Georgia tax sale excess funds

This is a general summary of Georgia law for orientation, not legal advice. Statutes are amended and every property has its own facts, so read the current code section and talk to a Georgia attorney before bidding, redeeming or claiming funds.

What excess funds are

At a tax sale the opening bid is the amount on the tax execution: the delinquent taxes plus interest, penalties and the costs of levy and sale. Bidding often goes higher, sometimes much higher, because the bidders are competing for the property or for the 20% redemption premium. Everything paid above the amount owed is the excess funds (also called surplus or overage). The purchaser does not get it back, and the county does not keep it, at least not at first. The officer who ran the sale holds it for the people who had an interest in the property, as O.C.G.A. § 48-4-5 directs.

Who may claim: § 48-4-5

O.C.G.A. § 48-4-5(a) requires the officer selling the property to give written notice of any excess funds to:

• the record owner of the property at the time of the tax sale;
• the record holder of each security deed affecting the property; and
• all other parties with a recorded equity interest or claim in the property at the time of the sale.

The notice goes by first-class mail to the addresses in the county's records, and it tells each party that the funds exist and may be claimed. The funds are then distributed to the interested parties, including the owner, as their interests appear and in the order of their priority (§ 48-4-5(b)). A first mortgage lender, for example, is normally paid before the owner. If the officer cannot tell who is entitled, or claimants disagree, the officer can pay the money into the superior court through an interpleader action, and the court sorts out the claims; the officer's costs and reasonable attorney's fees for that action come out of the funds (§ 48-4-5(b)).

Two points often surprise people. First, the redemption of the property does not erase the claim: the excess funds belong to those with interests at the time of the sale, whatever happens to the property afterwards. Second, the tax deed purchaser is not an interested party for this purpose and has no claim on the surplus. Excess funds that go unclaimed are eventually turned over to the county's governing authority; a county's tax commissioner usually states the deadline and the procedure on its own site.

How to claim

1. Find the sale. Confirm the parcel, the sale date and the amount bid. The county's tax sale results and its excess funds list (below) show this.
2. Prove your interest. The claim form asks for the recorded deed, security deed or lien that gave you an interest on the sale date, a government ID, and usually a notarized affidavit. Heirs need estate paperwork.
3. File with the right office. In most counties that is the tax commissioner; in Fulton County, where the sheriff conducts the sale, it is the Sheriff's Office. Some counties have moved all excess funds into the superior court clerk's registry and require a court petition.
4. Expect a priority review. The office checks for lienholders ahead of you before paying. Where claims conflict, be ready for an interpleader in superior court.
5. Be careful with "recovery" offers. Third parties who find owners and offer to collect the funds for a large percentage are common. You can claim directly from the county for free, and Georgia law limits some of these arrangements; talk to a Georgia attorney before signing anything.

Where the metro counties publish their lists

Each county keeps its own list of unclaimed excess funds, usually as a PDF on the tax commissioner's or sheriff's site, next to the tax sale list. These are the counties whose tax sale lists Georgia Signals reads every morning; each link is the county's own tax sale page, where the excess funds list and claim form are posted or linked.

• Fulton County: Fulton County Sheriff's Office tax / levy sale · Fulton County sale page
• Cobb County: Cobb County Tax Commissioner tax sale · Cobb County sale page
• DeKalb County: DeKalb County Tax Commissioner tax sale · DeKalb County sale page
• Gwinnett County: Gwinnett County Tax Commissioner tax sale · Gwinnett County sale page
• Muscogee County: Columbus-Muscogee Tax Commissioner tax sale · Muscogee County sale page
• Chatham County: Chatham County Tax Commissioner tax sale · Chatham County sale page
• Clayton County: Clayton County Tax Commissioner tax sale · Clayton County sale page

For every other county, the county page links the tax commissioner's site and the Georgia Department of Revenue's county property tax facts page, which lists the office's phone and address.

Where to check the law

O.C.G.A. § 48-4-5 is the excess funds section; the redemption sections (§ 48-4-40 and following) explain why a redeemed property still leaves excess funds behind. Read the official code through the Georgia General Assembly or the free text on Justia; the Georgia Department of Revenue lists every county tax office. Related guides: how Georgia tax sales work and the redemption period.

Frequently asked questions

What are excess funds from a Georgia tax sale?

The money left over when a property sells at a tax sale for more than the taxes, interest, penalties and costs owed on it. Under O.C.G.A. § 48-4-5 the officer who conducted the sale holds that surplus for the people who had an interest in the property, not for the purchaser and not for the county.

Who can claim excess funds in Georgia?

The record owner at the time of the sale, the holder of any security deed on the property, and anyone else with a recorded equity interest or claim, in order of their priority. If the claims conflict, the funds are paid into the superior court and the court decides.

How long do I have to claim excess funds?

O.C.G.A. § 48-4-5 requires the officer to send written notice of the excess funds to the owner and recorded interest holders. Unclaimed funds are eventually paid over to the county; the county's tax commissioner lists what is still held and the procedure to claim it. Act as soon as you learn of the sale.