New York · money left over after a tax-deed sale

You can claim it yourself, no finder needed

Who holds it

The court that handled the tax foreclosure. The enforcing officer pays the surplus to the court

How long

For homes, if no former homeowner has claimed by the time the sale report is confirmed, the case stays open at least 3 years after confirmation. Unclaimed surplus then goes to the local tax district

How you claim

File a claim for the surplus with the court that handled the tax foreclosure, using the court system's Tax Foreclosure surplus monies forms (a notice of claim and a motion to release surplus). The 2024 law covers properties sold on or after May 25, 2023; earlier sales generally don't qualify unless an Article 78 case was pending on April 20, 2024. Some transfers to a land bank or public entity after two failed auctions produce no surplus.

If someone offers to do it for you

Checklist: New York, money left over after a tax-deed sale

Who holds it: The court that handled the tax foreclosure. The enforcing officer pays the surplus to the court

How long: For homes, if no former homeowner has claimed by the time the sale report is confirmed, the case stays open at least 3 years after confirmation. Unclaimed surplus then goes to the local tax district

How you claim: File a claim for the surplus with the court that handled the tax foreclosure, using the court system's Tax Foreclosure surplus monies forms (a notice of claim and a motion to release surplus). The 2024 law covers properties sold on or after May 25, 2023; earlier sales generally don't qualify unless an Article 78 case was pending on April 20, 2024. Some transfers to a land bank or public entity after two failed auctions produce no surplus.

Your deadline: ____________ (confirm it with the clerk)

Steps

  1. Watch for the enforcing officer's notice. It must be sent within 10 days after the officer reports the surplus to the court
  2. Get the Tax Foreclosure surplus monies forms from nycourts.gov
  3. File a Notice of Claim and a motion to release surplus monies in that court case
  4. Serve the other parties as the forms require
  5. The court decides who gets the money, sometimes through a referee, and orders payment

Documents

What it costs you

Not researched yet — ask the clerk

If someone offers to do it for you

Official links

Source: N.Y. Real Property Tax Law § 1196; N.Y. Real Property Tax Law § 1197; N.Y. Real Prop. Tax Law §1136; N.Y. Real Prop. Tax Law §1197; N.Y. Abandoned Prop. Law §1416; N.Y. Jud. Law §489; N.Y. Real Prop. Law §265-b; N.Y. Jud. Law §489(2); N.Y. Gen. Oblig. Law §5-501. Researched, not yet checked by a lawyer; confirm with the clerk. Not legal advice.