Delaware uses a sheriff sale process for tax-delinquent properties, where homes and land are sold at public auction to satisfy outstanding tax obligations. When a property sells for more than the total amount owed in back taxes, penalties, and fees, the excess becomes surplus funds that belong to the former property owner. Despite being the second-smallest state in the country, Delaware has a well-organized system for tracking and distributing these funds across all three of its counties.
One of the most notable features of Delaware's surplus fund process is the Project Rightful Owner program, which actively helps former property owners locate and claim money owed to them from sheriff sales. All three Delaware counties maintain online resources for searching surplus records, making the state one of the more accessible places to begin a claim. If you lost a property to a tax sale in Delaware, there is a good chance you can find information about any surplus generated from the sale.
How Delaware Sheriff Sales Work
When a property owner falls behind on property taxes in Delaware, the county government petitions the court for a sheriff sale. The court authorizes the sale, and the property is listed for public auction conducted by the county sheriff's office. Bidders compete at auction, and the property is sold to the highest bidder. The sale proceeds first cover the delinquent taxes, court costs, and any associated fees. If the winning bid exceeds the total amount owed, the remaining balance becomes surplus funds.
These surplus funds legally belong to the former property owner. The county holds the excess proceeds and is required to make them available for claim. Former owners typically have a defined period to come forward and request their money, though the specific timeframe can vary. Unclaimed surplus may eventually be transferred to the state's unclaimed property division, where it can still be recovered at a later date.
Project Rightful Owner
Unique to Delaware, the Project Rightful Owner program was created to help former homeowners search for and claim surplus funds generated by sheriff sales. This program allows individuals to look up whether they are owed money from a past property sale directly through an online portal. It is a significant advantage for Delaware residents because it removes many of the barriers that exist in other states, where former owners must navigate complex court records or contact multiple offices to determine if surplus exists.
If you owned property in Delaware that was sold at a sheriff sale, checking the Project Rightful Owner database should be your first step. The program streamlines what can otherwise be a confusing and time-consuming process, connecting eligible claimants with funds that are rightfully theirs.
Delaware's Three Counties
Delaware has only three counties, and all three maintain online access to surplus fund records and sheriff sale information. This makes statewide searching straightforward compared to larger states with dozens or hundreds of counties.
New Castle County is the most populous county in Delaware and includes the city of Wilmington. As the state's economic center, New Castle County processes the highest volume of sheriff sales and generates the most surplus funds. Surplus inquiries can be directed to the sheriff's office or the county finance department. Contact them at 302-395-5470. New Castle County provides online access to sale records and surplus fund information.
Sussex County covers the southern portion of the state and includes popular coastal communities. Property values in Sussex County have risen significantly in recent years, which can result in larger surplus amounts when sheriff sales occur. The county finance department handles surplus fund inquiries and can be reached at 302-855-7871. Online records are available for searching past sales and surplus balances.
Kent County is home to Dover, the state capital, and sits between New Castle and Sussex counties. Kent County's mix of residential and agricultural properties means that sheriff sale activity and surplus amounts can vary widely. The county finance department manages surplus funds and can be contacted at 302-744-2341. Like the other two counties, Kent County offers online access to relevant records.
How to Claim Surplus Funds in Delaware
To claim surplus funds in Delaware, contact the county sheriff's office or the county finance department where your former property was located. You will need to provide proof of former ownership, such as a recorded deed, settlement statement, or tax records that show your name on the property. A government-issued photo ID is also required to verify your identity. In some cases, you may need to file a court petition to formally request the release of the funds, particularly if the surplus has been held for an extended period or if there are competing claims.
Gather your documentation before reaching out to the county office. Having your records organized will speed up the process and demonstrate your eligibility. This content is for informational purposes only and does not constitute legal advice.
Act Now to Recover Your Money
Surplus funds do not remain available indefinitely in every case. The sooner you begin the claim process, the better your chances of a smooth recovery. Whether you start with the Project Rightful Owner program or contact your county directly, taking action now is the most important step.
Search our Browse Delaware surplus funds lists to see if there are surplus funds connected to a property you owned.