How to Recover Surplus Funds from Tax Sales in South Carolina

Every year in South Carolina, properties are sold at delinquent tax sales for more than the back taxes owed. When that happens, the extra money — called surplus funds or overages — belongs to the former property owner. If that is you, this guide will explain how to get your money back.

How It Works

When your property is sold at a delinquent tax sale in South Carolina, several things happen:

1. The winning bidder pays the full amount on sale day
2. Taxes, assessments, penalties, and costs are paid from the proceeds
3. Any excess is retained by the delinquent tax collector as your surplus
4. You have a 12-month redemption period to buy the property back (Section 12-51-90)
5. If you do not redeem, a tax deed is issued to the buyer
6. Once the deed is issued, you must be notified in writing of any surplus owed to you

Who Gets the Surplus?

Under Section 12-51-130, the overage belongs to the owner of record immediately before the end of the redemption period. The surplus becomes payable 90 days after the tax deed is executed, unless another claimant files a judicial action during that period.

The Five-Year Deadline

This is critical: if the surplus is not claimed within five years of the date of the public auction tax sale, it escheats to the local government's general fund. After that, it is gone permanently.

Remember, the five-year clock starts at the auction date, not when the surplus becomes payable. By the time the 12-month redemption period passes and the 90-day waiting period ends, you may have already used up 15-16 months of your five-year window.

Steps to Recover Your Surplus

1. Contact the Delinquent Tax Collector in the county where the sale occurred.
2. Ask about your surplus — give them the property address, your name, and the sale date.
3. Check for your written notice — the tax collector was required to send you one after the tax deed was issued.
4. File your claim with proof of identity and ownership.
5. Collect your surplus after the 90-day waiting period.

A Unique Challenge in South Carolina

South Carolina's Family Privacy Protection Act (Section 30-2-50) prohibits using personal information from state agencies for commercial solicitation. This makes it harder for recovery companies to find and contact former property owners. But this law does not affect your right to claim your own surplus. You just need to know to ask.

The Tyler v. Hennepin County Decision

In 2023, the U.S. Supreme Court issued a unanimous ruling in Tyler v. Hennepin County that governments cannot keep surplus proceeds from tax sales beyond what is owed, finding this violates the Takings Clause of the Fifth Amendment. This landmark decision has significantly strengthened property owners' rights to surplus funds across the country. As of 2026, laws in this area are evolving rapidly as states update their statutes to comply with this ruling. It is more important than ever to understand your rights and act promptly.

Get Free Help

AuctionBlock.org is a mission-driven company dedicated to helping former property owners recover surplus funds for a flat $4,999 fee upon successful recovery. We can explain the process, help you gather documents, and guide you through filing your claim with the delinquent tax collector.

Contact AuctionBlock.org today — your surplus funds are waiting, but the five-year clock is already ticking.

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AuctionBlock.org is a mission-driven company providing surplus fund recovery assistance. This guide is for educational purposes only and does not constitute legal advice. Laws change frequently — always verify current statutes with a licensed attorney in your state. Last updated: April 2026.