people able to claim it later, including certain beneficiaries of a deceased owner of record).

For a deeper discussion of surplus proceeds in a different (but related) context, see: How Do I Recover Surplus Funds After a Tax Sale in Pennsylvania?. (Rules differ by state, but it helps explain the concept of “surplus proceeds” and competing claims.)

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: Under Fla. Stat. § 45.032, surplus funds not disbursed within one year are presumed unclaimed (unless there is a pending court proceeding), which can change where the money is held and who can claim it.
• Burden of Proof: If someone other than the owner of record claims the funds (including an assignee), the court may require an evidentiary hearing, and the claimant must prove entitlement. See Fla. Stat. § 45.032(3)(b).
• Exceptions and Competing Claims: Subordinate lienholders, multiple owners, bankruptcy issues, probate/estate questions, and disputed assignments can all affect who gets paid and in what order. Assignments are heavily regulated under Fla. Stat. § 45.033, and a noncompliant assignment can be challenged.

Trying to handle this alone can lead to missed deadlines, an avoidable evidentiary hearing, or a court order sending the funds to someone else. An attorney can evaluate entitlement, identify competing claims, and present the right evidence to the court—especially when the owner is deceased and probate documentation is needed.

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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.