Recovering Surplus Funds After a Tax Sale in Kansas | Kansas Estate Planning | FastCounsel
KS Kansas

Recovering Surplus Funds After a Tax Sale in Kansas

Detailed Answer

Overview. When a parcel of real property is sold at a Kansas tax sale because property taxes were not paid, the county collects the sale proceeds, applies them to the unpaid taxes, interest, penalties and sale costs. If the sale brings in more money than is owed for taxes and lawful charges, the excess money (the “surplus”) belongs to whoever is entitled to it under Kansas law. Recovering surplus funds involves locating the money, proving you are entitled to it, and making a formal claim so the county can distribute the funds or a court can order distribution.

Who may be entitled to a surplus? In most situations the following people may have a claim (in roughly this order, but priorities can vary depending on the facts and liens):

  • The record owner of the property at the time of sale (or that owner’s successors or heirs).
  • Holders of recorded liens or mortgages whose liens were not entirely satisfied by the sale proceeds.
  • Other parties with a legally recognized interest in the property (judgment lien holders, certain contract sellers, etc.).

Typical steps to recover surplus funds in Kansas

  1. Confirm a surplus exists. Contact the county treasurer, county clerk, or the county’s tax sale/certificate-of-sale office where the property was located. Ask whether the tax sale produced proceeds in excess of taxes, interest, penalties and costs. County offices can often tell you whether funds remain and how they are being held.
  2. Identify where the funds are held. Counties may hold surplus money in a county treasury account or may have turned the matter over to the district court for distribution. The county treasurer or county clerk can tell you whether the funds are being retained by the treasurer or deposited with the court.
  3. Gather documents proving your claim. Typical documentation includes a deed or other documents showing you were the record owner at the time of sale (or that you are the heir or successor), copies of prior deeds, a government-issued ID, documents proving mortgage or lien status (for lienholders), and any correspondence or notices related to the tax sale. If you represent a corporation or trust, bring formation documents and evidence of authority to act.
  4. File the required claim or petition. If the county treasurer is holding the surplus, most counties require a written, sworn claim or an application for distribution supported by the documents listed above. If the funds were deposited in district court, you will likely need to file a motion or petition in that court asking for distribution of the surplus and attaching proof of your entitlement. Ask the county or the clerk of the district court what form and filing procedure they require.
  5. Resolve competing claims. If more than one party claims the surplus, the county or the district court will resolve who has the superior claim, often by a court hearing. The court will consider the relative priorities of competing liens, ownership history and statutory rules when deciding distribution.
  6. Collect the funds. After the county or court approves your claim, you will be issued payment (check or other county/court-ordered payment). Some counties require you to appear in person or make specific identification and sign an affidavit before funds are released.

Statutes and where to look. Kansas tax sale and delinquent tax procedures appear in the Kansas statutes that govern property taxation and tax sales. For general statutory guidance on county tax procedures and delinquent tax sales, see the Kansas statutes covering taxation and tax collections. The official Kansas statutes are maintained by the Revisor of Statutes: https://www.ksrevisor.org/statutes/chapters/ch79.html. For procedural questions about petitions filed in court, consult the district court rules and civil procedure statutes available through the same site or the local district court clerk.

Practical considerations and common complications

  • Timing: Act promptly. Some claims can be time-limited, and evidence (deeds, records, witnesses) can become harder to assemble with delay.
  • Priority disputes: Resolving competing lien and ownership claims can require a court proceeding and legal argument about priority.
  • Documentation: Counties and courts require certified or notarized copies of deeds and other records. Originals may be requested or required for inspection.
  • Legal help: If competing claims or complicated lien priority questions arise, consider consulting an attorney experienced in Kansas tax sale and real property law to prepare documents and represent you in court.

Where to start locally

  1. Call or visit the county treasurer’s office (or the county clerk’s tax sale unit) in the county where the property was located and ask whether a surplus exists and the county’s procedure for claiming distribution.
  2. If the funds are held by the district court, contact the clerk of the district court for filing instructions and required forms.
  3. Gather deeds, IDs, lien documents, and any notices you received about the tax sale before filing your claim.

Example (hypothetical). Suppose Jane Doe owned a Kansas lot that went to tax sale. The sale produced $25,000. Taxes, penalties and sale costs totaled $6,500, and a preexisting mortgage required payment of $10,000 from sale proceeds. After paying the county charges and the mortgage, $8,500 remained. Jane, as the former record owner, files a sworn claim with the county treasurer, presents her deed and ID, and the county issues payment after confirming no other superior claim exists. If the mortgage holder disputed Jane’s claim, the county or court would resolve priority before distributing the $8,500.

Important: This summary describes the common process for identifying and claiming surplus funds after a Kansas tax sale. Specific procedures and deadlines can differ between counties and may change over time, so always confirm local process with the county treasurer or district court clerk.

Helpful Hints

  • Contact the county treasurer or county clerk in the county where the property was located as your first step.
  • Keep certified copies of deeds, tax notices, mortgage documents and ID handy before making a claim.
  • Ask whether funds are held by the treasurer or deposited with the district court—filing steps differ.
  • If you are a lienholder, bring lien documentation showing recording date and amount owed.
  • Be prepared to sign a sworn affidavit or provide notarized documents to support your claim.
  • If multiple claimants emerge or the county refuses distribution, be ready to file a petition in district court and consider hiring counsel.
  • Check the official Kansas statutes and your county’s website for any forms or instructions: https://www.ksrevisor.org/statutes/chapters/ch79.html
  • Do not assume that being the former owner automatically guarantees immediate payment; competing interests may delay distribution.
  • If you cannot locate county records online, visit the county courthouse—property records and sale records are public and available at the register of deeds and the treasurer’s office.

Disclaimer: This article provides general information about recovering surplus funds after a tax sale in Kansas. It is not legal advice and does not create an attorney–client relationship. For advice specific to your situation, contact a licensed Kansas attorney or the county officials handling the tax sale.

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney.