Detailed answer — who can claim surplus funds and how the process works in Hawaii

When a county sells a property to satisfy unpaid real property taxes, the buyer pays the sale price. If the sale price exceeds the total amount owed (taxes, penalties, interest, fees, and any prior lien amounts the sale was intended to satisfy), the extra money is called surplus funds. In Hawaii, the claim to surplus funds generally follows a priority similar to other states: the property owner at the time of sale is first in line, then holders of prior recorded liens (mortgages, judgment liens), and then other statutory claimants.

Who is eligible to receive the surplus?

• the recorded owner of the property at the time of the tax sale (for example, your mother, if she was the owner);
• holders of recorded liens with priority before the tax lien (such as mortgages recorded earlier);
• in the event of the owner’s death, the owner’s legal representative (personal representative, administrator, or executor) or intestate heirs under probate rules;
• other parties with a valid recorded interest or a court-validated claim.

Typical steps to claim surplus funds

1. Confirm whether a surplus exists. Contact the county tax office or treasurer where the property was sold. Ask for the sale records and whether the sale produced surplus proceeds and, if so, the amount and how the county holds those funds.
2. Identify the county procedure and deadlines. Counties administer tax sales and surplus distributions. Procedure, forms, and deadlines differ by county (City & County of Honolulu, County of Hawai‘i, Maui County, Kaua‘i County). Ask the county tax office what documents they require and whether you must file a formal claim or petition the court.
3. Gather proof of entitlement. Typically you will need:
   • photo ID for the claimant;
   • documentary proof tying the claimant to the property — e.g., the recorded deed showing the owner (your mother);
   • if the owner is deceased: the death certificate and letters testamentary or letters of administration (probate documents) showing the estate representative;
   • if you act for the owner while living but incapacitated: a valid power of attorney or guardianship order;
   • if you are an heir but there is no probate: an affidavit of heirship or other documentation the county requires.
4. File the claim with the county — or the court if required. Some counties let the tax collector pay surplus funds after reviewing a claimant’s paperwork; others require the claimant to file a petition in circuit court to obtain a court order directing payment. If the county refuses to release funds because of competing claims, you may need a court hearing to establish priority.
5. Resolve competing claims. If another creditor (for example, an earlier mortgage holder) has a recorded priority lien, that creditor may be entitled to part or all of the surplus. If ownership is disputed or estate documents are incomplete, you may need to open a probate or a court action to establish entitlement.
6. Collect the funds. After the county or court approves your claim, the county will issue payment. If funds remain unclaimed for a statutory period, counties may transfer them to a state unclaimed property program or hold them under local rules—check with the county.

What if your mother is deceased?

If the owner died before or after the tax sale, an estate representative (executor or administrator) generally must claim the surplus on behalf of the estate. If no probate has been opened and the amount is small, some counties accept heirship affidavits or small-claims type affidavits. For larger amounts, open a probate or get a court order recognizing the person entitled to receive estate assets.

Timing and deadlines

Timing matters. County rules and any state statutes that apply may set deadlines for claiming surplus funds or for objecting to distribution. Contact the county immediately after learning about a sale to avoid losing the ability to claim funds.

Relevant Hawaii authority

County tax foreclosure and distribution procedures derive from state statutes and local county rules. For the text of Hawaii laws and chapters that govern tax liens, sales, and related procedures, consult the Hawaii Revised Statutes at the official state website: https://www.capitol.hawaii.gov/hrscurrent/. For county-specific procedures, check the relevant county treasurer or tax office website:

• City & County of Honolulu — Department of Budget and Fiscal Services: Real Property Assessment Division
• County of Hawai‘i — Real Property Tax Division
• Maui County — Real Property Assessment Division
• County of Kaua‘i — Real Property Tax Office

(Search those county websites for “tax sale surplus” or “excess proceeds” to find exact claim forms and instructions.)

When to get a lawyer

Consider hiring an attorney if:

• the county requires a court petition to release funds;
• multiple parties claim the surplus and the dispute is complex;
• you must open probate or obtain court orders to establish the right to receive estate assets;
• the surplus is a substantial amount and you want advice on protecting your rights.

A lawyer with experience in tax sales, real property, or probate can prepare the necessary pleadings, represent you in court, and help resolve competing claims.

Helpful hints — practical checklist to claim surplus funds

• Contact the county tax office first. They often have a published procedure and simple claim forms.
• Act quickly. Deadlines can be short and vary by county.
• Gather original documents: deed, photo ID, mother’s death certificate (if applicable), probate letters, power of attorney, and any recorded mortgage or lien documents.
• If your mother is alive but incapacitated, confirm whether the power of attorney is still valid for this purpose. Some counties require a conservatorship order instead.
• If the sale is very recent, check the public sale record and purchaser’s accounting to verify the exact surplus amount.
• If you find conflicting claimants, request a written explanation from the county about how they plan to distribute funds; ask whether a court order is needed.
• Keep careful copies of everything you send to the county and note all communications (names, dates, and what you were told).
• Use probate if the estate needs to be administered. Even if claiming surplus is your only issue, probate can make the transfer clean and avoid later disputes.
• For small amounts some counties accept sworn affidavits from heirs instead of full probate — ask the county if that is available.
• Consider a free or low-cost consult with a lawyer to review your documents and advise the most efficient route for your situation.