The 120-Day Rule for Tax Deed Surplus Funds: What It Means and Why It Matters

This post explains what the 120-day rule is, who it affects, and what you must do to protect your rights before time runs out.

The 120-Day Rule for Tax Deed Surplus Funds: What It Means and Why It Matters

If your property in Florida was sold at a tax deed auction, and the sale brought in more than what was owed in back taxes and fees, you may be owed money — known as surplus funds. But here’s the catch:

Under Florida Statute 197.582(3), you only have 120 days to claim that money before it’s handed over to the state.

This post explains what the 120-day rule is, who it affects, and what you must do to protect your rights before time runs out.

What Are Tax Deed Surplus Funds?

When a Florida property is sold due to unpaid property taxes, the county tax collector auctions the property at a tax deed sale.
If the winning bid is more than what was owed, the extra money — the surplus — is held by the Clerk of Court and may be claimed by:

• The former owner of the property

• Heirs if the owner is deceased

• Lienholders with a legal interest

But those funds don’t stay there forever.

What the Law Says: Florida Statute §197.582(3)

This law states:

“Surplus funds shall be held by the clerk for the benefit of persons described in subsection (1). If the clerk does not receive a claim within 120 days... the clerk shall remit the unclaimed surplus to the state.”

In plain terms:

• You have 120 calendar days from the date the Clerk issues the Notice of Surplus to file a valid claim.

• If no one claims it within that window, the money is sent to the Florida Department of Financial Services as unclaimed property.

• After that, the process becomes much more difficult — and much slower.

Who Does the 120-Day Rule Apply To?

• Former homeowners whose property was sold at a tax deed sale

• Heirs of deceased owners (must often open probate to claim)

• Creditors or lienholders with recorded claims on the property

If you fall into any of these categories and the sale was recent, the clock is ticking.

What Happens After the 120 Days?

If no one submits a valid claim within 120 days:

1. The Clerk closes the claim period

2. The funds are sent to the Florida Bureau of Unclaimed Property

3. You must now go through the state’s unclaimed property system to recover the money

While this option still exists, it takes longer and requires more documentation. In some cases, it may be more difficult for heirs — especially if no probate has been filed.

What If You Missed the Notice?

Not every homeowner receives the surplus notice in time — especially if:

• You moved after the foreclosure or tax deed sale

• The county had an outdated address

• You didn’t check court records regularly

That’s why it’s critical to search the Clerk’s records or contact a surplus recovery specialist, even if you never got a letter.

How to File a Claim Before the 120-Day Deadline

1. Search the county Clerk’s website or call the Tax Deed Department

2. Ask if there’s a surplus on your case

3. Request the claim form and complete it fully

4. Include proof of ownership, ID, and supporting documents

5. Get the form notarized (required in most counties)

6. Submit it before the 120-day window expires

Need Help Meeting the Deadline?

At Visionary Surplus Recovery, we specialize in:

• Locating unclaimed surplus funds fast

• Preparing and submitting complete, valid claims

• Working with attorneys to file probate for heirs

• Protecting your rights and keeping your claim on track

We don’t charge upfront — and we only get paid if we recover the money for you.

📞 Time’s Running Out? Let Us Handle the Deadline for You
👉 Start a Free Case Review

Disclaimer: This blog is for informational purposes only and does not constitute legal advice. Please consult a licensed Florida attorney for legal guidance related to surplus funds or probate.