California surplus funds
Money left over from foreclosure and tax sales in California: who it belongs to, the deadlines, and how former owners claim it.
How surplus funds work in California
In California, money left over when a county sells tax-defaulted property is held by the county treasurer-tax collector. Former owners and lienholders have one year after the tax deed is recorded to claim it. Whatever isn't claimed may be transferred to the county's general fund, after the county deducts its costs.
How excess proceeds are handled
- Notice: when the excess is more than $150, the county must mail notice of the right to claim to the parties of interest within 90 days of the sale. If it can't find an address, it publishes the notice in a local newspaper for three weeks.
- The county's costs come out first. The cost of finding parties and sending or publishing notices is deducted from the excess.
- Deadline: a claim must be postmarked on or before the date one year after the tax collector's deed to the buyer was recorded.
- Payment comes after the year ends. The board of supervisors (or an officer it delegates) decides the claims no sooner than one year after the deed is recorded, and pays them in order of priority.
Who is paid, in order
- Lienholders of record before the tax deed was recorded, in order of priority, such as a mortgage lender.
- Anyone with title of record to the property before the tax deed was recorded: the former owners.
If an owner has died, their heirs may use a small estate affidavit under the Probate Code to support the claim. Anyone who disagrees with the county's decision has 90 days to go to court.
Rules for anyone who helps
Section 4675 doesn't cap what a helper may charge, but it requires openness:
- Anyone filing on an owner's behalf must prove the owner was told the amount and source of the money, and that they can claim it directly from the county at no cost.
- An owner's right to claim can be signed over only in a dated, written document that explicitly says so, after both sides have shared everything they know about what it's worth. Any other assignment has no effect.
What to do
- If your California property was sold at a county tax sale, call the county treasurer-tax collector and ask whether excess proceeds are held, how much, and the date the tax deed was recorded.
- Claiming it yourself costs nothing. Ask the county for its claim form.
- Don't wait. The claim must be postmarked within one year of the deed being recorded.
Our free California claim kit walks through each step, with every county tax collector's phone number.
Based on Rev. & Tax. Code § 4675, claims for excess proceeds, Rev. & Tax. Code § 4676, notice and State Controller's Excess Proceeds Guide, reviewed November 2, 2026. This is general information, not legal advice.