What is the difference between foreclosure surplus and tax deed surplus in Florida?
Foreclosure surplus comes from a mortgage or other lien foreclosure. Florida foreclosures are judicial: the lender files a case in circuit court, the court enters a judgment, and the clerk sells the property at auction. If the winning bid is more than what the judgment requires to be paid, the clerk keeps the difference in the case file and shows it on a certificate of disbursements.
Tax deed surplus comes from unpaid property taxes. Florida sells tax certificates first, and the property itself is only auctioned later, when a certificate holder applies for a tax deed. If that tax deed sale brings in more than the opening bid and the government's liens, the clerk holds the surplus.
Same office, different statutes and different clocks. Here they are side by side.
| Mortgage foreclosure | Tax deed sale | |
|---|---|---|
| Who holds the surplus | Clerk of the Circuit Court, in the foreclosure case | Clerk of the Circuit Court (tax deed section) |
| Main statutes | Fla. Stat. §§ 45.031, 45.032, 45.033 | Fla. Stat. § 197.582 |
| Who gets paid first | Subordinate lienholders who filed on time, then the owner of record on the day the lis pendens was filed | Governmental liens, then other lienholders by priority, then the former owner |
| Claim window | Claimants other than the owner of record must file before the clerk reports the money as unclaimed, one year after the sale | 120 days from the clerk's notice; the statute exempts claims by the property owner |
| If nobody claims it | Sent to the state's unclaimed property program, where the owner can still claim it | Processed under the state's unclaimed property law, where the owner can still claim it |
| Do you need a lawyer? | No. The statute itself says so | Not for a straightforward claim on the clerk's form; conflicting claims can end in court |
Do I need an attorney to claim Florida foreclosure surplus?
No. Florida law makes the point in its own words. Any agreement that assigns your foreclosure surplus to someone else must include a statement that the owner does not need an attorney or other representative to recover surplus funds in a foreclosure (Fla. Stat. § 45.033). You can file a claim with the clerk in your own case.
An attorney earns their keep in a narrower set of cases. When a second mortgage holder, an HOA or another creditor also files a claim, the court sets an evidentiary hearing to decide who is entitled to what (§ 45.032). The same goes for a deceased owner, where heirs have to show who stands in the owner's place before the clerk or the state will pay. Outside those situations, the clerk's process is built for owners to use.
What does Florida require in a surplus assignment?
Some companies ask former owners to sign an assignment, which transfers your right to the surplus to them. Florida allows this for foreclosure surplus, but on strict terms set out in § 45.033. The assignment must be in writing and must:
- state that the owner does not need an attorney or other representative to recover surplus funds in a foreclosure;
- if it was signed after the sale, give the foreclosure sale price and the amount of the surplus;
- list every form of payment given for the rights to the property or the surplus;
- be filed with the court within 60 days after the clerk files the certificate of disbursements.
How long do I have to claim Florida surplus funds?
Foreclosure surplus: under § 45.032, surplus still with the clerk one year after the sale is presumed unclaimed and goes to the state's Division of Unclaimed Property. The cutoff in § 45.031 applies to claimants other than the owner of record, so the owner's claim survives the move. It just has to be made to the state instead of the clerk.
Tax deed surplus: the clerk mails a notice, and under § 197.582 people who receive it have 120 days to file a written claim. Late claims are barred "except for claims by a property owner." After that window the clerk processes the surplus under the state's unclaimed property law, and the former owner can still recover it there.
Waiting still costs you something. Money held by the state comes with different paperwork, and if you hire help at that stage, Florida limits who can be paid to file: a registered attorney, a licensed private investigator or a Florida CPA (§ 717.1400), using only the state's own agreement forms, with fees capped at 30% (§ 717.135). Claiming while the clerk still holds the money is simpler.
When does a Florida tax deed surplus exist?
Only after the tax deed sale. Before that, you can usually still keep the property: under Fla. Stat. § 197.472, a tax certificate can be redeemed any time after it is issued and before a tax deed is issued. The often-quoted "two years" is when a certificate holder may first apply for a tax deed (§ 197.502), not when your right to redeem ends.
If the deed sale has happened and the price was higher than the opening bid and the liens, the clerk holds a surplus and sends notice to the owner and the lienholders. That notice goes to the address in the records, which is often the property itself. If you moved, read why the notice may never have reached you.
How do I check for Florida surplus funds for free?
- Work out which kind of sale it was. A bank or mortgage company case points to a foreclosure; a tax certificate or tax deed application points to a tax deed sale.
- Call the Clerk of the Circuit Court in the county where the property sold. Give your name and the property address, or the case number, and ask whether surplus is being held and when it will be, or was, reported as unclaimed.
- Many Florida clerks post surplus lists and claim forms on their websites. Look for "surplus funds" or "tax deed surplus" on the clerk's own site.
- If more than a year has passed, search Florida Treasure Hunt, the state's free unclaimed property search.
- Prefer someone to check for you? Request a free review. If a claim needs an attorney, we bring in one licensed in Florida, with nothing upfront.
Keep reading
- State guides: Ohio surplus funds, Georgia excess funds, Florida surplus funds
- Got a Letter About Surplus Funds? How to Tell If It's Real
- Is Surplus Funds Recovery Legit? How to Tell the Real Thing From a Scam
- How Long Do I Have to Claim Surplus Funds After Foreclosure?
- Can I Claim Surplus Funds Myself, Without a Lawyer or Recovery Company?
Sources
- Fla. Stat. § 45.031, Judicial sales procedure
- Fla. Stat. § 45.032, Disbursement of surplus funds after judicial sale
- Fla. Stat. § 45.033, Sale or assignment of rights to surplus funds
- Fla. Stat. § 197.582, Disbursement of proceeds of tax deed sale
- Fla. Stat. § 197.472, Redemption of tax certificates
- Fla. Stat. § 197.502, Application for obtaining tax deed
- Fla. Stat. § 717.135, Recovery agreements and purchase agreements
- Fla. Stat. § 717.1400, Registration of claimant representatives
- Florida Treasure Hunt, the state's free unclaimed property search