Recovering Surplus Proceeds After a Tax Sale in West Virginia

Disclaimer: This is educational information only and not legal advice. Laws change and every case is different. Consult a West Virginia attorney or the county officials listed below for guidance specific to your situation.

Detailed Answer

When a county sells property for unpaid property taxes, the sale can produce proceeds that exceed the amounts needed to pay the taxes, penalties, interest, fees, and any prior costs. Those extra funds are called “surplus proceeds” or simply “surplus.” West Virginia law and local practice determine who can claim that surplus and how to get it back. The general process is:

1. Confirm there is a surplus.

   First, contact the county treasurer, sheriff, or county clerk where the tax sale occurred. Ask whether the tax sale produced surplus proceeds and whether the county is holding those funds or has disbursed them to a purchaser. County offices maintain sale records and can confirm the exact amount available.

2. Learn the priority of claims.

   Generally, surplus funds are distributed in the following priority order: (1) claims of lienholders or other creditors who recorded valid liens before the sale and who are entitled to distribution under applicable law; (2) the former owner of the property for any remaining balance. Priority rules depend on the types and dates of recorded liens and applicable statutes. Because priorities can be technical, review recorded documents (deeds, mortgages, judgments) and consult county records.

3. Locate and gather documentation.

   A successful claim will usually require proof of identity and legal interest in the property or lien. Typical documents include a government ID, deed or title documents showing ownership at the time of the tax delinquency, mortgage or lien documents, and any instruments that show assignment of a lien. Bring certified copies if available.

4. File a written claim with the county.

   Most counties require a written application or claim form. The claim should state your relationship to the property (former owner, mortgagee, judgment creditor, assignee) and include supporting documents and a certificate of service or proof that all required notices were given. Contact the county clerk or treasurer for the county’s exact procedure and any required forms.

5. If the county rejects or disputes the claim, pursue judicial relief.

   If the county declines to release the surplus, or multiple claimants dispute entitlement, the usual next step is to file a claim in the appropriate West Virginia court (often the circuit court in the county where the property is located). A court can resolve competing claims and order distribution of the funds. An attorney can help prepare and file the necessary pleadings and present evidence.

6. Be aware of time limits and escheat rules.

   Each jurisdiction has time limits for asserting claims, and unclaimed surplus funds may ultimately be transferred to county or state unclaimed property holdings if not claimed. Check with the county office promptly and, if funds remain unclaimed for a long period, search the West Virginia State Treasurer’s unclaimed property database.

Where to look up West Virginia law and county procedures

Relevant state-level law on taxation and tax sales is found in West Virginia’s tax statutes. For the official statutory text, see West Virginia Code, Title 11 (Taxation): https://code.wvlegislature.gov/title/11/. For administrative and county-specific information, contact the county treasurer, sheriff, or county clerk where the property is located. For unclaimed funds that may have been turned over to the state, see the West Virginia State Treasurer’s Unclaimed Property page: https://treasury.wv.gov/Unclaimed-Property/Pages/default.aspx.

Common Practical Steps (Checklist)

• Call the county treasurer or clerk and ask whether surplus proceeds exist and how to claim them.
• Request a certified copy of the tax sale record, sale docket, and any accounting of proceeds.
• Gather proof of ownership or lien priority (deeds, mortgages, assignments, judgments).
• Complete any county claim form and attach supporting documents and ID.
• If multiple claimants exist, consider hiring an attorney to protect your rights and present evidence in court.
• If the county reports no current surplus but you believe funds were paid, check the State Treasurer’s unclaimed property database.

Helpful Hints

• Act quickly. Although exact deadlines vary, claiming surplus early avoids problems with statute-of-limitations and administrative escheat rules.
• Keep all records. Tax sale paperwork, notices, and communications with county offices are critical evidence when asserting a claim.
• Check recorded liens carefully. A mortgage or junior lien recorded before the tax sale may have a priority claim to surplus proceeds.
• If you’re the former owner, provide documentation showing ownership at the time of delinquency. If you sold or assigned rights, provide the assignment documents.
• Contact the county court clerk or a local attorney before initiating court actions. Court rules and local practice differ by county.
• Search the West Virginia Treasurer’s unclaimed property site if the county says funds are unclaimed or were transferred to the state.

When to Get Legal Help

Consider hiring a West Virginia attorney if: (a) multiple parties claim the surplus; (b) the county refuses your claim and you must file in court; (c) the distribution requires resolving lien priority questions; or (d) significant sums are involved. An attorney can preserve deadlines, prepare filings, and represent you in court.

For more information, contact the county treasurer or county clerk where the tax sale occurred, review West Virginia Code, Title 11 (Taxation) at the linked code website above, or contact the West Virginia State Treasurer’s Unclaimed Property office.

Final reminder: This article is informational only and not legal advice. For decisions that affect your rights, consult a licensed West Virginia attorney.