How to Recover Surplus Funds After a Montana Tax Sale

Disclaimer: This is general information only and not legal advice. I am not a lawyer. For advice about a specific situation you should consult a licensed attorney in Montana or contact the county treasurer where the property is located.

Short answer — who gets the surplus and how the process works

When a Montana property is sold at a tax sale, the sale proceeds first pay the delinquent taxes, interest, costs, and sale expenses. If the sale price exceeds those amounts, the extra money (the surplus) belongs to prior owners or other parties who held valid recorded interests (for example, mortgage or lien holders) at the time of the tax sale. Montana law and local county procedures govern how to claim that surplus.

Detailed answer — the step‑by‑step process

1. How a surplus happens

At a tax sale a county typically sells property to satisfy unpaid property taxes. If the winning bidder pays more than the total owed for taxes, penalties, interest, and sale costs, the remainder is the surplus fund. The county treasurer or other county official will account for that surplus after the sale.

2. Who may claim the surplus

Primary claimants are:

The former record owner(s) of the property;
Persons or entities holding recorded liens or mortgages that were in place before the tax sale; and
Other parties with legally recognized claims that existed before the tax sale.

Priority among claimants depends on the order and nature of recorded interests. Claims filed after the sale are evaluated under Montana law and county rules.

3. Initial action — contact the county treasurer

After a sale, contact the county treasurer’s office for the county where the property is located. The treasurer manages tax sales and surplus funds, keeps the sale records, and can tell you whether a surplus exists, how much it is, and what the county’s procedural steps are for making a claim.

4. What to file — documentation and proof

Counties typically require a written claim and proof of your interest. Commonly requested documents include:

Government issued photo ID;
Proof of ownership (deed, title report) or a recorded lien/mortgage instrument;
A certified copy of the county tax sale record (often available from the treasurer); and
Affidavits or sworn statements supporting your claim, if required.

Submit the claim to the county treasurer’s office following their instructions. The treasurer will review and either release the surplus or instruct you about additional steps (for example, court proceedings if multiple claimants exist).

5. If multiple claimants or a dispute arises

If more than one person claims the surplus, or the county questions the validity of a claim, the county may require the parties to sort out the competing claims in court. A district court can determine who is entitled to the surplus and order distribution. If you expect a conflict, consult an attorney promptly.

6. Deadlines and timing

Time limits to file a claim vary depending on the statute and local procedures. Some counties require claimants to present claims within a fixed period after the sale. Because these deadlines matter, contact the county treasurer immediately after learning of a tax sale. You should also review Montana’s statutes on tax sales and distribution for precise deadlines applicable to your situation. (See Montana statutes on property tax sale procedures referenced below.)

7. What happens to unclaimed surplus funds

If nobody claims the surplus within the applicable statutory or administrative time period, the county will follow statutory rules to hold, escheat, or otherwise dispose of the unclaimed funds. In practice, unclaimed funds may be held by the county for a time and then disposed of according to state law. Ask the county treasurer how long they will hold funds and what happens if no claim is made.

8. When to get an attorney

Consult an attorney if:

You believe you are entitled to a large surplus;
Claimants dispute who gets the money;
You need help preparing court pleadings or complex title documentation; or
The county indicates litigation will be necessary to resolve competing claims.

Relevant Montana statutes and resources

Montana’s rules for tax sales and distribution of sale proceeds appear in the Montana Code (Title 15 – Revenue and Taxation). For the specific statutory language and any deadlines that apply in your case, review the applicable provisions on the Montana Legislature website and consult the county treasurer:

Montana Code Annotated — Title 15 (Revenue and Taxation), Chapter on property tax and tax sales: https://leg.mt.gov/bills/mca/title_15/chapter_18/
Montana Department of Revenue — property tax overview and contacts: https://mtrevenue.gov/property-taxes/
Contact the county treasurer for the county where the property sits (each county administers its tax sales).

Helpful Hints

Act quickly. Contact the county treasurer as soon as you learn of a tax sale affecting a property in which you had an interest.
Gather proof. Collect deeds, mortgage instruments, tax records, and identification before making a claim.
Get certified copies. Ask the treasurer for certified sale records and receipts showing the amount paid at sale.
Confirm deadlines in writing. Ask the treasurer to confirm any statutory or administrative deadline for filing a claim in writing or by email.
Expect possible court involvement. If multiple parties claim the surplus, the county may require a court order to distribute funds.
Consider title insurance or a title company. A title report can identify recorded interests and their priority before or after the sale.
Document communications. Keep copies of all paperwork and a record of calls or emails with county officials.
Consult a Montana-licensed attorney for disputes or large sums. Legal counsel can prepare pleadings and protect your rights before the court.

If you’d like, tell me the county where the property is located and I can list the county treasurer contact information and point you to any local forms or procedures the county posts online.