What is the process for recovering any surplus funds if the property is sold at a tax sale? - Pennsylvania
The Short Answer
In Pennsylvania, surplus (excess) proceeds from a sale are not automatically paid out to everyone who might claim them. Under the controlling statute provided, the balance after the lien is satisfied is held for delivery to the occupant on demand, and if it is not claimed within a set time, it is treated as unclaimed/abandoned property and turned over to the Commonwealth.
If the owner or claimant is deceased, probate issues (who has authority to claim and how competing claims are handled) can make recovering the surplus significantly more complicated and time-sensitive.
What Pennsylvania Law Says
When a property is sold and the sale proceeds exceed the amount needed to satisfy the lien and sale-related costs, Pennsylvania law can require that the “excess balance” be held for a particular claimant and, if not timely claimed, transferred to the State as unclaimed property. In practice, who is entitled to demand the funds (and what proof is required) can depend on the sale type, who is in possession/occupancy, and whether the person entitled to claim is living or deceased.
The Statute
The primary law governing this issue is 12 Pa.C.S. § 5614.
This statute establishes that after the lien is satisfied from the sale proceeds, the owner must hold any remaining balance for delivery on demand to the occupant; if the occupant does not claim the balance within six months of the sale date, it is deemed abandoned/unclaimed property and must be reported and paid to the State Treasurer to be handled under Pennsylvania’s unclaimed property rules.
Why You Should Speak with an Attorney
While the statute provides the general rule, applying it to your specific situation is rarely simple. Legal outcomes often depend on:
- Strict Deadlines: Under 12 Pa.C.S. § 5614, the occupant has a six-month window from the date of sale to claim the excess balance before it is treated as abandoned and sent to the State Treasurer.
- Burden of Proof: The party demanding the funds typically must prove entitlement (for example, identity, occupancy/possession status, and authority to act if the entitled person is deceased). Missing documentation can delay payment or trigger disputes.
- Exceptions and Competing Claims: Surplus proceeds can be contested—especially when there are multiple occupants, heirs, an estate, or other parties asserting rights. If the person who would claim the funds has died, the question often becomes who has legal authority to act for the estate and how the funds should be handled within probate.
Trying to handle this alone can lead to missed deadlines, denial of the claim, or avoidable litigation over who is entitled to the money.
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Disclaimer: This article provides general information under Pennsylvania law and does not create an attorney-client relationship. Laws change frequently. For legal advice specific to your situation, please consult with a licensed attorney.