Short Answer

In North Carolina, surplus money left after a tax foreclosure sale is held by the Clerk of Superior Court. To get it, file in the original tax foreclosure case a verified claim (often called a Motion or Petition for Disbursement of Surplus Proceeds) with an affidavit proving your right to the funds and serve any junior lienholders. The clerk may set a hearing and will distribute by legal priority; if uncontested and documentation is complete, many clerks enter an order and issue the check.

Understanding the Problem

You want to know how, in North Carolina, you can complete and e-file the surplus funds claim form so the Clerk of Superior Court releases your check from a tax foreclosure sale. You are the former owner, there are court-ordered surplus funds, the clerk requires a specific claim filing in the tax foreclosure case, and you cannot appear in person and need to file online.

Apply the Law

Under North Carolina law, when a tax foreclosure sale brings in more than the taxes, interest, penalties, and costs, the “surplus” is deposited with the Clerk of Superior Court in the foreclosure case. The clerk disburses that surplus by legal priority: first to any lienholders entitled by law, and any balance to the owner entitled to receive it. The request is made by a filed, verified claim or motion in the foreclosure case, with notice to interested parties. The clerk may decide the matter on the filings or hold a short hearing and enter a written order directing payment.

Key Requirements

• Identify the correct case and the surplus: Use the tax foreclosure case number, confirm the sale is final (after the upset-bid period) and that surplus funds are on deposit with the clerk.
• Standing to claim: Show you are the person entitled to surplus (typically the former owner unless junior liens have priority), or that you hold a valid assignment.
• Liens and notice: List junior liens of record as of the sale date and serve them with your claim; if you find none, state your due diligence search in your affidavit.
• Verified claim package: File a signed and notarized claim or motion with an affidavit, attach government ID and a completed IRS Form W-9, and include your mailing address for payment.
• Order and possible hearing: Submit a proposed order for the clerk to sign; the clerk may set a brief hearing before entering a written order.

What the Statutes Say

• North Carolina Gen. Stat. § 105-374 (Foreclosure by civil action) – Provides for court-ordered foreclosure of tax liens and distribution of sale proceeds, with surplus held for those entitled.
• North Carolina Gen. Stat. § 105-375 (In rem foreclosure) – Establishes in rem foreclosure, sale, and application of proceeds; surplus is paid out to parties in interest.
• North Carolina Gen. Stat. § 116B-53 (Unclaimed property; dormancy periods) – Property held by a court may be deemed abandoned after a period and sent to the State Treasurer if unclaimed.

Analysis

Apply the Rule to the Facts: You have a court-confirmed surplus in a North Carolina tax foreclosure case and cannot appear in person. You can file a verified claim in that case to request disbursement, attach your ID and W-9, and explain your ownership and lien search in an affidavit. Because attorney due diligence may be costly, your own lien search and proper service on any listed lienholders reduces the risk of delay and helps the clerk enter an order paying you any amount left after higher-priority liens, if any.

Process & Timing

1. Who files: Former owner or assignee of surplus rights. Where: Clerk of Superior Court in the original tax foreclosure case in the North Carolina county where the property was foreclosed. What: A verified “Motion/Petition for Disbursement of Surplus Proceeds” (or the county’s surplus claim form), your notarized affidavit, photo ID, and IRS Form W‑9. When: After the 10‑day upset‑bid period ends and the sale is confirmed, and the surplus is deposited with the clerk.
2. Serve all parties in interest shown in the foreclosure file and any junior lienholders you identified from register of deeds and court indexes. File a certificate of service. The clerk may set a hearing; scheduling varies by county, often a few weeks from filing if contested, sooner if uncontested.
3. The clerk enters a written order directing payment by legal priority. If uncontested and complete, the clerk may sign your proposed order. The check is issued by the clerk’s office or mailed to the address you provided.

Exceptions & Pitfalls

• Junior liens may take priority over the owner’s claim; the clerk must pay valid lienholders before releasing any remainder to you.
• If you previously assigned your surplus rights, you may not be the proper claimant; attach any assignment to show standing.
• Failure to serve interested parties or incomplete affidavits can delay or defeat your claim; include your lien search steps and proof of service.
• Name mismatches (e.g., prior or hyphenated names) require explanation and documentation to confirm identity.
• E‑filing depends on whether your county uses eCourts/Odyssey eFileNC; if not available, file by mail with notarized originals and request a remote hearing if needed.

Talk to a Surplus Funds Attorney

If you’re dealing with a tax sale surplus and need help preparing and e‑filing your claim, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at (919) 341-7055.

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.