How to claim surplus sale proceeds in Louisiana when an owner had a survivorship interest

Short answer: You may be able to recover a larger share of surplus proceeds if the deed legally created a survivorship interest and you can prove that interest. Whether you win depends on the exact language in the deed, the form of ownership under Louisiana law, whether the alleged owner died before distribution, and whether someone else claims successor rights. This is a factual and procedural issue that usually requires filing a court claim to establish your entitlement.

Detailed Answer

What are “surplus funds”? After a property is sold at a forced sale (for example, after foreclosure or executory sale), the sale proceeds first pay costs, then satisfy secured creditors in order of priority. Any money left over after all liens and costs are paid is called surplus funds (sometimes called overage or excess proceeds). The law requires the court or sale officer to distribute those funds to whoever is legally entitled to them.

Who is typically entitled to surplus funds? Priority depends on the legal ownership and recorded liens. Common claimants include:

Mortgage or lienholders with recorded rights that out-rank others;
Record owner(s) of the property at the time of sale;
People who inherit or succeed to the decedent owner’s interest if the owner died before distribution;
Third parties who can prove an equitable interest (rare and fact-specific).

What is a “survivorship interest” in Louisiana? Louisiana’s property and succession rules differ from other states. Whether a deed creates an automatic right for one co-owner to receive the entire interest on the death of the other depends on the exact legal form of ownership the deed creates. A court will look at the deed language and any applicable statutes or public policy to decide whether a right of survivorship was created.

Key factual/legal points the court will examine

Deed language: Does the deed expressly say the co-owners hold the property with a right of survivorship or words to that effect? Clear, unambiguous language matters.
Form of ownership created: Louisiana recognizes ownership in indivision, community property between spouses, and other proprietorship forms. The legal nature of the ownership affects who inherits when an owner dies.
Timing of death versus sale/distribution: If a co-owner died before the sheriff’s sale or before distribution of surplus funds, the decedent’s successors (heirs or legatees) may have claims under succession rules unless a valid survivorship right cut off succession.
Recorded documents and notice: The public record, mortgage priority, and any recorded declarations will affect who gets paid first and who receives notice and an opportunity to claim surplus funds.
Competing claims: Other creditors or heirs may assert rights. The court sorts conflicting claims; evidence, timing, and priority control.

Typical procedure to assert a survivorship claim to surplus funds

Gather the deed(s), certified copy of the property title records, the sheriff’s sale documents, and any death certificate(s).
Check the deed language for express survivorship wording and check whether the deed was properly recorded.
If the sale produced surplus funds, find the court clerk’s or sheriff’s notice about how to claim the surplus. The sale records and notice typically identify how to request distribution of surplus proceeds.
File a formal claim in the court that handled the sale (or in the registry where surplus funds are held) asking the court to recognize your survivorship interest and order distribution. In many cases the claimant must file a petition or rule to show cause and include supporting evidence.
Serve notice on other interested parties (heirs, creditors, purchasers). They will have a chance to oppose your claim.
The court will hold a hearing, weigh the deed language and evidence, and enter an order distributing the funds to whoever it finds entitled.

Common outcomes

If the deed clearly created a valid survivorship right and you can prove you survive the co-owner, the court may award you the decedent’s share of surplus proceeds.
If the deed does not create survivorship or is ambiguous, the decedent’s successors may claim the share and the court may deny your expanded claim.
If other creditors or lienholders have superior rights, they may take the surplus before owners receive anything.

Why an attorney helps

Asserting a survivorship interest typically requires: (a) careful review of the deed and records; (b) preparing pleadings and evidence that meet Louisiana procedural rules; and (c) handling contested hearings. Small mistakes in pleading, service, or evidence can cause denial of your claim. An attorney familiar with Louisiana property and succession practice can identify the best legal theory, assemble evidence, and move your claim efficiently through the court.

What evidence you should collect now

Certified copy of the deed(s) that show ownership and the exact wording used.
Record search for mortgages, liens, and other encumbrances affecting the property.
Death certificate of any deceased co-owner.
Sheriff’s sale paperwork and the court record describing sale proceeds and any notice about surplus funds.
Any written agreements between co-owners referencing survivorship or succession arrangements.
Contact information for other potential claimants (heirs, creditors).

Timing and deadlines

Deadlines vary by the court that handled the sale and the clerk’s procedures for distributing surplus funds. You should act promptly after learning about surplus proceeds. Waiting can allow others to claim the money or may result in missed procedural deadlines. If funds are already deposited into the court registry, courts often require a formal application or rule to obtain distribution.

Practical examples (hypothetical)

Example 1: Two people hold title and the deed expressly states that upon death of one owner, the surviving owner shall take the entire property “by right of survivorship.” The property sold in a forced sale and surplus proceeds remain. If the deceased owner died before distribution, the surviving owner files a petition showing the deed language and a death certificate; the court may order the survivor to receive the decedent’s share of the surplus.

Example 2: Two people hold title but the deed is silent about survivorship (ownership in indivision). One dies before distribution. The decedent’s heirs open a succession and assert their share of the surplus. The survivor’s attempt to claim the whole amount will likely fail unless the survivor can prove an enforceable survivorship agreement.

Helpful Hints

Read the deed wording carefully. Short phrases like “with right of survivorship” matter; ambiguous language weakens claims.
Get certified copies of all recorded documents sooner rather than later. Records can be vital and sometimes hard to reconstruct later.
Act quickly when you learn surplus funds exist. Courts and clerks often have internal rules about filing deadlines.
If the owner died, obtain an official death certificate and any succession documents showing who inherited the decedent’s interest.
Be prepared to pay filing fees and possibly request the clerk to hold funds in the registry while a dispute is resolved.
If multiple claimants exist, expect contested hearings. Settlement among claimants is common when competing claims are expensive to litigate.
Talk with a Louisiana attorney experienced in property, succession, or executory-process matters before filing complex pleadings; many attorneys offer an initial consult to evaluate strength of the claim.

Disclaimer: This article is for general information only and is not legal advice. It does not create an attorney-client relationship. For advice about your specific facts and the correct court procedures in Louisiana, consult a licensed Louisiana attorney.