If you have received a notice from the Clerk of Court stating that you may be entitled to surplus funds from a Florida Tax Deed Sale, you might wonder how long you have to make a claim. Understanding your rights and the deadlines involved is crucial to ensuring you don’t miss out on funds that rightfully belong to you.
Understanding Florida’s Tax Deed Sale Surplus Process and timeframe
Under Florida law, if a property sells at a tax deed auction for more than the outstanding tax debt, the excess amount—known as surplus funds—must be distributed. According to Florida Statute 197.582(2)(a), the Clerk of Court will issue a Notice of Surplus Funds From Tax Deed Sale to any party that may have a claim to those funds.
- 120-Day Rule for Lienholders: Florida Statute 197.582(3) states that lienholders have 120 days from the date of the notice to file a claim. If they miss this deadline, they are permanently barred from recovering any of the surplus funds. This strict deadline protects property owners from excessive claims by creditors and ensures that rightful owners have priority.
- Property Owners & Heirs Have More Time: Unlike lienholders, former property owners and their heirs have a much longer timeframe—essentially unlimited—to claim their funds. However, this does not mean the Clerk of Court will hold the money forever. Typically, surplus funds are held for one year by the Clerk, after which they are transferred to the Florida Chief Financial Officer’s Unclaimed Property Fund, where they can still be claimed but may require a more complicated process.
How Florida Compares to Ohio and Georgia
Each state has its own rules regarding tax deed surplus funds:
- Ohio: The process is similar, but the timeframe is different. In Ohio, surplus funds from tax foreclosures are typically held by the county treasurer and must be claimed within three years before being forfeited to the state.
- Georgia: Georgia law allows previous property owners to claim surplus funds within five years before they are transferred to the state treasury as unclaimed property. Unlike Florida, Georgia requires lienholders to actively pursue their claims in court within a strict window after the auction.
Beware of Scammers & Unethical Recovery Companies
While tax deed surplus funds are rightfully yours, many so-called “fund recovery specialists” or “money finders” may attempt to deceive homeowners by charging excessive fees or falsely claiming they can get your money faster than anyone else. Here’s how to protect yourself:
- Be Wary of Urgency Tactics: Some companies may pressure you to sign contracts immediately, falsely claiming that your surplus funds will disappear if you don’t act fast.
- Avoid Paying Large Upfront Fees: Legitimate attorneys or professionals work on a contingency basis, meaning they only get paid if you recover funds.
- You Do Not Need a Third-Party Firm: Even anyone can claim surplus funds directly from the Clerk of Court, it could be confusing and that’s why InvestaHaus provides the solution with a partner attorney to mitigate any problem with the county or state.
What Should You Do Next?
If you or a deceased family member lost a property to a tax deed sale in Florida, Ohio, or Georgia, you may still have time to recover surplus funds. At Investahaus, we believe in full transparency and homeowner empowerment. If you’re unsure of your next steps, reach out for a free consultation. We’ll guide you through the process, ensuring you receive the maximum amount possible—without falling victim to predatory tactics.
Remember, these funds belong to you. Don’t let them slip away!
frequently asked questions?
Is there a limit on what these companies can charge?
Yes. Fees and costs are limited to a total maximum of up to 30%. Fees among “claimant’s representatives” can and do vary widely, so you are encouraged to weigh all available options before making any decision regarding the recovery of your funds.
I was told if I didn’t act quickly, I could lose the right to claim my money. Is that true?
It is not true. There is no statute of limitations on unclaimed property in Florida. Account owners or their heirs can claim their funds indefinitely. This type of misrepresentation activity should be reported to us.
I received notice from a company that for a fee they will tell me if I have unclaimed money. Should I send them $ or provide credit card information?
No. You should not pay anyone any amount of money to do that. This type of activity should be reported. After getting your money, they will usually just refer you to this same website and/or the websites of other states’ unclaimed property programs, which you can already search as much as you want for free. Click here to search Florida’s unclaimed property database. Click here for links to other states’ unclaimed property programs.