Detailed answer — what the law says and how the process works

When a municipality in New Hampshire sells real property for unpaid property taxes, any amount paid by the buyer that exceeds the total taxes, interest, fees, and sale costs is called a surplus (sometimes called an overage). State law requires the municipality to hold those surplus funds and to pay them to the person or entity entitled to them. The general rules for tax sales and related procedures are set out in New Hampshire’s tax sale statutes (RSA Chapter 80). For the statute text, see RSA Chapter 80: https://www.gencourt.state.nh.us/rsa/html/III/80/80-mrg.htm.

Basic steps you should expect:

1. Identify that a surplus exists. After a tax sale, the purchaser pays the municipality. If the sale price exceeds the taxes, interest, municipal fees, and sale costs, the town or city will have surplus funds.
2. Contact the municipal tax collector or treasurer. The tax collector (or another designated municipal officer) maintains records of the sale and any surplus. Contact them to learn whether surplus funds exist and whether a claim has already been made.
3. Determine who has priority to the funds. Priorities commonly include municipal liens and costs, prior tax liens, mortgagees and lienholders, judgment creditors with recorded liens, and, finally, the former owner. Which parties are entitled (and in what order) depends on the specific liens recorded against the property and the amounts due.
4. File a written claim and provide documentation. To recover surplus funds you must typically make a written claim to the municipality. Provide proof of your legal interest (e.g., deed, mortgage, assignment of lien, judgment lien, ID, or letters testamentary if the owner is deceased). The municipality may have a standard claim form or process.
5. Resolve competing claims. If more than one party claims the surplus, the municipality may require the claimants to resolve priority by agreement or through court action. Municipalities sometimes deposit disputed surplus amounts with the court and ask the court to determine rightful ownership (an interpleader or similar action).
6. Receive payment or litigate if necessary. If you have an uncontested claim and provide the required documents, the municipality will usually release the funds to you. If the municipality denies your claim or competing claimants exist, you may need to pursue a civil claim in Superior Court to recover the money.

Timing and deadlines

Deadlines vary based on the facts and any statutory time limits or municipal procedures. You should act promptly. Waiting increases the chance other lienholders or claimants will assert priority. If you are a former owner, you should also review any redemption rights that applied before the deed was issued—those rights affect how and when funds become available. For the baseline statutory rules for tax sales and post-sale procedures, consult RSA Chapter 80: https://www.gencourt.state.nh.us/rsa/html/III/80/80-mrg.htm.

Common outcomes

• If you are the recorded owner and no superior liens exist, you are often entitled to the surplus.
• If a mortgage or other lien recorded before the tax lien remains unpaid, that lienholder may have priority.
• If multiple parties have legitimate claims, a court may split the funds according to priority and amount of their claims.

How to file a claim — practical checklist

Follow these steps to prepare and file a claim for surplus funds:

1. Contact the municipal tax collector or treasurer to confirm the surplus and request the municipality’s required claim procedure.
2. Gather proof of your interest: recorded deed, mortgage, assignment, judgment lien documentation, photo ID, Social Security number or EIN for payment, and, if applicable, probate documents for a deceased owner.
3. Prepare a written claim including your name, contact information, the property address, the tax sale date (if known), the amount you claim, and a clear statement of why you are entitled to the funds. Attach supporting documents and notarize if required.
4. File the claim with the municipal office by certified mail or in person and obtain a dated receipt or stamped copy.
5. If the municipality denies the claim or multiple claimants exist, consider whether an interpleader, quiet-title action, or declaratory judgment in Superior Court is appropriate to determine distribution.

What to do if the claim is contested or the municipality refuses to pay

If the municipality refuses to pay your claim because another party has a competing claim, the municipality may either:

• require the parties to resolve the dispute among themselves; or
• deposit the funds with the court (or ask a court to accept the funds) and ask the court to determine the rightful recipients (an interpleader or similar proceeding).

If the municipality refuses to recognize your valid claim and will not pursue a neutral deposit with the court, you may need to bring a civil action in New Hampshire Superior Court asking the court to order the municipality to pay the funds to you. During any contested proceeding, keep careful records of all communications and filings.

Helpful hints

• Contact the town or city tax collector as soon as possible — they are the starting point for any surplus claim.
• Perform a title and lien search before filing a claim to identify other potential claimants and prioritize expectations.
• Keep clear documentation: certified mail receipts, copies of claims and attachments, proof of identity, and records of any payments or liens.
• If the former owner is deceased, locate probate or estate documents (letters testamentary or administration) before filing a claim.
• Be prepared to show the chain of title or assignment if you are a mortgagee or assignee claiming the surplus.
• If multiple claimants exist, consider negotiating a distribution settlement before resorting to court — litigation is often costlier than the amount in dispute.
• Ask the municipality whether it requires an affidavit of non-liability from the claimant or a municipal form; many towns have standard processes.
• Consider consulting a lawyer experienced in New Hampshire tax sale and real estate law if the amount is significant or the claim is contested. An attorney can advise on whether a court filing is necessary and can prepare an interpleader or claim action correctly.