Georgia Tax Sale Excess Funds: A Practitioner's Guide to O.C.G.A. § 48-4-5 and Superior Court Interpleader

In Georgia judicial and non-judicial tax sales conducted under Title 48 of the Official Code of Georgia Annotated, competitive public auction bidding often produces substantial excess proceeds over delinquent tax liabilities. Pursuant to O.C.G.A. § 48-4-5, these excess funds must be paid over to the county tax commissioner or sheriff and held in trust for distribution to entitled parties of record.

1. The Five-Year Statutory Claim Horizon

Unlike jurisdictions with compressed 120-day windows, Georgia provides a robust 5-year statutory period from the date of the tax sale for record titleholders and subordinate lienholders to assert claims for excess proceeds. If funds remain unclaimed following the expiration of the statutory period, the custodian must remit the remaining funds to the state treasury as unclaimed property.

2. Priority of Distribution and Superior Court Interpleader

When multiple adverse claims are asserted against the excess funds—such as competing mortgagees, municipal assessment liens, or judgment creditors—county tax commissioners will not resolve priority administratively. Instead, the county files an interpleader action in the Superior Court pursuant to O.C.G.A. § 9-11-22, depositing the funds into the registry of the court for judicial determination of priority.