Detailed Answer: How to claim surplus funds after a tax foreclosure sale in Texas

Short answer: If a tax foreclosure sale produced money left over after paying taxes, interest, penalties, and sale costs, the former owner or the person legally entitled to the owner’s interest (heirs, personal representative, or other claimants) may be able to recover those surplus funds. In Texas the practical steps are: confirm whether a surplus exists, identify the county office holding the funds, gather proof of your entitlement (proof of ownership or heirship, death certificate, letters testamentary or small‑estate documents), and file the county’s required claim or court action to get the funds. Because procedures and document requirements vary by county and the facts can be complex, consider getting local attorney help.

What happened at the sale and who can claim the surplus?

When a property is sold at a tax foreclosure (sale) the sale proceeds are first used to pay the delinquent taxes, penalties, interest, advertising and sale costs, and any other statutory liens paid by the taxing authority. If the sale price exceeds those amounts, the remaining money is a “surplus.” The people most commonly entitled to the surplus are:

The record owner of the property at the time of sale (or that owner’s successors in interest);
A person who had a recorded lien or other legal interest that has priority to claim the surplus;
An executor, administrator or other personal representative of the owner’s estate, or heirs who can prove entitlement under Texas succession law.

Where to look for records and who holds the money

Start with the county where the property is located. Key places to check:

County tax office / tax assessor‑collector: records of delinquencies, notices, and sale advertisements.
County clerk or recorder: the sale deed, deed records, and court files (if a judicial foreclosure occurred).
County sheriff or auction agent: sometimes handles the sale and may hold funds or direct where they were deposited.
County treasurer or auditor: often the office that actually disburses or holds surplus funds after the sale.

If a county holds surplus funds, the county will have its own process for releasing them. If funds were deposited into a court registry, you will likely need to file a court claim or application to withdraw them.

Step‑by‑step process to claim surplus funds in Texas

Confirm whether a surplus exists and how much. Obtain the sale adjudication, the auction report, and the county’s accounting showing sale price and amounts deducted for taxes, penalties, interest, and costs. County clerk or tax office staff can help locate these records.
Identify the holder of the funds. Ask the tax office, county treasurer/auditor, or county clerk whether the county or a court is holding the surplus. Get a written statement of where the funds are and the reference number or case file.
Gather proof of entitlement. Common documents the county will require include:
- Proof of identity for the claimant (government ID).
- Proof of ownership at time of sale (deed, recorded title documents).
- If the owner is deceased: a certified death certificate and proof of your status as heir or personal representative (letters testamentary or letters of administration, or an affidavit of heirship when allowed).
- If you claim by purchase or assignment: written assignment or lien documentation.
Follow the county’s claim procedure. Each county handles surplus claims differently. Some counties provide a surplus claim form at the tax office or county treasurer’s office. Other counties require you to file a petition in the district court or to present the claim to the county commissioners or court clerk. Ask the county which form to use and whether they need notarized originals or certified copies.
If county procedure requires court action, prepare to file. If the funds were paid into a court registry or county requires judicial approval, you (or your attorney) may need to file a petition in the appropriate Texas court asking for disbursement of surplus funds and attaching the proof of entitlement. The court will review competing claims and issue an order directing disbursement.
Be prepared for competing claimants. If someone else (a lienholder, purchaser, or another heir) files a claim, you may need to litigate in court. Maintain copies of all documents and records showing chain of title and obligations satisfied by the sale.
Collect the funds after approval. Once the county or court approves your claim, you will receive a check or electronic payment. Some counties require you to execute an indemnity or release before payment.

Special considerations when the property owner (your mother) is deceased

When the owner has died, the county will usually require proof of who is legally entitled before releasing surplus funds. That proof commonly includes:

Certified copy of the death certificate;
Letters testamentary or letters of administration issued by the probate court showing the personal representative’s authority; or
An affidavit of heirship or other proof of heirs if the estate is a small estate and Texas procedures allow distribution without formal probate. (Rules for affidavits and small‑estate procedures are found in the Texas Estates Code and local rules.)

If there is an open probate, the personal representative should include the surplus claim as an asset of the estate and request distribution through probate. If there is no probate and a certified heirship affidavit is suitable under local practice, heirs may use it to support a county claim.

Documents you will likely need

Certified copy of the county tax sale deed or sale record;
Accounting showing sale proceeds and deductions;
Owner’s deed or title showing your mother as owner;
Certified death certificate (if the owner is deceased);
Letters testamentary/administration or affidavit of heirship (as applicable);
Valid photo ID for claimant; and
Any written assignments or lien documents if you claim via assignment.

Timing, deadlines, and common obstacles

Timing and deadlines can matter. Counties differ in how quickly they distribute surplus funds and whether they impose claim deadlines or require court filings. Common obstacles include:

Failure to locate sale records or incorrect assumptions about where funds are held;
Multiple people claiming the same funds (heirs, purchasers, lienholders);
Absence of probate or lack of clear proof of heirship; and
Unpaid liens or other encumbrances that a court finds have priority over the surplus.

Because these obstacles can convert a straightforward county claim into a contested court case, act promptly and consider consulting a Texas attorney experienced in tax sales, probate, and real property.

Where to find authoritative information (statutes and local offices)

Helpful statewide resources:

Texas statutes and code: Texas Legislature Online — Texas Statutes (search for the Tax Code and chapters on sale and redemption): https://statutes.capitol.texas.gov/
General property tax guidance from the Texas Comptroller: https://comptroller.texas.gov/taxes/property-tax/

County offices to contact (replace with the county where the property is located): tax assessor‑collector, county clerk, county treasurer/auditor, and the sheriff/auction agent who handled the sale.

When to get help from an attorney or the probate court

Speak with a Texas attorney if any of these apply:

Someone else disputes your claim;
The county insists the funds were paid into a court registry and requires a petition;
The property owner died and you need to open probate or prepare an affidavit of heirship; or
The chain of title or priority of liens is unclear.

Helpful Hints

Start at the county tax office: staff there often know whether a surplus exists and which office handles it.
Ask for written confirmation (email or letter) from the county showing the sale accounting and where funds are held.
If the owner died, get a certified death certificate immediately — counties require it to process claims by heirs.
If you are an heir but there is no probate, ask the county whether an affidavit of heirship is acceptable or whether a probate administration is required.
Keep copies of every document you submit and get receipts for filings; counties sometimes require originals or certified copies for release of funds.
If the county directs you to file in court, hire or consult a local attorney experienced in tax‑sale or probate matters — contested surplus claims can turn into litigation.

Disclaimer: This information is for educational purposes only and is not legal advice. Laws and local procedures change. For advice about a specific situation, contact a licensed Texas attorney or the county offices where the property is located.