Detailed Answer
When a judicial sale (foreclosure or other court-ordered sale) produces more money than is needed to pay creditors and costs, the extra money is called “surplus funds.” In Louisiana, surplus funds are held by the sheriff, the court clerk, or another court-appointed custodian until a lawful owner or claimant proves a right to those funds.
This section explains the kinds of documents commonly needed to prove ownership or entitlement to surplus funds and the typical steps to obtain the funds. This is educational information only and not legal advice—consult a Louisiana attorney for case-specific guidance.
1) First step: confirm where the surplus is and the claimant procedure
Contact the sheriff or the clerk of court in the parish where the sale occurred. Ask whether surplus funds exist, how they are held, and the required procedure and form for submitting a claim. Filing requirements and local forms vary by parish.
2) Core documents that prove ownership of the property
Most claimants will need certified, recorded, or notarized copies of documents that establish ownership or legal right to the property at the time of the sale or at the time of claim. Typical documents include:
- Recorded deed or act of sale showing the claimant as owner.
- Recorded mortgage cancellation or release, if relevant.
- Title insurance policy or a recent title report showing ownership and chain of title.
- Property tax bills or receipts in the claimant’s name (supports possession or claim to title).
- Recorded judgment or court order awarding ownership (for court-created rights).
3) Documents for heirs, successors, and estate claimants
If the recorded owner is deceased, you generally must prove your right as an heir or executor. Useful documents:
- Death certificate of the recorded owner.
- Succession (probate) documents: final succession judgment, testament, letters testamentary, or any court order establishing heirs or a testamentary executor.
- Affidavit of heirship (some parishes accept a properly executed affidavit for small estates, but many require a court succession).
- Any will with an accompanying court order recognizing it.
4) Documents for trustees, trusts, and agents
- Trust agreement and a certificate of trust or trustee certification.
- Recorded deed showing the trust as owner (if applicable).
- Power of attorney or notarized authorization, plus a government ID for the agent; powers of attorney are often scrutinized and sometimes require court approval.
5) Documents for corporations, LLCs, and other entities
- Articles of incorporation/organization or filed formation documents showing the entity.
- Resolution or corporate action authorizing the person who will sign the claim.
- Current Certificate of Good Standing from the Louisiana Secretary of State or certified formation documents.
6) Identification and proof of authority
All claimants typically need:
- Government-issued photo ID (driver’s license, passport).
- Notarized signature on the claim form or notarized supporting affidavits.
- Certified copies of court orders or official records (often required rather than photocopies).
7) Additional documentation that courts or sheriffs commonly request
- A completed claim form supplied by the sheriff or clerk (some parishes provide a standard affidavit or application).
- A copy of the deed book and page or instrument number showing the recorded documents.
- Evidence of payments made (for example, that claimant paid off a mortgage or taxes) if claiming an equitable interest in surplus proceeds.
- Chain of title documents when title disputes exist.
- Certified translations for any foreign-language documents.
8) How the court decides competing claims
If multiple parties assert rights to the surplus, the clerk or sheriff may require the parties to file competing petitions in the district court. The court will review documentary proof (deeds, successions, trust documents, assignment records) and determine which claimant has superior legal or equitable title. Be prepared for the court to require certified original documents or authenticated copies.
9) Timing and urgency
Act quickly. Even if you believe you have a clear right, delays can complicate proof and allow other parties to file competing claims. Contact the parish sheriff or clerk promptly and ask about any deadlines or required notice to other parties.
10) Where to find Louisiana law and local rules
Louisiana’s statutes and court procedure rules govern judicial sales and distribution of proceeds. For statute texts and titles, use the Louisiana Legislature website: https://legis.la.gov/. For parish-specific practice, contact the parish clerk of court or the sheriff’s office where the sale took place.
Helpful Hints
- Start with the sheriff and clerk: they will confirm whether surplus funds exist and provide the local form and instructions.
- Bring certified or notarized copies—not plain photocopies—unless the office says a photocopy is acceptable.
- If the owner died, get certified succession documents rather than only an affidavit when possible; courts often require a succession judgment.
- Corporations and LLCs must provide up-to-date formation documents and an authorized resolution for whoever signs the claim.
- Use a recent title report to assemble your chain of title evidence; a title company can prepare this for you.
- If you are acting under a power of attorney, ensure it specifically authorizes you to recover funds and that it complies with Louisiana requirements.
- Keep originals safe; provide certified copies to the court or sheriff when requested.
- Get help early from a Louisiana attorney if there is any dispute over ownership, multiple claimants, or unclear succession issues.
- Request a written receipt or acknowledgment when you file your claim—proof of filing can be important if others file against the same surplus.
- Remember: each parish may interpret practice slightly differently—local counsel or the clerk’s office can save time and avoid mistakes.
Disclaimer: This article is for general informational purposes only and does not constitute legal advice. It explains common practices and documents used in claims for surplus sale proceeds in Louisiana. For advice about a particular situation, consult a licensed Louisiana attorney.