Detailed Answer

When a county sells real property for unpaid taxes in South Carolina, the sale can produce more money than is needed to pay the delinquent taxes, interest, penalties, and sale costs. That excess amount is called a surplus (sometimes called an overage). Under South Carolina law, the surplus belongs to the person(s) who had an interest in the property immediately before the tax sale (typically the former owner or certain lienholders), subject to any superior liens or legal claims.

The general legal framework for tax collections and sales in South Carolina is found in Title 12 of the South Carolina Code. See South Carolina Code, Title 12 (Taxation): https://www.scstatehouse.gov/code/title.php?title=12 and the chapters governing tax sales and collections: https://www.scstatehouse.gov/code/t12c051.php. County procedures may vary, so you should also check your county treasurer’s or clerk’s office for local forms and specific steps.

Who can claim the surplus?

• The owner of record at the time of the tax lien or at the time of sale (depending on local practice).
• Certain lienholders with recorded liens that are senior to the tax lien.
• Heirs, personal representatives, or transferees who can prove they hold the owner’s interest.

High-level process

1. Confirm a surplus exists. Contact the county treasurer, tax collector, or the office that conducted the sale and request a written accounting of the sale showing the sale price, the amount needed to satisfy taxes/fees, and the remaining surplus.
2. Identify the correct claimant. Determine who had legal interest in the property before the sale (owner, mortgagee with a superior lien, heirs, etc.).
3. File a claim for the surplus with the county office or court that handles surplus distributions. Counties frequently require the claimant to file a written claim or petition and provide supporting documents.
4. Provide documentation. Typical documents include government ID, deed or other proof of ownership, chain-of-title documents, a copy of the recorded deed showing ownership at the relevant time, proof of lien priority (if applicable), and any death or probate documents if the owner is deceased.
5. Wait for review and distribution. The county will review competing claims (if any). If multiple parties claim the funds, the county may hold the money until the dispute is resolved or may require a court order directing distribution.
6. If denied or disputed, pursue court action. If the county refuses to release funds or competing claims exist, a claimant may need to sue (for example, file a petition in the appropriate South Carolina court) to obtain an order directing distribution of the surplus.

Where to file and whom to contact

Start with the county office that conducted the tax sale — usually the county treasurer, tax collector, county auditor, or the clerk of court. If the county transferred funds to the clerk of court or to a special funds office, follow that office’s claim procedures. County websites commonly publish claim forms and contact information.

Time limits and competing claims

Time limits, notice requirements, and exact claim procedures vary. South Carolina statutes in Title 12 establish the procedures for tax collections and sales; local rules and case law govern distribution practice in some counties. If more than one party files a claim, the county may require the parties to resolve priority in court. Because statutes and deadlines can affect rights, act promptly after learning of a surplus and check local rules.

Example (hypothetical)

Hypothetical facts: A property was sold at a county tax sale for $100,000. The total tax debt, penalties, interest, and sale costs equal $70,000. The sale produced a surplus of $30,000. The former owner (named on the deed at the time of the sale) files a claim with the county treasurer and provides a copy of the recorded deed, government-issued photo ID, and a notarized affidavit that they were the owner at the time of the sale. The county confirms the surplus and, after verifying there are no superior lienholders with valid claims, releases the $30,000 to the former owner after completing required paperwork.

Helpful Hints

• Contact the county promptly. The county that conducted the sale is the first and best source for whether a surplus exists and what exact paperwork is needed.
• Gather title documents early. Deeds, mortgages, recorded liens, probate paperwork, and any transfer documents will speed up a claim and help prove entitlement.
• Get certified copies. Counties often require certified copies of recorded documents and certified letters or death certificates if claiming as an heir or personal representative.
• Watch for competing claims. Lenders, judgment creditors, or subsequent purchasers may assert rights to the surplus. If you expect disputes, consult an attorney quickly.
• Require a receipt. When the county releases funds, get a written receipt and retain copies of all filings and correspondence.
• Consult an attorney for disputes. If the county refuses payment or a competing claimant appears, an attorney can advise whether to file a court petition to resolve entitlement and obtain a court order directing distribution.
• Check statutes and local rules. Review South Carolina’s tax collection statutes (Title 12) for the statutory framework: https://www.scstatehouse.gov/code/title.php?title=12 and the chapters on tax sales and collections: https://www.scstatehouse.gov/code/t12c051.php.