Excess Proceeds

Navigate: ClosedTax > Tax Sale > Property Sale > Excess Proceeds

Description

NOTE: Currently, this task applies to Riverside, California only.

Use this task to search for excess proceeds (also known as Overbid in Aumentum). Excess proceeds are those proceeds remaining after satisfaction of all of other amounts.

When a Property Tax Sale occurs in California, the buyer bids an amount over the minimum bid amount and whoever bids the most wins the item. If the amount ultimately paid for the item is more than the amount due plus the tax sale costs, it is considered Excess Proceeds. Since it is a property sale and not simply a certificate sale, the property changes hands at the end of the tax sale to whomever won the bid. The excess proceeds amount that is collected is then claimable by the owner of the property and any other interested parties (lien holders, banks, co-owners, etc.). Excess Proceeds are placed in a county account and notices are sent to all interested parties

Excess proceeds are retained in the delinquent tax sale trust fund for a period of one year following the date of recordation of the tax deed to the purchaser of the property. During the one-year period, the excess proceeds may be claimed by any party of interest in the property at the time of the sale. Parties of interest and their order of priority are as follows:

  • First, valid lien holders of record prior to recordation of the tax deed to the purchaser, in the order of their priority; and

  • Then, any person with title of record to all or any portion of the property prior to recordation of the tax deed to the purchaser.

In the event that more than one party of interest claim the excess proceeds, the board of supervisors establishes the priority and extent of their claims. The county does not distribute excess proceeds until 90 days after the division of the excess proceeds has been determined. The county processes the claims that are received by entering them into the system and then reviewing the information provided. The excess proceeds list is updated automatically based on claims submitted, approved, denied, and paid as well as rescissions.

When the appropriate amount of time has passed the excess proceeds surplus amount minus any costs the county has incurred is either refunded to the appropriate claimants or becomes unclaimable and is then moved to a county fund.

NOTE: For Tax Accounting, The system structures the Schedule of Reconciliation for the Excess Proceeds Trust Account as follows:

  • Breaks down the list of excess proceeds by claimable excess proceeds and unclaimed excess proceeds.

  • For each excess proceeds breaks down the data by:

    • Claimable/unclaimed excess proceeds. The Surplus Subcode differentiates unclaimable from claimable.

    • Assessment Number - The PIN that can be found by tracing from Surplus back through Tax Sale item to the Revenue Object ID.

    • Excess Proceeds Claimant Name - This comes from the Surplus claim table Contact Information, which comes from the CommRoleID table.

    • Tax Sale Number - The tax sale ID number which comes from the Tax Sale Item/Tax Sale ID table.

    • Item Number - The Tax sale item sequence number, which comes from the TaxSaleItem.SequenceNumber table.

    • Claim Status - The status of the claim, which comes from the Surplus Claim table.

    • Excess Proceeds Amount - The original amount that went to Excess Proceeds, which comes from the TaxSaleItem.OverbidAmount table. Claim Amounts also exist in the Surplus Claim table.

Steps

  1. On the Search Excess Proceeds screen, search for and select the excess proceeds.

  2. Select from the search results and click Surplus Mgmt to navigate to the Manage Surplus screen on which you can manage the surplus subcode of any surplus payment, including a suspense payment, that needs to be reassigned. You can work with a single surplus or apply a subcode to multiple (or all) suspense surpluses.

  3. Select from the search results and click Next to navigate to either:

    • Maintain Claim screen on which you can maintain claim details for a claim against a payment, add attachments to the claim, such as supporting document and image files, process the claim for refund posting, and view historical details about the claim. Maintain the claim as applicable, click Save and Close to end the task.

    • Add Claimant if you select an item against which no claimant has been associated. Select the Name from the Search Results and click Return to return to this screen or click New to create a new claimant to associate with the claim. When you select the item again and click Next, you will navigate to the Maintain Claim screen to process the claim.

      • From the Add Claimant screen, you can advance to the Claimant Name and Address screen to define name/address details.

Configuration, Prerequisites, Setup

Set the Property Sale Secured Application Setting of Excess Proceeds Claim Term (# of months) to the applicable number of months to define the Filing Deadline. The Filing Deadline is the Deed Recorded Date set for the tax sale plus the number of months that you define for this application setting.  Set this up via Tax > Tax Sale > Property Sale > Property Sale Settings > Maintain Property Sale Settings.