California Excess Proceeds: How the Claim Works in Los Angeles, San Diego, Orange and Every County
About this article: “Marcus” is TaxLienSimple's educational narrator. First-person stories and dollar examples are illustrative scenarios written to explain real tax-sale concepts, they are not the personal trading history of a specific investor. Rate and legal information is sourced separately to official statutes and government records (see About and each guide's citations).
TL;DR
- →In California, money left after a tax-defaulted property sale is called excess proceeds. Parties of interest, meaning lienholders and the owners of record, can claim it from the county under Revenue and Taxation Code section 4675.
- →The deadline is one year after the tax deed to the buyer is recorded. Under the statute, a claim postmarked on or before that date is on time, though some county forms say the claim must be received, so mail early.
- →When excess proceeds exceed $150, the county must give notice to parties of interest. If it cannot find an address, it must publish notice within 90 days of the sale.
- →The county board of supervisors, or an officer it delegates, approves or denies claims. Anyone challenging the decision has 90 days to go to court.
- →Anyone filing for an owner must show the owner was told they can claim for free, and an assignment must be in writing and disclose the value of the claim. TaxLienSimple tracks 3,032 California records worth $98.6 million.
What California excess proceeds are
When California property taxes stay unpaid long enough, the property becomes tax-defaulted and the county treasurer-tax collector can sell it at a tax sale, usually an online auction. If the property sells for more than the taxes, penalties and costs, the difference is excess proceeds.
California law says who can claim that money and how. The rules are in the Revenue and Taxation Code, mainly sections 4674 to 4676. Lienholders of record and the owners of record are parties of interest who can claim, and each county runs its own claim process under those rules.
California is one of the largest states in our data by dollars. TaxLienSimple publishes 3,032 California excess proceeds records worth about $98.6 million, with a median record of $4,480. Los Angeles County alone accounts for 1,903 of them. You can browse them on our California surplus funds list.
The key rules, in one table
These come from the statute and from county claim forms. Counties add their own procedures, so read your county's instructions too.
| Rule | What it says | Source |
|---|---|---|
| Who can claim | Parties of interest: lienholders of record and owners of record, in proportion to their interest | R&T 4675(a) |
| Deadline | One year after the tax deed to the purchaser is recorded | R&T 4675 |
| On-time filing | The statute treats a claim postmarked on or before the deadline as timely; some county forms say received, so mail early | R&T 4675(a)(2); county forms |
| Notice | When excess proceeds exceed $150 the county gives notice; if no address, it publishes within 90 days of the sale | R&T 4676 |
| Who decides | The board of supervisors, or a county officer it delegates | R&T 4675, 4675.1 |
| Challenging a decision | Court action within 90 days of the decision | R&T 4675(g) |
| Agents and assignments | Must show the owner was told they can claim for free; assignment in writing disclosing the claim's value | R&T 4675 |
How to file a California excess proceeds claim
1. Find the record. Each county treasurer-tax collector posts its excess proceeds list or notices after each sale. Los Angeles, San Diego and Orange counties each publish their own. Our California list collects the counties we track, linked to each source.
2. Check the deadline. Find when the tax deed was recorded and count one year. If you received the county's notice, it states the deadline.
3. Get the county's claim form. Most counties use the state's standard claim form for excess proceeds, sometimes with a county cover page.
4. Gather proof of your interest. Owners: proof of ownership of record at the time of the sale, such as the recorded deed, and identification. Lienholders: the recorded lien and proof of the amount owed. Heirs of a deceased owner: probate papers or the affidavit the county accepts.
5. Mail it early, with proof of mailing. Use certified mail or an approved delivery service. The statute protects a claim postmarked by the deadline, but do not rely on the last day.
6. Wait for the board decision. Claims are usually considered after the one-year period ends, so all claims can be compared. The county then pays approved claims, in priority order.
Watch how it works
A narrated walkthrough: what surplus funds are and how recovery agents earn a fee, then find open surplus funds from county lists, check the parties and state rules, and track the claim to payout.
Read the transcript
Before I show you the dashboard, here's what surplus funds are, and why people make a living from them.
When someone falls behind on property taxes, the county can sell the property at auction.
Say the owner owed eight thousand dollars, and the home sold for ninety-five thousand.
The county keeps what it's owed. The other eighty-seven thousand is surplus, and by law, it belongs to the former owner.
Most owners never find out. They've moved, or they don't know the money exists. And if nobody claims it in time, it can go to the state.
That's where you come in. You find the owner, check that no one is owed ahead of them, and help them file the claim. They get their money, and you earn an agreed fee.
Owners can always claim for free on their own, and many states limit your fee. So the work is finding them, and making it easy.
TaxLienSimple tracks over one hundred and ninety million dollars of it across eighteen states, updated every day. Here's how to find a record, and work it all the way to payout.
This is TaxLienSimple. In the next few minutes, I'll find a surplus fund, check that it's worth working, and track it all the way to payout.
Start in County Data, on the Surplus funds tab. Every number here comes from the county's own list, and you can see how much is still open.
Open a state to see each county: the total, what's still open, the largest record, and the nearest deadline.
Search records takes you straight to those records.
Here in Research, you can narrow it down. I'll keep the open records, set a deadline within ninety days, and sort by the largest amount.
Open a record to see the detail.
Here's the amount, the claim deadline, and the former owner. Below that is everyone on the case. Lienholders and government claims can be paid before the owner, so check them first.
Every record shows the state's rules: how long the claim window is, any limit on your fee, and what you must tell the owner.
If it's worth working, add it to My claims.
Your claims live on one board, by stage. The top shows what you're working, your expected fees, and what's due this week.
Open the claim. The deadline countdown sits at the top.
From here you can search for the former owner by name and mailing address. Anyone matching the auction buyer is left out, because that's the wrong person.
Note who you're working with, and set a follow-up date. You'll get a reminder email that morning.
Every call, email, and letter goes in the contact log, so you never lose track.
Enter the fee you agreed. TaxLienSimple holds it to the state's limit, and shows what you'll earn.
Print a first letter in one click. Every letter tells the owner they can claim from the county for free.
The recovery agreement prints the state's fee limit and the required disclosure, and it won't print a fee above that limit.
Keep the paperwork here: photo ID, death certificates, the signed agreement. Only you can see it.
Move the claim along as it progresses. When the county pays, record the amount and your fee.
That's the whole workflow, from finding the money to getting paid, in one place.
Watch the lesson: TaxLienSimple Academy
California tax sale guide
California generally sells tax-defaulted property after a statutory waiting period; it does not sell tax lien certificates.
Where the money is in California
California excess proceeds are concentrated in a few large counties. Los Angeles dominates the count, San Diego and Orange follow, and several smaller counties hold a few large records. Many records on county lists are already past their one-year window, so check the deadline on every record before acting.
If you are helping an owner
California does not set a percentage cap on recovery fees in section 4675, but it does set conditions. Anyone filing a claim for an owner must show the owner was told they can claim the money themselves for free. An assignment of the right to excess proceeds must be in writing and disclose the value of the claim. Counties look closely at assignments, and a board can deny a claim that does not meet these conditions.
Use a clear written agreement, give the owner a copy, and keep proof that you disclosed the free option. Our recovery agent guide and the Fair Recovery Kit cover the rest.
If the owner of record has died
Many California excess proceeds records belong to owners who have died, which is often why the taxes went unpaid. Heirs can still claim, but the county needs proof of who has authority for the estate.
County claim instructions generally accept one of these: letters testamentary or letters of administration from a California probate court naming a personal representative; a court order from a small estate or spousal property proceeding; or, where the county allows it, an affidavit of heirship with the death certificate and records showing the family relationship. California's small estate procedures have dollar limits, so check the current limit and the county's instructions before you choose a route.
Start the estate paperwork early. The one-year claim deadline does not pause for probate, so if time is short, ask the treasurer-tax collector how to file a timely claim while the estate is being opened. Our guide to surplus funds when the owner has died covers the process in more detail.
Common mistakes
- Counting from the sale date. The one-year clock runs from the recording of the tax deed, not from the auction.
- Mailing on the last day. The statute protects a timely postmark, but some county forms say received. Mail early with tracking.
- Missing proof of interest. A claim without the recorded deed or lien is usually denied or delayed.
- Ignoring lienholders. Lienholders of record are paid according to their interest. Do not assume the full amount goes to the owner.
- An assignment without the disclosures. A board can deny a claim filed under an assignment that does not disclose the claim's value or the free option.
Frequently Asked Questions
Common questions about California excess proceeds.
Frequently Asked Questions
How long do I have to claim excess proceeds in California?↓
One year after the tax deed to the purchaser is recorded. The statute treats a claim postmarked on or before that date as timely, but mail early because some county forms say the claim must be received.
Who can claim excess proceeds in California?↓
Parties of interest: lienholders of record and owners of record at the time of the sale, in proportion to their interest. Heirs of a deceased owner can claim with probate papers or the affidavit the county accepts.
Where is the Los Angeles County excess proceeds list?↓
The Los Angeles County Treasurer and Tax Collector publishes excess proceeds information for its tax sales. TaxLienSimple's California list includes Los Angeles County records with a link to the county's source.
How long does it take to get California excess proceeds?↓
Claims are usually decided after the one-year claim period ends, by the board of supervisors or a delegated officer, and approved claims are then paid. Expect several months after the deadline.
Can a company charge a fee to recover California excess proceeds?↓
Section 4675 does not set a percentage cap, but anyone filing for an owner must show the owner was told they can claim for free, and an assignment must be in writing and disclose the claim's value.
What is the difference between excess proceeds and surplus funds?↓
They are the same kind of money. California law calls it excess proceeds; other states call it surplus funds, excess funds or overages.
Keywords this article targets
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More in Surplus Funds
- How to Claim Surplus Funds in Florida: Tax Deed and Foreclosure Surplus, Step by Step →
- How to Claim Surplus Funds After a Foreclosure: A Step-by-Step Guide for Former Owners →
- Surplus Funds Courses Compared: Overages Blueprint vs Surplus Funds Profit System (2026) →
- Is Surplus Funds Recovery Legit? Red Flags, Scams and the Fee Caps in Every State →
- How Long Does It Take to Get Surplus Funds? Claim Windows and Payout Times by State →
- Tyler v. Hennepin County, Three Years On: What It Means for Surplus Funds and Home Equity →
- Tax Sale Overages vs Foreclosure Surplus Funds: Who Holds the Money and Who Can Claim It →
- Surplus Funds When the Owner Has Died: How Heirs Claim, and What Agents Need to Know →
- Georgia Excess Funds: How Tax Sale Claims Work Under O.C.G.A. 48-4-5 →
- Texas Excess Proceeds: How Tax Sale Claims Work, and Why Only Attorneys Can Charge →
Learn more in the TaxLienSimple Academy
What a tax deed is: you can own it
A tax deed sale transfers ownership, or the right to pursue it, not just a claim, the risk and diligence bar is higher than a lien.
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