Overview
When a property in Nevada is sold at a tax sale for more than the amount needed to cover unpaid taxes, penalties, interest and administrative costs, the extra money (the “surplus funds”) does not automatically go to the buyer. State law and county procedures control who may claim that surplus and how to get it. This article explains the usual steps, what documents you will need, who has priority to the money, and practical tips for recovering surplus funds in Nevada.
Detailed Answer
1. How surplus funds arise
At a tax sale, a county sells property to satisfy unpaid property taxes. If the sale price exceeds the tax lien, penalties, interest, costs, and any superior liens the law requires the county to pay from the sale proceeds, the remaining balance becomes surplus funds held by the county.
2. Who can claim the surplus?
Persons with a legal interest in the property typically may claim surplus funds. That can include:
- The former record owner(s)
- Recorded lienholders (mortgagees, judgment creditors) with priority under recorded instruments
- Other parties who can show an equitable interest
Which parties have priority depends on Nevada law and the order of recorded interests. The county will distribute funds according to applicable statutes and its procedures.
3. How to find out whether surplus funds exist
Start with the county treasurer or county tax collector where the property is located. Many Nevada counties publish lists or databases of tax sale results and show surplus amounts. If you know the parcel number or property address, provide that information when you contact the county.
4. The typical claim process
- Contact the county treasurer or tax office. Ask whether surplus funds exist for the parcel and request the county’s claim form or instructions.
- Prepare supporting documents. Commonly required items include government-issued photo ID, proof of ownership or an authenticated copy of the deed, recorded mortgage or lien documents, sworn affidavits, and any court orders showing entitlement.
- Submit a written claim. Counties generally require a formal written claim or affidavit and supporting documents. Some counties have a specific form; others accept a notarized affidavit and copies of recorded instruments.
- County review. The county will review the claim and may verify priorities against the land records. If the county finds no competing claims, it may approve payment. If multiple claimants appear, the county may require petitioning a court to resolve priorities.
- Payment or court action. If the county approves a claim, it will issue payment. If there are disputes about entitlement or priorities, claimants may need to file a petition in the county district court asking the court to determine distribution of the surplus.
5. What if multiple parties claim the surplus?
If two or more parties claim the same surplus funds, Nevada law and county rules determine who has priority. When the county cannot resolve competing claims on its own, it often deposits the funds with the court or refuses disbursement until a court order resolves entitlement. In that case, a claimant will normally file a civil action or a special statutory petition to secure the money.
6. Time limits and statute of limitations
Recovering surplus funds usually involves time-sensitive steps. While precise deadlines can vary depending on the statute and county practice, you should act promptly once you learn of a surplus. Consult the Nevada Revised Statutes and the county’s published rules for any specific filing deadlines and limitations. For statutory framework on tax sales and related procedures, see NRS Chapter 361: https://www.leg.state.nv.us/NRS/NRS-361.html.
7. Costs and fees
Recovering surplus funds can involve administrative fees, notary costs, and—if court is required—filing fees and attorney fees. If a court orders distribution, the court will also typically direct how costs are paid from the funds before final distribution.
8. Typical timeline
The timeline varies. If the claim is straightforward and the county handles it administratively, you might receive payment in a few weeks to a few months. If there are competing claims or court involvement, the process can take several months or longer.
9. Example (hypothetical)
Hypothetical facts: A parcel sells at a county tax sale for $20,000. The county applies $12,000 for taxes, penalties and sale costs and pays out $3,000 to a senior recorded lienholder as required. The remaining $5,000 is surplus funds. The former owner files a notarized claim with the county treasurer, attaching a copy of the deed showing ownership at the time taxes became delinquent. The county confirms no higher-priority claim exists and issues payment to the former owner after any required waiting period. If a junior lienholder later files a conflicting claim, the county may freeze the funds and ask the court to resolve competing claims.
10. When to consult an attorney
Consider legal help when:
- You face competing claimants or priority disputes
- The county refuses to release funds without a court order
- Complex title or multiple recorded liens exist
An attorney can prepare pleadings, represent you in court, and help secure distribution of the funds.
Helpful Hints
- Contact the county treasurer or tax collector first — they hold the funds and often publish procedures online.
- Have the parcel number, property address, former owner name, and sale date ready when you contact county staff.
- Gather recorded documents (deeds, mortgages, assignments, judgments) before submitting a claim.
- Use certified copies of recorded instruments and get documents notarized when required.
- Act quickly — delays can complicate recovery and allow other claimants to appear.
- Keep careful records of every communication, form and receipt related to your claim.
- If the county directs you to file in district court, follow its directions precisely and meet court deadlines.
- Check NRS Chapter 361 for the statutory framework that governs tax sales and related procedures: https://www.leg.state.nv.us/NRS/NRS-361.html.
Next steps
Start by calling or visiting the website of the county where the property sits. Ask for the tax sale records and the county’s surplus funds claim procedure. If the situation involves conflicting claims or unclear title history, consider speaking with an attorney experienced in Nevada tax-sale and real property matters.
Disclaimer: This article provides general information about Nevada procedures for recovering surplus funds from a tax sale. It does not constitute legal advice, does not create an attorney-client relationship, and is not a substitute for consulting an attorney about your particular situation.