Post-Tyler v. Hennepin County Reforms: State Notice Procedures & Due Process in Surplus Equity

The Supreme Court's unanimous ruling in Tyler v. Hennepin County, 598 U.S. 631 (2023), established a fundamental constitutional principle: when a government entity forecloses on real property for delinquent taxes and sells it, retaining proceeds beyond the debt, interest, and costs constitutes an unconstitutional taking without just compensation under the Fifth Amendment.

1. The Shift from Statutory Forfeiture to Notice Requirements

Prior to Tyler, several jurisdictions operated under strict forfeiture regimes where unclaimed overages automatically lapsed into municipal general funds without proactive notice to former owners. In the wake of the decision, state legislatures and county clerks have enacted statutory notice enhancements:

• Affirmative Written Notice: County clerks must mail formal written notices to all record interest holders within fixed post-sale windows (e.g., Fla. Stat. § 197.582 90-day notice mandate).
• Published Unclaimed Registries: Jurisdictions increasingly publish monthly or quarterly online surplus lists to satisfy procedural due process under the Fourteenth Amendment (Mullane v. Central Hanover Bank & Trust Co.).
• Clear Claim Filing Windows: Establishing reasonable administrative claim windows (1 to 5 years depending on jurisdiction) before escheat to state treasury departments.