Vermont Surplus Funds Laws
How mortgage foreclosure surplus, tax sale surplus and unclaimed funds work in Vermont.
Mortgage foreclosure surplus
12 V.S.A. § 4954(c) directs distribution after a judicial foreclosure sale; § 4966(e) does so for a nonjudicial sale. Junior lienholders take by priority, then the mortgagor receives any remaining excess. Neither § 4954(c) nor § 4966(e) states a fixed initial mortgagor surplus-claim deadline. In a judicial case, respond to the sale report and confirmation proceeding; in a nonjudicial sale, seek payment promptly. Redemption periods are separate.
Tax sale surplus
32 V.S.A. §§ 5252–5262 govern municipal tax sales. The Vermont Supreme Court in Ran-Mar, Inc. v. Town of Berlin, 2006 VT 117, ¶¶ 9–12, explains that surplus is held during redemption and paid to the taxpayer if title ultimately transfers. The tax-sale statutes do not set a separate general filing deadline for surplus. Surplus is not payable during redemption; if the taxpayer redeems, purchase proceeds return to the purchaser. If title passes, seek the excess from the municipality promptly.
Unclaimed funds
Vermont Revised Uniform Unclaimed Property Act, 27 V.S.A. ch. 18; § 1553 governs owner claims, as amended by 2026 Act 131. Section 1553 sets no fixed general deadline for an initial owner claim to the State Treasurer. The Act’s dormancy periods govern holders, not a cutoff for owners.
Statute text
Links to the statutes referenced in our research. These may be third-party copies of older code editions, so check the current official code before relying on them.
