How a deed’s right of survivorship affects claims to foreclosure surplus in Connecticut

Short answer

If the deed shows a valid right of survivorship (for example, joint tenants with right of survivorship or tenancy by the entirety for spouses) and the co‑owner died before the foreclosure sale, the surviving owner generally steps into the decedent’s full ownership interest and may be entitled to the entire surplus. If the co‑owner died after the sale or the deed does not create survivorship, the decedent’s share usually passes to the estate and competing claimants (lenders, judgment creditors, heirs) may have claims. The specific outcome depends on deed language, the timing of death, recorded documents, and any competing recorded interests.

Detailed answer — how this works in Connecticut

When a property sells in a foreclosure, any money left after paying the foreclosing creditor and any valid lienholders is called the surplus or excess proceeds. Courts or the foreclosure referee/distribution process distributes the surplus to people who have legal ownership or other valid claims to the property at the time the right to the surplus is determined.

Key legal concepts and how they affect a claim for a larger share of surplus funds:

Deed language controls ownership form. If the deed conveys title to two or more people as joint tenants with right of survivorship (or, for married couples, as tenants by the entirety), then when one co‑owner dies the survivor automatically owns the whole property by operation of title. That means the survivor owns the share that would otherwise belong to the decedent and is typically the person entitled to any surplus proceeds tied to that ownership interest.
Timing of death matters. If the co‑owner died before the foreclosure sale or before the right to the surplus is fixed, survivorship generally passes title to the surviving owner and the court will treat the survivor as the full owner when it distributes surplus funds. If the co‑owner died after a sale or after the court fixed distribution, the decedent’s interest may become part of the decedent’s probate estate and the estate (or heirs) may have a claim.
Recorded evidence is decisive. Courts and the clerk handling distribution will rely on the deed, death certificate, recorded affidavits (such as an affidavit of survivorship), and other recorded instruments. The person asserting survivorship should be ready to supply certified copies of the deed, the death certificate, and any required affidavits or recorded documents.
Competing claims can reduce or eliminate surplus recovery. Other lienholders, judgment creditors, or successors in interest might file claims against surplus funds. The court will sort claims by priority and legal entitlement before issuing a distribution order.
If title does not include survivorship: If the deed creates a tenancy in common or otherwise does not include survivorship language, each owner’s share is transferable by will or intestacy. A decedent’s interest will usually pass to the estate or heirs, not automatically to the surviving co‑owner.

Practical examples (hypothetical):

Deed states “A and B, joint tenants with right of survivorship.” A dies before the foreclosure sale. B is the sole owner at the time the court determines distribution and may claim the entire surplus (subject to any other liens and priorities).
Deed states “A and B, tenants in common.” A dies before the sale. A’s share passes to A’s estate or heirs. Surplus funds will be divided according to each owner’s share; B cannot automatically claim A’s share by survivorship.
Married couple holds title as tenancy by the entirety and a mortgage in one spouse’s name leads to foreclosure. The precise effect can be complex; survivorship is inherent in tenancy by the entirety, but creditor/foreclosure consequences can vary depending on whose debt was foreclosed and whether both spouses agreed to the mortgage.

Where to look for Connecticut resources and rules: consult the Connecticut Judicial Branch and the Connecticut General Assembly websites for background on foreclosure procedure and property conveyancing:

Because these matters turn on recorded documents and procedural deadlines, you will likely need to present documentary proof to the court or clerk handling the foreclosure distribution. If ownership is unclear or there are competing claimants, a short contested court proceeding or motion may resolve who gets the surplus.

Step‑by‑step checklist to assert a survivorship claim

Get certified copies of the deed showing the survivorship language from the town clerk where the property is recorded.
Obtain a certified copy of the death certificate for the decedent.
Check the foreclosure case file (court clerk or foreclosure attorney) to find how the surplus will be handled and whether a distribution motion or claim process is open.
If available, prepare and record an affidavit of survivorship (or other required instrument) under local recording rules. Ask the town clerk what they require.
File a motion or claim for the surplus with the court or clerk handling distribution, attaching deed, death certificate, and any affidavits. Serve notice on other parties in the foreclosure as required.
If the deed does not show survivorship, contact the probate court to determine whether a probate estate claim is necessary (letters testamentary or administration may be required for the estate to claim surplus funds).
Be prepared for other parties (creditors, lienholders, heirs) to assert claims. Keep deadlines and notice requirements in mind.

Helpful hints

Read the deed carefully. Words like “joint tenants with right of survivorship,” “with right of survivorship,” or “tenancy by the entirety” usually indicate survivorship. Ambiguous language may not create survivorship.
Record evidence quickly. Recording a survivorship affidavit or other proof can make the administrative process smoother.
Timing is crucial. Whether the co‑owner died before or after the foreclosure sale often determines who owns the interest when surplus is distributed.
Get certified documents. Courts and clerks usually require certified death certificates and certified copies of recorded deeds.
Contact the court clerk for procedure. Different foreclosure matters may be handled by different court units or clerks; ask where to file a claim for surplus funds in your county’s foreclosure docket.
Consider a brief consultation with a Connecticut real estate or foreclosure attorney if ownership is disputed or the surplus is large. An attorney can file the right motions and protect your statutory rights.
If title is unclear, a quiet title or declaratory action may be necessary. Those are more complex and usually require counsel.