Possibly. If the auction brings in more than the taxes and costs owed, the surplus is held by the clerk and paid to the former owner and certain lienholders. Claim windows are limited, so act fast.
Possibly. In Florida, if a tax deed auction brings in more than what is owed, the extra, called surplus, does not go to the county. It is held and paid out to the former owner and certain lienholders, after the taxes and costs are paid.
How surplus works
The statutory bid includes certificate amounts, taxes, interest and sale costs. Some homestead sales also include a statutory additional amount; the clerk determines how that amount is treated for surplus.
The clerk calculates any distributable surplus under section 197.582; it is not always simply the winning bid minus the announced opening bid.
The clerk holds it and handles claims under Florida law. Government liens and certain other lienholders may be paid before you.
How to claim it
Find out whether a surplus exists. Check the county clerk’s tax deed records.
File a claim with the clerk using their process and by their deadline.
Provide proof you were the owner, such as ID, your deed, and anything else the clerk requests.
Claim windows are limited, and unclaimed money can eventually be turned over to the state as unclaimed property. Act as soon as you learn of the sale.
Be careful with surplus “finders”
Some companies offer to claim surplus for a fee. You can usually file directly with the clerk. If you use help, read the fee terms and have an attorney review them.
Sell first or wait?
If the house may bring a big surplus, selling before the auction on your own terms often puts more in your hands, and you control the price. If you wait for the auction, you cannot know the winning bid in advance.
What to do this week
Ask the clerk for the opening bid and the sale date. Then send me the address, and I will show you what the house might net on a sale versus what a surplus could look like.
General education, not legal, tax or investment advice. Discuss your circumstances with a licensed Florida attorney or tax professional. Yoganand Ganeshram PA, licensed Florida real estate agent with eXp Realty. Equal Housing Opportunity.
Source: Florida Statutes section 197.582. Priority, notices and claim deadlines differ by claimant; get the clerk’s written instructions.
Originally published on Equity Edge Orlando. Reviewed for this Substack edition.