When property taxes go unpaid in Florida, the county can eventually sell the property at a tax deed sale. Many people assume that is the end of the story. Often it is not. If the winning bid is higher than what was owed, the extra money is called surplus, and Florida law says what has to happen to it.
This guide walks through that process in plain English, based on the text of Florida Statutes section 197.582.
Step 1: The certificateholder and the county get paid first
The opening bid at a tax deed sale covers the unpaid taxes, the tax certificate, and the costs of the sale. The person holding the tax certificate is paid out of the sale proceeds first.
Anything above that amount is surplus. Before anyone else sees a dollar of it, the clerk uses the surplus to pay liens held by government units, such as other tax certificates that were not part of the sale and omitted taxes.
Step 2: The clerk holds the rest and mails a notice
If money is left after the government liens, the clerk keeps it for the people who had an interest in the property. That can include:
- mortgage holders and other lienholders
- the former owner, called the titleholder of record
The clerk mails each of them a Notice of Surplus Funds from Tax Deed Sale. The notice says the surplus will be held for 120 days, starting on the date of the notice. It also explains that, to the extent possible, senior mortgages and liens are paid in full before junior lienholders and before the former owner.
Step 3: The 120-day claim window
Anyone who receives the notice has 120 days from the date of the notice to file a written claim with the clerk. The statute includes a sample claim form. It asks whether you are a lienholder or a titleholder, what interest you held, and how much you are claiming. The form is signed and sworn before a notary public or a deputy clerk, and a copy of the clerk's notice is attached.
What happens if the 120 days pass
This is where the details matter, and where a lot of online advice gets it wrong.
- Lienholders and other non-owners who do not file in time are barred. The statute says their claims are forever barred.
- The former property owner is treated differently. Section 197.582(5) begins with the words "Except for claims by a property owner." The bar on late claims is written for everyone else.
If the clerk receives no claims at all during the 120 days, section 197.582(9) creates a conclusive presumption that the legal titleholder of record is entitled to the surplus. The clerk then processes the money under Florida's unclaimed property law, Chapter 717. In practice, that can mean a slower path through the state.
So filing within the 120 days is still the most direct route for an owner to be included when the clerk pays claims.
Step 4: The clerk pays, or asks a court to decide
Within 90 days after the claim period ends, the clerk either:
- pays the surplus based on the clerk's review of the claims and their priority, or
- files an interpleader action in circuit court if there are potentially conflicting claims, so a judge decides who gets what.
The clerk's fees and costs for reviewing claims come out of the surplus.
Questions to ask if you get a notice
- What is the date on the notice? The 120 days run from that date, not from the sale date.
- Are there mortgages or other liens on the property? Those can be paid ahead of the former owner.
- Did the owner pass away, or was the property held by more than one person? Heirs and co-owners can each have a stake, and the paperwork gets more involved.
- Has anyone already filed? Competing claims can push the money into court.
You can file on your own
You do not have to hire anyone to claim tax deed surplus. You can file directly with the clerk of court at no cost. Complicated claim? A Florida law firm can handle it for you, especially when there are heirs, competing liens, or an interpleader case.
Call (800) 583-0551 or start a free case review. No fee unless we recover money for you.
