Surplus funds / excess proceeds
The difference between what a property sells for at auction and what was actually owed in back taxes. Since the 2023 Supreme Court ruling in Tyler v. Hennepin County, states must return this surplus to the former owner rather than keeping it. See our article on surplus funds for the full breakdown.
See how this plays out in a specific state: browse all 50 states, or check the full glossary for related terms.
General definition — exact terminology and mechanics vary by state and county. Always confirm against the specific county's own auction notice before bidding.