Connecticut Gives You 90 Days From Deposit — Not From the Sale

Connecticut forecloses tax liens through a foreclosure-by-sale process under Connecticut General Statutes § 12-157, with a court-appointed committee running a public auction rather than the municipality selling the property directly. A separate track — foreclosure by market rate under § 12-181 — covers smaller liens differently, but the excess proceeds question centers on § 12-157 sales.

The municipality can only keep the debt — not the equity

When a Connecticut municipality forecloses a tax lien nonjudicially or through the committee sale process, it's only entitled to retain the tax debt plus interest and the costs of running the auction. Any amount above that is surplus, and it belongs to the former owner or other parties whose interest in the property was wiped out by the sale — a principle Connecticut courts affirmed independent of federal pressure, reinforced further by the Tyler v. Hennepin County ruling nationally.

Three things a claim has to satisfy

Recovering the surplus requires: filing an application with the court, doing so within the statutory window, and establishing standing as an interested party — a mortgagee, the former owner, or an heir. The court is specific about who counts: only record owners and encumbrancers whose interests were extinguished by the sale can claim, not general creditors or unrelated third parties.

The 90-day clock starts at deposit, not at sale

This is the detail worth being precise about: the 90-day window to file runs from the date the proceeds are deposited with the court, not from the date of the auction itself. Depending on how quickly the committee finalizes the sale and deposits funds, there can be a real gap between "the property sold" and "the clock started" — worth confirming the deposit date directly rather than assuming it matches the sale date.

Older liens and the 15-year outer limit

Separately, Connecticut tax liens themselves remain valid for 15 years under CGS § 12-175 unless foreclosed or discharged before then — a long horizon compared to most premium-bid certificate states, and a reminder that a Connecticut lien can sit unresolved far longer than in states like Nevada or Missouri before it ever reaches the foreclosure-and-surplus stage at all.

This article is general information, not financial or legal advice. Confirm current procedures with the court handling the specific foreclosure and the deposit date of the sale proceeds. See our broader guide on surplus funds after a tax sale and the Connecticut state page for lien and redemption mechanics.