06/26/2023
When a property owner fails to pay property taxes, the government may sell the property at a tax deed auction to recover the unpaid taxes.
In some cases, the winning bid at the auction exceeds the amount of taxes owed, creating a surplus. This surplus belongs to the previous property owner or other interested parties who may have a legal claim to it.
The process of fund recovery typically involves the following steps:
Notification: The government agency responsible for conducting the auction is typically required to notify the property owner and other interested parties about the existence of the surplus funds.
Claim Period: There is usually a designated period, often ranging from a few weeks to several months, during which the interested parties can submit a claim to the surplus funds.
Documentation and Verification: To claim the surplus funds, interested parties must provide supporting documentation and evidence of their legal right to the funds. This may involve proving ownership of the property at the time of the auction or demonstrating a valid lien or judgment against the property.
Distribution: Once the claims are received and verified, the government agency will distribute the surplus funds accordingly. The distribution order typically prioritizes the previous property owner, followed by other interested parties based on their legal rights and priority status.
It's important to note that the specific procedures for fund recovery may vary depending on the jurisdiction. It's advisable to engage our professionals to understand the specific rules and requirements for claiming surplus funds.
