What the surplus (overage) is and who can claim it

When a property is sold for unpaid property taxes, the sale may bring in more money than the tax lien, interest, and sale expenses. That extra money is called surplus, overage, or overbid funds. Iowa law treats those funds as belonging to prioritized claimants in this general order: (1) the former owner(s) of record, (2) lienholders and judgment creditors with recorded interests that predate the sale, and (3) any other lawful claimants. If the owner died before you begin, the estate or heirs must provide proof of entitlement.

Step-by-step process to claim surplus funds in Iowa

1. Confirm whether a surplus exists. Contact the county treasurer and the county recorder (or auditor) where the property is located. Ask for a written accounting of the tax sale that shows the sale price, the taxes/interest/costs satisfied, and the amount (if any) remaining as surplus.
2. Collect proof that you are entitled to the money. Typical documents the county will want include: a government ID, the recorded deed or chain of title showing former ownership, a certified copy of the death certificate if the owner is deceased, probate documents or letters testamentary/administration if the estate was opened, and any recorded liens or mortgage payoff statements. If you are an heir, bring documents that show your right to inherit (will, small estate affidavit, or court order).
3. File a written claim with the county. Some counties will have a form; others accept a signed, notarized, verified written claim that sets out your basis for seeking the surplus and attaches your supporting documents. Deliver the claim to the county treasurer and keep certified copies. Ask the treasurer how they handle surplus distributions and whether there is a formal deadline or additional paperwork required.
4. If the county denies the claim or won’t act, file a court petition. If the county refuses to release funds or a dispute arises between competing claimants, the usual next step is to file a petition in Iowa district court asking for a determination of who is entitled to the surplus and an order directing the county to pay the funds. The petition typically asks the court to quiet title to the surplus or to order distribution to one or more claimants. The Iowa Judicial Branch website can help you locate forms and filing instructions: https://www.iowacourts.gov/
5. Expect proofs and possible hearings. The county or other claimants may request more documents or ask the court to hold a hearing. Be ready to present chain-of-title documents, probate papers, and identity verification. If you are representing the decedent’s estate, you may need letters of administration or a court order authorizing you to claim assets on behalf of the estate.
6. Get paid after final determination. Once the county has a final written determination (either by agreement, by the treasurer’s approval, or by court order), the county treasurer or clerk will typically issue a check to the person(s) the county is required to pay.

Timing and deadlines — act quickly

Time matters. Some counties and statutes impose filing windows or notice requirements for surplus claims. If you wait too long, a county may take other steps with unclaimed funds (for example, retaining them, offsetting them against other liens, or — in some circumstances — transferring unclaimed funds to another governmental account). Contact the county treasurer immediately to learn local timelines.

For statutory text and to research applicable Iowa law, visit the Iowa Code and search for chapters on tax sales and real property: https://www.legis.iowa.gov/ and consult the Iowa Judicial Branch for filing procedures: https://www.iowacourts.gov/.

Special notes when the former owner is deceased

If the property belonged to your mother and she is deceased, these additional points matter:

• If the estate went through probate, the personal representative (executor or administrator) is usually the proper person to claim the surplus for the estate.
• If the estate was never opened and the amount is small, a small‑estate affidavit or other simplified procedure might suffice in some counties. The county or a court can tell you whether a small‑estate process will work.
• If you are an heir but not the personal representative, you may still be able to claim funds with evidence of your legal right to inherit (will, heirship affidavit, or court order).

When to hire an attorney

Consider getting a lawyer if:

• the county refuses your claim and you need to file a court petition;
• there are competing claimants (multiple lienholders, contested heirs, or disputes over title);
• you need help proving heirship or navigating probate; or
• the paperwork or deadlines are complex in your county.

An attorney who handles tax sales, real property, or probate and estates can review the documents, prepare a petition if needed, and represent you at any hearing.

Helpful Hints

• Start with the county treasurer and county recorder: they can usually tell you whether a surplus exists and what local forms or steps to follow.
• Gather primary documents early: recorded deed, sale document, death certificate, probate papers, IDs, and any mortgage or lien documents.
• If the owner is deceased, bring certified copies of the death certificate and any probate or small‑estate paperwork.
• Keep certified copies of everything you file with the county and get written receipts for submitted claims.
• Watch out for scams: only submit documents and claims to official county offices or through counsel you trust. Do not pay upfront to an unknown third party promising to recover surplus funds without a written retainer and clear terms.
• If the county directs you to the Iowa district court, use the Iowa Judicial Branch site for local filing rules and contact information: https://www.iowacourts.gov/
• When researching statutes, start at the Iowa Legislature website: https://www.legis.iowa.gov/ and search terms like “tax sale,” “forfeiture and sale,” or “disposition of funds.”