Detailed Answer
When a property sells for more than the amount owed in back taxes, interest, and costs, North Carolina law designates those excess proceeds as surplus funds. Recovering these funds requires you to follow a defined process under state statutes. Here’s what you need to know:
1. Statutory Framework
North Carolina General Statute § 105-374 governs surplus from tax foreclosure sales. After a successful sale, the register of deeds deposits the surplus with the county finance office. The finance office then publishes a notice of the available funds once a week for three consecutive weeks in a newspaper of general circulation.
Relevant statute: G.S. 105-374.
2. Timeline
- Within 10–30 days of the foreclosure sale, the register notifies the finance office and deposits excess proceeds.
- The finance office publishes notice weekly for three weeks.
- You have 90 days from the date of the first published notice to submit your written claim.
- If you miss the 90-day window, unclaimed funds generally revert to the county treasury.
3. Required Documentation
Your verified written claim should include:
- Claimant’s full name and address.
- Description of the property sold.
- Proof of your interest or ownership (deed copies, tax receipts).
- Calculation showing the amount you believe is due.
4. Fees and Costs
North Carolina law does not set a flat application fee for surplus claims, but you should plan for:
- Publication costs: approximately $50–$100, dependent on newspaper rates.
- Clerk or finance office administrative fees: often $25–$50.
- Copy charges: typically $2–$5 per certified page.
Total out-of-pocket expenses generally range from $75 to $150. Contact your local register of deeds or finance office for precise figures.
Key Steps to Recover Surplus Funds
- Monitor Public Notices: Note the dates of the three weekly publications.
- Gather Records: Collect deeds, tax bills, and any proof of ownership or payment.
- Prepare Your Claim: Complete a written application with all required attachments.
- Submit on Time: File your verified claim with the county finance office within 90 days of the first notice.
- Follow Up: Confirm acceptance and processing. The office will issue a check once approved.
If you encounter questions or need assistance preparing your claim, having knowledgeable legal support can streamline the process and protect your rights.
Pierce Law Group attorneys have extensive experience handling surplus-fund claims under North Carolina law. We can help you gather documentation, meet deadlines, and communicate effectively with the register of deeds and finance office. To discuss your situation, contact us today:
Email: intake@piercelaw.com
Phone: (919) 341-7055
