In short: When property sells at a Florida tax deed auction for more than the opening bid, the extra money is surplus. Under § 197.582, the clerk pays government liens first, then notifies lienholders and former owners, who have 120 days to file a sworn claim. Missing the deadline can forfeit the claim, and surplus-recovery companies are watching.
Where surplus comes from
Unpaid property taxes lead to tax certificates, and eventually a certificate holder can apply for a tax deed. At the sale, the opening bid covers the certificates, taxes, interest and costs. Anything bid above that is surplus (§ 197.582(2)). The certificate holder is repaid first, with interest (§ 197.582(1)).
Surplus can be large when a home with little or no mortgage is lost over a small tax debt. It belongs to the people who had interests in the property, not to the county.
Who gets paid, and in what order
The clerk pays governmental units’ liens of record first, then holds the balance for lienholders and titleholders, and mails each a notice with a claim form (§ 197.582(2)). Governmental lienholders must also request disbursement within 120 days and are paid before nongovernmental claimants (§ 197.582(7)).
Valid liens, such as mortgages and judgment liens, are paid before the former owner receives anything (§ 197.582(3)). Within 90 days after the claim period, the clerk either files an interpleader in circuit court when claims conflict or pays by priority (§ 197.582(6)).
The 120-day deadline
Claimants have 120 days from the notice to file a written, sworn claim. Lienholders must describe their liens and amounts; titleholders must describe their title, the amount claimed and any homestead claim (§ 197.582(3)). Mailed claims are filed on the postmark date (§ 197.582(4)).
Except for the property owner, a late claim is barred and the interest is waived (§ 197.582(5)). If no one files, the record titleholder is conclusively presumed entitled, and the clerk handles the money as unclaimed property under chapter 717 (§ 197.582(9)). The statute was most recently amended by ch. 2026-174.
The appeal on the channel
Branum v. Frank (2d DCA, No. 2D17-3706, decided Feb. 8, 2019) was an appeal against the Hillsborough County Clerk; a companion case, Martinez v. Frank (No. 2D17-4817), was decided five days later. According to the video, the issue was who gets tax deed surplus. Both were affirmed without opinion, so they set no precedent and the facts come from the video and docket.
Lessons
- If you lose property at a tax deed sale, watch your mail and file a sworn claim within 120 days.
- Mortgage and judgment lienholders get paid before former owners, so the owner’s share may be smaller than the surplus.
- Be cautious with surplus-recovery companies offering to file for a large percentage; the claim form is often straightforward.
- Heirs of a deceased owner may need probate or a court order to claim surplus.
Source: Fla. Stat. § 197.582, Disbursement of proceeds of sale
Watch the Oral Argument
This is the recording of the oral argument. The decision is a PCA, so the argument is context, not the court’s reasoning.
Tax Deed Surplus Funds: Who Gets the Money? | Branum v. Frank, 2D17-3706
Go Deeper
- “Less and Except” Means Not Yours: Deed Carve-Outs and Tax Deeds (Garden State v. Shazbop)
- When Your Teenager Accepts the Summons: Default in a Partition Case (Tan v. Hua)
- Tax Deed Sale Reversed Over Failed Notice and a Refused Bid (Horne v. Miami-Dade County)
Frequently Asked Questions
What is tax deed surplus in Florida?
Money from a tax deed sale above the opening bid, after the certificate holder is repaid, held by the clerk for lienholders and former owners.
How long do I have to claim tax deed surplus?
120 days from the clerk’s notice under § 197.582. Non-owners who miss it are barred.
Who gets paid first from tax deed surplus?
Governmental liens, then other valid liens by priority, then the former titleholder.
What if nobody claims the surplus?
The record titleholder is presumed entitled, and the funds go through the unclaimed property process in chapter 717.
Talk to a Florida real estate litigation lawyer
Weidner Law, P.A. handles Florida real estate, landlord-tenant, condominium and property disputes from St. Petersburg. If you need a real estate litigation lawyer, call (727) 954-8752 or email weidner@mattweidnerlaw.com.
Read the law yourself, free: the full Florida Statutes and court rules are on floridarules.net.
This article is general information about Florida law, not legal advice about your situation. Reading it, watching the videos, or contacting the firm does not create an attorney-client relationship. Every case turns on its own facts, and past results do not guarantee a similar outcome. The hiring of a lawyer is an important decision that should not be based solely upon advertisements.
