Tennessee Code Annotated
Tenn. Code Ann. § 67-5-2702 (2026)
Motion setting forth claim to excess sale proceeds - Service of motion - Hearing on motion - Recovery of excess proceeds paid in error
✓ current as of May 2026
- (a) Following entry of the order of confirmation of sale, any interested person, as defined in this chapter, may file a motion with the court requesting disbursement of any excess sale proceeds pursuant to this section.
- (b) A copy of such motion shall be served, in the manner provided by the Tennessee Rules of Civil Procedure for motions not asserting new or additional claims for relief, on all interested persons as of the date of the filing of such motion, no later than thirty (30) days prior to the hearing date of the motion.
- (c) At the hearing, the court shall order that any remaining redemption period shall be terminated as to the movant and as to any other person entitled to redeem property who consents to such termination as evidenced by their signature on such order, and any excess proceeds be paid according to the following priorities to each party that establishes its claim to the proceeds:
- (1) To the tax entity or entities prosecuting the delinquent tax sale, for any remaining or subsequent outstanding taxes that are a lien against the property;
- (2) To any lienholder, private or public, holding a claim against the property at the time of the tax sale, for the amount proven to be due under such lien, in accordance with priorities established by applicable law;
- (3) To any lienholder, private or public, holding a claim against the property arising after the tax sale, for the amount proven to be due under such lien, in accordance with priorities established by applicable law;
- (4) To any taxpayer, according to such taxpayer's interest at the time of the tax sale; provided, that such taxpayer was a defendant in the underlying action, or acquired by will or intestate succession the interest in the property of a former taxpayer who was a defendant in the underlying action; and
- (5) Any remaining excess proceeds shall be subject to the Uniform Unclaimed Property Act, compiled in title 66, chapter 29, part 1. A motion for excess proceeds may be filed in the court in which the proceeding is pending until such time as the funds are actually forwarded to the state pursuant to the Uniform Unclaimed Property Act. The presumption of abandonment shall not arise until the final determination of all filed motions for redemption and excess proceeds or one (1) year following the expiration of the redemption period for that parcel, whichever is later.
- (d) A person who claims to be the owner of an interest in a parcel, which is the subject of a motion to claim any excess proceeds from a delinquent tax sale shall record the document effecting such ownership, or an abstract thereof, or an affidavit of heirship, in the office of the register of deeds for the county in which the parcel is located, prior to thirty (30) calendar days before the day on which the motion is scheduled to be heard. A person who fails to timely record such document shall not be entitled to notice of the motion to claim excess proceeds as referred to in subsection (a).
- (e) In the event an interested person who failed to receive notice of the motion to claim excess proceeds, absent any fault on the interested person's part, claims that a person has received excess proceeds in error or in excess of the person's correct share to the detriment of the interested person, the interested person shall have a right of action against such person for the recovery of such excess proceeds as may have been paid in error. Such right of action shall be the exclusive remedy of such an interested person. In addition to any other available actions, the interested person may, by motion, seek relief from the order disbursing the excess proceeds, in the court in which the tax proceeding was filed. Neither the court clerk nor an attorney participating in a proceeding to determine distribution of excess proceeds pursuant to subsection (g) shall be liable for the failure of an interested person to receive notice of the proceeding or for any excess proceeds paid in error.
- (f) For the purposes of this section, "in accordance with priorities established by applicable law" means that the priority of the interests in the parcel shall transfer to the proceeds from the sale of the parcel.
- (g) In the event the court directs the delinquent tax attorney or an attorney ad litem to participate in the excess sale proceeds portion of the proceedings as an assistance to the court, the court may allow a reasonable attorney's fee to be assessed as directed by the court.
Amended by 2018 Tenn. Acts, ch. 778,Secs.s2, s3 eff. 4/19/2018.
Amended by 2017 Tenn. Acts, ch. 457,s 5, eff. 7/1/2017.
Amended by 2015 Tenn. Acts, ch. 414,s 25, Sec.s26, Secs.s27, s28 eff. 5/8/2015.
Added by 2014 Tenn. Acts, ch. 883,s 18, eff. 7/1/2014.
Repealed by 2014 Tenn. Acts, ch. 883,s 17, eff. 7/1/2014.
Amended by 2013 Tenn. Acts, ch. 353,s 29, eff. 5/13/2013.
Acts 1991, ch. 470, § 1; 1998, ch. 1096, § 2; 2006, ch. 817, §§ 1, 2; 2009, ch. 156, § 1; 2009, ch. 530, § 103.
Notes of Decisions
Cited in 16
cases (5 in the last 5 years), 1997–2026 · leading case: Minter v. Prasad (In Re Minter), 314 B.R. 164 (Bankr. W.D. Tenn. 2004).
Minter v. Prasad (In Re Minter), 314 B.R. 164 (Bankr. W.D. Tenn. 2004). “The one year redemption period referred to in the decree is in accordance with T.C.A. § 67-5-2702(a). On June 25, 2002, the debtors filed their chapter 13 petition.”
Sunburst Bank v. Patterson, 971 S.W.2d 1 (Tenn. Ct. App. 1997). “Tenn.Code Ann. § 67-5-2702(a) (1994). Therefore, the statute in effect during the events in this ease required a mortgage holder such as Sunburst, claiming a non-posses-sory interest in real property, to file a declaration of interest in order to avoid waiving its right to…”
Mortg. Elec. Reg. Sys., Inc. v. Carlton J. Ditto, 488 S.W.3d 265 (Tenn. 2015). “§ 67-5-2702(3) (2011) (currently Section 67-5-2701(a)(l)).”
Todd Marsh v. Larry A. Storie, 373 S.W.3d 553 (Tenn. Ct. App. 2012). “" Tenn.Code Ann. § 67-5-2702(a) (2011). 2 .”
Hamilton Cnty. & F/U/B of the State of Tennessee v. Tax Year 2018 Delinquent Taxpayers (Tenn. Ct. App. 2024). “See Tenn. Code Ann. § 67-5-2702 (c)(2). The trial court interpreted the plain meaning of the statutory phrase, “at the time of the tax sale,” to mean that because FMCC had held a valid judgment lien in July 2022, when the order confirming the tax sale was entered, the company…”
Metro. Gov't of Nashville & Davidson Cnty. v. Delinquent Taxpayers As Shown On The 2011 Real Prop. Tax Record (Tenn. Ct. App. 2018). “” Tenn. Code Ann. § 67-5-2702 . Because the redeeming party must pay its funds, including interest on the amount paid at the tax sale within one year, there is no authority in the statute for a longer period of interest.”
Delinquent Taxpayers as Shown On The 2011 Real Prop. Tax Records Of The Metro. Gov't Of Nashville & Davidson Cnty.. v. The Metro. Gov't of Nashville & Davidson Cnty.. (Tenn. Ct. App. 2018). “Freeman; REO then exercised the right of redemption within the one-year period set forth at section 67-5-2702 (2013). For the foregoing reason, we affirm the trial court’s conclusion that REO was entitled to redeem the property.”
Hamilton Cnty. v. Tax Year 2010 Delinquent Taxpayers (Tenn. Ct. App. 2026). “Tenn. Code Ann. § 67-5-2702 (a) (effective May 13, 2013, to June 30, 2014).”
State v. Jacqueline Heard & Irvin Salky (Tenn. Ct. App. 2000). “Furthermore, section 67-5-2702 of the Tennessee Code states that “[p]ersons entitled to redeem property may do so by paying the moneys to the clerk as required by § 67-5-2703 .”
Short v. City of Grand Junction, TN (W.D. Tenn. 2023). “§ 67-5-2702. Plaintiff after the sale. The third and final question is whether a party acting under color of state law was responsible for the deprivation of Plaintiff’s right.”
State of Tennessee ex rel. Bradley Cnty., Tennessee v. 's Inc. (Tenn. Ct. App. 2008). “On July 3, 2007, within the one-year redemption period set forth in Tenn. Code Ann.§ 67-5-2702, Mr. Payne redeemed the property by paying money into court for the delinquent taxes, interest, penalties, court costs, and statutory attorney fees.”
Rutherford Cnty., Tennessee v. Delinquent Taxpayers Of Rutherford Cnty., Tennessee (Tenn. Ct. App. 2017). “On July 17, 2013, the trial court entered a decree confirming the sale which, pursuant to Tenn. Code Ann. § 67-5-2702 (a) (2013),2 commenced the running of Mr.”
— Tenn. Code Ann. § 67-5-2702(3) — 1 case
Mortg. Elec. Reg. Sys., Inc. v. Carlton J. Ditto, 488 S.W.3d 265 (Tenn. 2015). “§ 67-5-2702(3) (2011) (currently Section 67-5-2701(a)(l)).”
— Tenn. Code Ann. § 67-5-2702(a) — 3 cases
Minter v. Prasad (In Re Minter), 314 B.R. 164 (Bankr. W.D. Tenn. 2004). “The one year redemption period referred to in the decree is in accordance with T.C.A. § 67-5-2702(a). On June 25, 2002, the debtors filed their chapter 13 petition.”
Sunburst Bank v. Patterson, 971 S.W.2d 1 (Tenn. Ct. App. 1997). “Tenn.Code Ann. § 67-5-2702(a) (1994). Therefore, the statute in effect during the events in this ease required a mortgage holder such as Sunburst, claiming a non-posses-sory interest in real property, to file a declaration of interest in order to avoid waiving its right to…”
Todd Marsh v. Larry A. Storie, 373 S.W.3d 553 (Tenn. Ct. App. 2012). “" Tenn.Code Ann. § 67-5-2702(a) (2011). 2 .”
— Tenn. Code Ann. § 67-5-2702(c) — 2 cases
Short v. City of Grand Junction, TN (W.D. Tenn. 2023). “§ 67-5-2702. Plaintiff after the sale. The third and final question is whether a party acting under color of state law was responsible for the deprivation of Plaintiff’s right.”
Hamilton Cnty. & F/U/B of the State of Tennessee v. Tax Year 2018 Delinquent Taxpayers (Tenn. Ct. App. 2024). “See Tenn. Code Ann. § 67-5-2702 (c)(2). The trial court interpreted the plain meaning of the statutory phrase, “at the time of the tax sale,” to mean that because FMCC had held a valid judgment lien in July 2022, when the order confirming the tax sale was entered, the company…”
— Tenn. Code Ann. § 67-5-2702(c)(2) — 1 case
Hamilton Cnty. & F/U/B of the State of Tennessee v. Tax Year 2018 Delinquent Taxpayers (Tenn. Ct. App. 2024). “See Tenn. Code Ann. § 67-5-2702 (c)(2). The trial court interpreted the plain meaning of the statutory phrase, “at the time of the tax sale,” to mean that because FMCC had held a valid judgment lien in July 2022, when the order confirming the tax sale was entered, the company…”
— Tenn. Code Ann. § 67-5-2702(c)(4) — 1 case
Short v. City of Grand Junction, TN (W.D. Tenn. 2023). “§ 67-5-2702. Plaintiff after the sale. The third and final question is whether a party acting under color of state law was responsible for the deprivation of Plaintiff’s right.”
Annotations are extracted automatically from the opinions in the
Syfert caselaw corpus and ranked by authority, recency, and
treatment. Dots show Syfertize treatment of the citing case itself.