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Losing land at a tax sale is one of the most painful ways to lose property — often it happens quietly, through a missed notice, an outdated mailing address, or simply not knowing that back taxes had gone unpaid for years. We see this when a spouse has died that typically handled paying the bills and the surviving spouse feels lost or is grieving too much to focus on responsibilities. But there's a detail many former owners never learn until much later: if the property sold for more than what was owed in taxes, penalties, interest, and costs, that extra money — the excess proceeds — doesn't just disappear into the state's general fund. In most cases, the former owner, or their heirs, has a legal right to claim it.

At Duty Law, we help Arkansas families track down and recover excess proceeds after a tax sale, and we help people understand this often-overlooked right before a claim deadline quietly expires. This page explains how excess proceeds work in Arkansas, who is entitled to claim them, and the practical steps — and common mistakes — involved in getting that money back.

How Land Ends Up at a Tax Sale in Arkansas

When property taxes go unpaid, Arkansas counties eventually certify the delinquent parcel to the Commissioner of State Lands. Once certified, legal title to the property effectively passes to the State of Arkansas, held in the Commissioner's care, though the state doesn't take physical possession or maintain the property. The Commissioner is then responsible for either collecting the delinquent taxes or, if they remain unpaid, selling the property at a public auction.

Before a sale happens, Arkansas law requires the Commissioner to send notice to the owner of record and to anyone else with a recorded interest in the property. Still, notices get missed all the time: an owner moves and never updates their mailing address with the county, a homeowner passes away and heirs don't know a tax bill exists, or a notice simply gets lost in the mail. By the time a family discovers a tax sale, the property is often already gone.

After the auction, the Commissioner issues the winning bidder a deed, and the former owner is entitled to recover excess proceeds, if any.

What Are Excess Proceeds?

Excess proceeds are the difference between what a property sold for at auction and the total amount actually owed on it — the delinquent taxes, penalties, interest, fees, and costs of the sale. If a home with $4,000 in back taxes and costs sells at auction for $60,000, the roughly $56,000 difference is excess proceeds. That money doesn't belong to the state, and it doesn't belong to the buyer. Arkansas law directs those proceeds to be held for the benefit of the former owner, and this is true whether the sale happened at the Commissioner's public auction or at a subsequent post-auction sale of unsold property.

This is a right that surprises a lot of people, precisely because so few former owners ever hear about it. If your home, a vacant lot, farmland, or inherited acreage was sold out from under you or a family member for unpaid taxes, it's worth checking whether that sale generated excess proceeds — because if it did, that money may still be sitting there waiting to be claimed.

Who Can Claim Excess Proceeds

Arkansas law is specific about who qualifies, and claims are evaluated strictly against these requirements.

• The former owner. The person or entity that held record title to the property at the time it was certified to the Commissioner as tax-delinquent is the primary party entitled to claim excess proceeds. 

• Heirs of a deceased former owner. If the former owner has since passed away, their heirs generally qualify to claim on the estate's behalf. Claiming as an heir requires additional documentation: a death certificate for the former owner, relevant probate records, the claimant's own birth certificate establishing the relationship, and sometimes an affidavit of heirship from a disinterested third party.

Because Arkansas requires these documentation requirements to be met strictly, claims that don't check every box are typically denied outright rather than being approved with conditions. This is one of the main reasons families benefit from legal help before submitting a claim, rather than after receiving a denial.

Understanding the Timeline

Getting the timing right is critical, because excess proceeds don't stay available forever.

• A one-year holding period follows the sale. After a deed is issued to the successful bidder, the excess proceeds are held for one year before a former owner's claim can be paid out. During this window, the funds are first used to satisfy any amounts owed to the Commissioner for penalties, fees, and sale costs, and to reimburse the county for the delinquent taxes, interest, and costs originally owed — only the true excess remains available to the former owner.

• The claim window that follows depends on when the parcel was sold. The claim window is generally two years. You may confirm the precise expiration date with the Commissioner of State Lands.

• After the applicable window closes, unclaimed funds are returned to the county. Once that happens, recovering the money becomes significantly more difficult, and in many cases the opportunity to claim it is lost entirely.

Because these deadlines are measured from the date of sale — not from the date a family happens to learn the property is gone — the clock can already be running by the time anyone realizes there's money to claim. This is exactly why we encourage anyone who has recently learned that a family member's property was sold at a tax auction, even years ago, to check on excess proceeds sooner rather than later.

How to Search for and Claim Excess Proceeds

1. Search by name. The Commissioner of State Lands maintains a public database that can be searched by the property owner's last name to check whether excess proceeds exist for a particular parcel. The Arkansas website is available at www.cosl.org

2. Request the claim form. If a search turns up funds under the former owner's name, a claim form can be requested directly through the Commissioner's office.

3. Gather your documentation. At minimum, this typically includes proof of identity, documentation establishing record ownership at the time of the sale, and — if claiming as an heir — you will need additional heirship documents.

4. Submit the completed application. The Commissioner reviews the application against the statutory requirements before approving any distribution. Submission of a claim does not guarantee it will be approved — incomplete or unsupported claims are routinely denied. It is important to preserve time and complete the steps early to avoid losing funds to the State Treasury. 

5. Wait for review and distribution. Processing isn't instantaneous, particularly for heir claims requiring additional verification, so it's worth following up periodically rather than assuming silence means the claim is progressing.

Tips for Former Owners Trying to Recover Excess Proceeds

Check even if you assume there's nothing to find. Many former owners assume a tax sale means a total loss, and never think to check whether the sale price exceeded what was owed. Given how tax auctions work — competitive public bidding, sometimes on desirable land — excess proceeds are common, not rare.

Don't wait to search until you're "ready" to deal with it. The two-year claim window runs from the date of sale, not from whenever a family gets around to looking into it. If a relative's property was sold at a tax auction within the last few years, treat checking for excess proceeds as time-sensitive, not optional.

Start gathering heirship documentation early if the former owner has passed away. Death certificates, probate records, and affidavits of heirship can take time to track down, especially for older estates that were never formally probated. Starting this process as soon as possible protects you from running the claim window out while paperwork is still being assembled.

Confirm you actually qualify as an heir before assuming the money is yours. Because Arkansas limits claims, feeling entitled to the property or proceeds does not grant authority. In these situations, opening a probate estate for the former owner may be a necessary step before a proper claim can be made.

Update your address with the county now, to prevent this from happening again. If you currently own other property, this situation is a strong reminder to keep your mailing address current with the county assessor and collector, so that any future delinquency notices — and any right to redeem before a sale even occurs — actually reach you.

Be precise and complete on the application. Because the Commissioner's office evaluates claims strictly against the statutory requirements, a claim with a missing document or an unclear ownership chain is more likely to be denied than approved with a request for more information. Getting it right the first time matters.

Get help before, not after, a denial. If a claim has already been submitted and denied, or if the situation involves multiple potential heirs, a disputed estate, or an unclear chain of title, legal assistance becomes even more valuable — untangling those issues after a denial is possible, but it's almost always more efficient to address them up front. Your attorney may be booked and unable to help before the deadline passes. Seeking experienced help as soon as possible is your best route to ensure you don’t miss out.

Don't assume the property itself can still be recovered. Once the redemption period after the sale has closed and a limited warranty deed has been issued, the property itself generally cannot be reclaimed by the former owner — the excess proceeds, not the land, become the available remedy. 

Consider whether the underlying sale itself may have been improper. If notice requirements weren't properly followed there may be legal grounds to challenge the sale itself, separate from an excess proceeds claim. These challenges are subject to strict, short deadlines, so this possibility should be evaluated as early as possible.

Common Questions

How do I know if there are excess proceeds available for a property I lost? The most direct way is to search the Commissioner of State Lands' excess proceeds database by the former owner's last name. We can also help confirm whether funds are being held and walk through what documentation will be needed to claim them. The Commissioner’s website is www.cosl.org

The former owner has passed away — can I claim on their behalf? Possibly, if you are a parent or child of the former owner and can provide the required documentation, including a death certificate, relevant probate records, your own birth certificate, and typically an affidavit of heirship. More distant relatives generally cannot claim directly and may need to pursue the estate through probate first.

What if I missed the claim deadline? Once the applicable two-year window has closed, the funds are returned to the county, and recovering them becomes far more difficult. If you believe you're close to a deadline, treat it as urgent rather than waiting.

Can I get the property back instead of just the money? In most cases, no — once the redemption period has passed and the sale has been finalized with a deed to the buyer, the property itself is no longer recoverable by the former owner. The exception is a successful legal challenge to the validity of the sale itself, which is a different and more difficult process governed by its own strict deadlines.

Do I need a lawyer to file an excess proceeds claim? Not always — straightforward claims by the original owner with clear documentation can sometimes be handled directly with the Commissioner's office. Legal help becomes more valuable when there are multiple potential heirs, an unclear chain of title, a prior denial, or any question about whether the underlying tax sale itself was properly conducted.

I really want the land back. What can I do? We’ve worked to negotiate a buy-back from the purchaser or a move-out benefit packet. If you are adamant about keeping the property, and have the ability to obtain financing, we can work to negotiate a buy-back with the purchaser. You can try this yourself, too. The purchaser’s name will be listed on the Commissioner’s website. You can try reaching out by mail to them and see what happens.  

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How Duty Law Can Help

We help Arkansas families search for unclaimed excess proceeds, assemble the documentation needed for a strong claim — including heirship documentation and, where necessary, opening a probate estate or quiet title to establish who's entitled to claim — and represent clients whose claims have been denied or who believe a tax sale itself may not have followed the notice requirements Arkansas law demands. Losing land at a tax auction is difficult enough; we don't want any family to also lose money they're legally entitled to simply because they didn't know to look for it, or ran out of time before finding out it was there.

If you or a family member lost property at an Arkansas tax sale — whether last year or several years ago — contact Duty Law for a consultation. We'll help you check whether excess proceeds exist, confirm your eligibility to claim them, and move quickly if a deadline is approaching.

This page is intended for general informational purposes and does not constitute legal advice. Every situation is different, and the outcome of any excess proceeds claim depends on its specific facts. Contact Duty Law directly to discuss the details of your situation.