Detailed Answer

This article explains how to check for and claim surplus (excess) funds after a property is sold for unpaid taxes in Maryland. It is written for someone with no legal background who is trying to recover money from a tax sale of a family member’s home. This is general information only and not legal advice. For legal advice about your specific situation, talk to a licensed Maryland attorney.

What are “surplus funds” after a tax sale?

When a county sells a property to collect unpaid property taxes, the winning bid covers the taxes, interest, penalties, fees and any lien amounts the county was trying to collect. If the sale price exceeds all of those amounts plus the sale costs, the extra money is called “surplus” or “excess proceeds.” The law generally requires the county to hold those surplus funds and make them available to parties with a higher priority interest in the property (for example, the former owner, certain lienholders or heirs).

Who can claim surplus funds in Maryland?

Typical claimants (in order of priority) include:

The former recorded owner(s) of the property (your mother, if title was in her name).
Persons who hold recorded liens or mortgages that survive the tax sale, to the extent those liens have priority.
Heirs or beneficiaries if the former owner is deceased — but they typically must show they are legally entitled to the estate (e.g., by presenting probate or letters of administration).

If you are acting on behalf of your mother and she is alive, you usually need an authorization (a signed power of attorney) or the owner’s cooperation to claim funds. If your mother is deceased, you will usually need to show you are the personal representative, executor, or an heir with legal authority to claim funds.

Steps to find and claim surplus funds in Maryland

Confirm whether surplus exists. Contact the county tax collector’s office or the office that handled the tax sale. Many Maryland counties post tax-sale information online, and the Department of Assessments and Taxation (SDAT) provides general guidance about tax sales: https://dat.maryland.gov/realproperty/Pages/Tax-Sale.aspx. Ask whether the sale produced excess proceeds and where the proceeds are being held.
Get the sale documents and official records. Obtain the Tax Sale Certificate of Sale (or equivalent), the sale transcript, and any judgment or recorder’s documents from the county (often the clerk of the circuit court or tax collector). These records show the sale amount, the amounts paid out for taxes and liens, and whether surplus was declared.
Identify the right office to file a claim. Depending on the county, surplus funds may be held by the tax collector, the county treasurer, or the clerk of the circuit court. The Maryland Judiciary maintains local court and clerk directories that can help you find contact information: https://www.mdcourts.gov/circuit/directory.
Gather documentation to prove your claim. Commonly required items include:

Photo ID for the claimant.
Proof of ownership or interest in the property: recorded deed, title search, or tax records showing your mother as owner.
If claiming for someone else: power of attorney, signed authorization, or written consent from the owner.
If the owner is deceased: death certificate plus court-issued letters (letters testamentary or letters of administration) or other probate documents showing you are executor/administrator or otherwise entitled to act for the estate.
Any documents showing prior lienholder status (recorded mortgage, judgment lien) if you represent a lienholder.

File a claim or petition where directed. Follow the county’s procedure — that may be a simple claim form with the tax collector or a formal petition to the circuit court asking for distribution of surplus funds. The clerk or county office can tell you what form to use and whether the claim must be notarized.
Serve notice if required. Some counties require notice to other interested parties if the claim is made through the court. If competing claims are possible, the court may set a hearing to determine who is entitled to the funds.
Receive payment or court order. If the county or court approves your claim, the office holding the funds will issue a check or direct distribution. If there are competing claims, the court will decide priority and order distribution accordingly.

Deadlines and time limits

Time limits vary. Some counties will hold surplus funds for a certain time, then turn unclaimed funds over according to state unclaimed property rules, or they may require claimants to file within a statutory period or within the time the county is required to report unclaimed funds. Because rules and timelines differ between counties and because unclaimed property rules may apply, act promptly once you learn a surplus might exist.

If the owner is deceased, probate matters can complicate timing: you may need to open a probate or small estate matter to obtain authority to claim the funds. Contact the clerk of the circuit court in the county where the property is located for local procedures and timelines: https://www.mdcourts.gov/circuit/directory.

Common complications

Multiple claimants — creditors or other recorded lienholders may assert claims. The court determines priorities.
Owner cannot be located — counties often follow unclaimed property procedures after holding funds for a statutorily required period.
Owner is deceased without probate — you may need to open probate or file a small estate affidavit to obtain authority to claim.
Scams — there are companies that charge large fees to “recover” surplus funds. You can usually make the claim yourself for little or no fee; be careful before signing any contract that gives third parties a high percentage of recovered funds.

When to talk to a lawyer

Consider consulting a Maryland attorney if:

There are competing claimants and you need to litigate priority.
You need to open probate or obtain letters to prove authority to act for the estate.
The county or clerk rejects your claim and you need to appeal or file a formal petition in court.

You can find county circuit court contact information at the Maryland Judiciary site to learn local filing procedures: https://www.mdcourts.gov/circuit/directory. For general information about Maryland tax sales (process and contacts), see the Department of Assessments and Taxation: https://dat.maryland.gov/realproperty/Pages/Tax-Sale.aspx.

Helpful Hints

Act quickly. Begin by contacting the county where the property was sold; county offices differ in procedures and deadlines.
If your mother is alive and able, have her sign an explicit written authorization (preferably notarized) naming you to file a claim on her behalf.
If your mother has passed, open probate or obtain court-issued letters before filing if the county requires proof of legal authority to handle estate funds.
Keep certified copies of recorded deeds, the death certificate, probate letters, ID, and any tax-sale paperwork. The more documentary proof you have, the faster the process.
Beware of recovery firms that demand large contingency fees. Many county offices provide claim procedures for free or for a small processing fee.
When in doubt about competing claims or complicated title questions, consult a Maryland attorney experienced in tax sale, probate, or real estate matters.

Relevant official resources (state and local):

Maryland Department of Assessments and Taxation — Tax Sale information: https://dat.maryland.gov/realproperty/Pages/Tax-Sale.aspx
Maryland Judiciary — Circuit Court directory and clerk contacts: https://www.mdcourts.gov/circuit/directory

Disclaimer: This content is for general information only and is not legal advice. Laws and procedures differ by county and change over time. For advice about your specific situation, consult a licensed Maryland attorney.