Wabash, IN asked in Foreclosure, Real Estate Law, Tax Law and Probate for Indiana

Q: is there a limit on the amount of fee that can be charged to the owner of a tax sale property when claiming the surplus

by a third party/bounty hunter company?

1 Lawyer Answer
James L. Arrasmith
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  • Probate Lawyer
  • Sacramento, CA

A: The laws regarding tax sale property surplus funds and the fees that third-party companies can charge for assisting owners in claiming those funds vary by state and jurisdiction. Many states do have limits on the fees that can be charged, but the specifics differ.

For example:

1. In Florida, the maximum allowable fee is 20% of the surplus amount for uncontested claims and 30% for contested claims.

2. In Illinois, the Treasurer's Office limits the fees to 15% of the surplus amount.

3. In Maryland, the limit is 10% of the amount of the surplus recovered.

However, some states may not have specific limits on these fees. It's important for property owners to carefully review any agreements with third-party companies and understand the fees they will be charged before signing.

Property owners should also be aware that they can typically claim their surplus funds directly from their county or state without the assistance of a third party, often without incurring any fees. Many government websites provide instructions on how to claim surplus funds.

As the laws can change and vary significantly by location, it's best to check with the specific county or state's tax office or consult with a local attorney for the most up-to-date and accurate information for your jurisdiction.

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