Detailed answer — overview of the process

When real property is sold at a delinquent tax sale, the county sells the property to satisfy unpaid property taxes, interest, penalties, and sale costs. If the sale brings in more money than is needed to cover those charges, the extra money is called a surplus fund or overage. In Arkansas, the surplus does not automatically go to the purchaser; the county must account for the surplus and follow statutory procedures for distributing it to anyone with a legal right to those funds.

Who can claim surplus funds?

Potential claimants typically include the former property owner, junior lienholders (for example, mortgagees or judgment creditors with recorded interests), and other parties with an equitable or statutory interest in the property. Priority among claimants follows relevant Arkansas statutes and the order of recorded interests. Because facts matter (who recorded liens, when they recorded, whether redemption or other rights exist), you should confirm priorities with the county and, if needed, an attorney.

Step-by-step practical process

1. Confirm whether a surplus exists. Contact the county collector or county treasurer in the county where the property sits. Ask for the tax-sale closing statement or sale report showing the sale price, taxes, penalties, costs, and any surplus amount.
2. Identify who has a legal claim. Review the property’s chain of title and any recorded liens. The former owner is often the first person to look to, but lienholders or others with recorded interests may also have claims. Obtain copies of the deed, mortgage(s), and any judgment liens.
3. Gather documentation to prove your claim. Typical documents the county will require: government-issued photo ID, proof of ownership or lien (deed, mortgage, assignment), tax statements, and any documents showing your right to receive proceeds (such as a payoff demand or lien instrument). If you represent a business or another party, be prepared with proof of authority or corporate documents.
4. File a formal claim with the county. Many counties require a written claim form or affidavit. Submit the requested documentation and follow county instructions. Keep copies of everything and get a receipt or filed-stamp when possible.
5. If the county disagrees or multiple claimants exist, consider court action. When claimants dispute entitlement or the county refuses payment, a claimant may need to petition the appropriate Arkansas court (usually the circuit court in the county where the property lies) to determine entitlement and order distribution of the surplus. The court can adjudicate priorities and order the county to pay the funds to the rightful parties.
6. Receive payment. If the county accepts your claim or the court orders distribution in your favor, the county will pay the surplus—often by warrant or check—after any required administrative processing. Expect some administrative delay while the county verifies records and follows statutory steps.

Important legal references

Arkansas law sets out the procedures and priorities that govern tax sales, redemptions, and distributions. For statutory text and official rules, consult the Arkansas Code, Title 26 (Revenue and Taxation), Chapter 37 (Delinquent tax collection and sale) and related sections. The Arkansas General Assembly publishes the Code online: Arkansas Code (Arkansas General Assembly). Review the provisions that apply to notice, sale procedures, and distribution of proceeds to understand deadlines and priorities.

Time limits and deadlines

Statutes and local procedures may impose deadlines to file a claim or to redeem property before or after sale. Because the time window to act and the procedural steps can vary based on the type of sale, the county, and the specific recorded instruments, act promptly. If you wait too long you risk losing the right to recover surplus funds. When in doubt, contact the county collector and seek legal help.

Common complications

• Multiple claimants: If several parties claim the surplus, the county may refuse to distribute until a court resolves priorities.
• Unclear records: If records (deeds, assignments, releases) are incomplete or ambiguous, you may need to quiet title or obtain a court declaration.
• Escrow or lien offsets: A mortgage holder with a valid interest may have a legal right to part or all of the surplus, depending on priorities and whether the lien survived the tax sale.

Helpful Hints

• Contact the county collector or county treasurer first. They can tell you whether a surplus exists and what local claim form or documentation they require.
• Gather title records before you file a claim: deed, mortgage, recorded assignments, and tax bills help prove your claim quickly.
• Ask the county for the sale ledger or closing statement; it shows sale price, distribution of proceeds, and the calculated surplus.
• If you are a lienholder, confirm whether your lien was junior or senior to the tax lien—priority affects entitlement.
• Keep copies and get written receipts of every submission to the county.
• If the county refuses to pay or multiple parties claim the funds, consult an attorney experienced in Arkansas tax-sale and title disputes. Court petitions are often necessary to resolve contested surpluses.
• Don’t assume the surplus will be held indefinitely. Act quickly; statutes or county rules can limit how long you have to claim funds.