How to Recover Surplus Funds in St. Johns County, Florida: County-Level Guide

Understanding Tax Sale Surplus Funds in St. Johns County

When real property in St. Johns County, Florida, accumulates unpaid property taxes, the local tax collection framework eventually leads to a public auction known as a tax deed sale. Under Florida law, if the winning bid at a tax deed auction exceeds the statutory minimum bid—which includes delinquent taxes, interest, administrative fees, and costs—a financial excess is generated. This remaining money is referred to as tax sale surplus funds or excess proceeds.

Surplus funds belong to the parties who held legal rights or equitable interests in the property prior to the sale. However, recovering these funds requires navigating specific legal deadlines, administrative rules, and statutory priorities established by the State of Florida and administered locally in St. Johns County.

Which County Office Handles Surplus Funds?

In Florida, county roles in tax enforcement are split between two primary constitutional officers:

1. The Tax Collector: Responsible for collecting annual property taxes and selling tax certificates to investors when taxes become delinquent.
2. The Clerk of the Circuit Court and Comptroller: Responsible for administering tax deed applications, conducting the actual tax deed public auctions, receiving bid funds, and distributing excess proceeds.

In St. Johns County, the Clerk of the Circuit Court and Comptroller oversees the tax deed sale process and manages the disbursement of surplus proceeds. Former property owners and lienholders seeking to recover surplus funds must submit their claims directly to the Clerk's Official Records / Tax Deed Department, rather than the Tax Collector's Office.

How St. Johns County Publishes Tax Sale and Surplus Lists

Florida law requires transparency throughout the tax deed foreclosure process. St. Johns County publishes tax sale notices and delinquent property details through multiple channels:

• Local Newspaper Publication: Notice of a tax deed sale is advertised once per week for four consecutive weeks prior to the auction in a newspaper of general circulation within St. Johns County, typically The St. Augustine Record.
• Online Auction Portals: Tax deed sales in St. Johns County are generally conducted online via an electronic tax deed auction platform operated on behalf of the Clerk.
• Clerk’s Official Website: The Clerk of the Circuit Court maintains records of upcoming tax deed auctions, historical sale results, and notices of unclaimed surplus funds on its official website.

Following a completed tax deed auction, the Clerk processes the Tax Deed, records the transfer of title, calculates the final surplus balance, and issues notices to all parties who held an interest of record in the property prior to the auction.

Florida Legal Framework and Governing Statutes

The governing authority for tax deed sales and the distribution of surplus funds in St. Johns County is established under Chapter 197 of the Florida Statutes, with primary focus on Florida Statutes § 197.582.

Under F.S. § 197.582, the Clerk must retain excess proceeds from a tax deed sale for the benefit of persons legally entitled to them. Recent amendments to Florida tax deed legislation have standardized the timelines and procedures for claiming surplus proceeds:

• Notice of Surplus: Upon the conclusion of the sale and determination of excess proceeds, the Clerk sends a formal Notice of Surplus Funds to all potential claimants identified in the tax deed title search report.
• Claim Window: Claimants must file a formal claim with the Clerk within 120 days from the date the Clerk mails the Notice of Surplus.
• Transfer of Unclaimed Proceeds: If surplus funds remain unclaimed after the statutory holding period, the funds are handled in accordance with Florida's Disposition of Unclaimed Property Act (Florida Statutes Chapter 717), eventually escheating to the State of Florida Chief Financial Officer.

Priority of Claims: Lienholders vs. Former Owners

Surplus proceeds are not automatically disbursed to the former titled property owner. Florida law establishes a strict statutory hierarchy regarding who gets paid first from tax deed surplus funds:

1. Governmental Tax Liens and Costs: First priority is given to satisfy outstanding municipal or county tax liens, municipal utility liens, or code enforcement liens recorded against the property.
2. Subordinate Lienholders: Junior mortgagees, judgment creditors, mechanics' lienholders, and home owners associations (HOAs) that held recorded liens prior to the tax deed sale maintain priority over the former owner. These lienholders must file timely claims proving the balance owed on their encumbrance.
3. Former Record Title Owners: The person or entity holding legal title to the property on the date the tax deed application was filed (or as reflected in the official records prior to the sale) is entitled to any remaining funds only after all senior lienholder claims have been fully satisfied or barred by time limits.

If junior lienholders fail to submit a timely claim within the 120-day window following notice, their right to claim the tax deed surplus may be forfeited, allowing the former title owner to receive the funds.

Step-by-Step Local Claim Procedure in St. Johns County

To petition the St. Johns County Clerk of Court for surplus funds, claimants must complete a formal administrative process:

1. Obtain the Official Claim Form: Secure the Claimant’s Statement of Claim for Tax Deed Surplus form directly from the St. Johns County Clerk of the Circuit Court and Comptroller's office or website.
2. Complete Required Identification and Documentation: Former owners must provide a government-issued photo ID (driver's license or passport) and proof of residency or ownership at the time of the tax sale. Lienholders must supply verified statements of account, original or certified copies of mortgage notes, and recorded lien documentation.
3. Notarization: The claim form must be executed under oath and signed in the presence of a licensed Notary Public.
4. Submit to the Clerk: Deliver the completed, notarized claim form along with all supporting documentation to the St. Johns County Clerk of Court Tax Deed Department.
5. Review and Audit: The Clerk evaluates the claim against the official record, title search, and other filed claims. If competing claims exist, the Clerk may schedule a judicial interpleader action or court hearing to determine entitlement.

Assignment Contracts and Third-Party Recovery

Former owners are often approached by private surplus recovery firms or asset recovery agents offering to assist in retrieving surplus funds in exchange for a percentage fee. Under Florida law, these assignment agreements are heavily regulated:

• Third-party recovery agreements must clearly disclose the total amount of surplus funds available before the owner signs.
• Contracts must specify the exact fee charged by the representative, which is subject to statutory caps under state law.
• Former property owners retain the right to submit a surplus claim directly to the St. Johns County Clerk of Court without hiring a third-party agent or paying a fee.

Common Pitfalls in St. Johns County Claims

• Missing the 120-Day Window: Failing to submit a verified claim within the statutory timeframe can result in loss of priority or forfeiture of funds.
• Filing with the Wrong Entity: Sending claim forms to the St. Johns County Tax Collector instead of the Clerk of the Circuit Court delays processing.
• Unresolved Probate Issues: When the owner of record is deceased, heirs cannot simply file a claim without proper probate documentation or court order establishing legal authorization.
• Incomplete Documentation: Submitting forms that lack notarization, valid photo identification, or supporting lien payoff calculations will lead to immediate rejection by the Clerk.

Legal Disclaimer

Disclaimer: This article is provided solely for educational and informational purposes and does not constitute legal advice. Tax sale laws, local court procedures, and statutory deadlines are subject to change. Property owners and lienholders seeking to recover surplus funds in St. Johns County, Florida, should consult a licensed Florida real estate attorney or contact the St. Johns County Clerk of the Circuit Court for specific legal guidance.

Official Tax Sale List

St. Johns County tax sale list