Detailed Answer: How surplus funds are handled after an Ohio tax sale

This page explains, in plain language, what a surplus (or overage) is after a tax sale in Ohio and how someone who believes they are entitled to those funds can try to recover them. This is educational information only and not legal advice. For a final determination about your rights and deadlines, contact the county treasurer where the sale occurred or consult a licensed Ohio attorney.

What is a surplus (overage)?

When a county sells real property because property taxes are unpaid, the sale proceeds first pay the taxes, penalties, interest and the costs of the sale. If the sale brings in more money than is needed to cover those amounts, the leftover money is called a surplus or overage. That money does not automatically stay with the purchaser or the county; it may be claimed by parties with a legal right to it.

Who has a right to the surplus in Ohio?

Priority for surplus distribution follows the order of legally recorded and statutorily prioritized claims. Generally:

Amounts needed to pay tax liens, penalties, and sale costs are paid first.
Other recorded lienholders (for example, mortgagees or judgment creditors with recorded liens) may have a claim, subject to the order of their recorded priority.
The former property owner (or that owner’s heirs or successors in interest) can claim any remaining surplus that is not required to satisfy superior liens or fees.

Ohio law sets out the foreclosure, sale, and distribution procedures for delinquent tax sales; see the Ohio Revised Code provisions addressing tax sales and distribution procedures for more detail (for example, review relevant chapters at the Ohio Revised Code: Ch. 5721 and Ch. 5723).

How to file a claim to recover the surplus

Steps below describe the typical process in Ohio counties. Procedures and forms can differ by county, so confirm specifics with the county treasurer or the clerk of courts where the sale happened.

Confirm a surplus exists. Contact the county treasurer’s office or check the county’s tax sale records online. County offices maintain records on tax-sale receipts, distributions, and whether any surplus funds remain.
Determine whether you have an entitled interest. To claim a surplus you must show you have a legal interest in the surplus — for example, you are the former property owner, a recorded mortgagee, judgment creditor, or another holder of a recorded lien with priority ahead of other claimants.
Gather documentation. Typical supporting documents include a government-issued ID, the recorded deed or mortgage, recorded judgment or lien documentation, proof of heirship (if claiming as an heir), and any other papers showing you are the person entitled to funds. If you represent a company, you may need a certified copy of formation documents and proof of authorized signatory authority.
Submit a written claim or application for distribution. Many counties require a written application to the county treasurer or the clerk of court. The application normally asks for claimant information, the basis of the claim, documentation showing the claimant’s right to the funds, and a signed declaration. If the county has a standard form, use it. Contact the treasurer’s office to confirm the exact form and filing steps.
If multiple claimants exist, be prepared for distribution disputes. If more than one person files a claim to the same surplus, the county may hold the funds until competing claims are resolved. The county might file an interpleader or seek directions from the county court. In contested cases, you (or another claimant) will often need to file a claim or motion in the appropriate court (commonly the county common pleas court) to establish priority and obtain distribution.
Accepting payment. If the county approves your claim, the county will issue payment according to its procedures (for example, a check). The county may require a release or other paperwork that confirms you accept the funds and waive further claims.

Timing, deadlines, and practical tips

Timing rules and deadlines can vary and may be strict. Some counties treat surplus funds as held indefinitely until a valid claim is filed; others have specific timelines or distribution procedures. If you believe you may be entitled to overage funds, act promptly:

Contact the county treasurer’s office early to learn their local claim procedures and forms.
Run a title search or request a copy of the county’s sale transcript to confirm the sale date, amount collected, and the existence of surplus funds.
If you are a mortgagee or lienholder, confirm whether your lien was properly recorded and whether it was junior or senior to the tax lien at the time of sale.
If the surplus distribution is contested, consider seeking legal representation early. A contested distribution may require filing a court action to establish your entitlement.

Where to find Ohio rules and statutes

Key places to look for official information:

Ohio Revised Code — as a starting place for statutes governing tax sales, foreclosure procedures, and distributions: https://codes.ohio.gov/. Relevant chapters include those that govern delinquent tax sales and distribution procedures (see, for example, Ch. 5721 and Ch. 5723).
The county treasurer’s office where the property was taxed — each county manages its tax sale records and the local process for surplus claims.
The county clerk or common pleas court — if the surplus is the subject of a dispute, the court’s rules and docket will show required filings and any matched cases.

Example scenario (hypothetical)

Jane owned a small lot in Cuyahoga County and failed to pay property taxes. The county sold the parcel at a tax sale. The sale produced $15,000. Taxes, penalties and sale costs totaled $9,000. That left a $6,000 surplus. A recorded mortgage holder with a properly recorded lien that was junior to the tax lien had a claim for $3,000; the mortgage holder files a claim and receives $3,000. Jane files a claim as the former owner for the remaining $3,000 and supplies identity, deed records, and a signed request; the county reviews the documents and pays Jane the remainder. If multiple parties had filed competing claims to the remaining surplus, the county might have held the funds until a court decided priority.

Helpful Hints

Start with the county treasurer’s office — they hold the records and handle initial claims.
Obtain a certified copy of the sale transcript and final distribution report — these show precise numbers and recipients.
Gather proof of your legal interest in the property (deed, mortgage, judgment, will, death certificate, letters testamentary) before filing a claim.
If you are a lienholder, document the date your lien was recorded—priority is determined by recording order.
Act quickly — even when no firm statutory deadline is clear, delays can complicate retrieval and evidence gathering.
If the county refuses to distribute or multiple claimants contest the funds, consult an attorney familiar with Ohio tax-sale and surplus-distribution law — contested matters often require court resolution.
Do not assume the purchaser at the tax sale automatically keeps any surplus — in many cases, the purchaser’s right is limited to the amounts necessary to satisfy the tax delinquency and costs.

Important disclaimer: This article is educational only and does not create an attorney-client relationship. It is not legal advice. The rules for tax sales and surplus distributions are technical and can vary by county and the exact statute or procedure involved. For legal advice about your specific situation and applicable deadlines, consult a licensed attorney in Ohio or contact the county treasurer in the county where the property was located.