2023 New York Laws › RPT - Real Property Tax › Article 11 - Procedures for Enforcement of Collection of Delinquent Taxes › Title 6 - Distribution of Surplus › 1197 - Claims for Surplus.

§  1197.  Claims  for surplus. 1. Any person who had any right, title,
interest, claim, lien or equity  of  redemption  in  or  upon  a  parcel
immediately  prior  to  the  issuance of the judgment of foreclosure may
file a claim with the court having  jurisdiction  for  a  share  of  any
surplus  resulting  from the sale of such property. Such claims shall be
administered and adjudicated, and such surplus shall be distributed,  in
the  same  manner  as  in  an action to foreclose a mortgage pursuant to
article thirteen of the  real  property  actions  and  proceedings  law,
subject to the provisions of this section.
2.  (a)  Where the property was sold by a public sale, the amount paid
for the property shall be accepted as the full value of the property. No
party may maintain a claim for surplus or  any  other  claim  or  action
against  the  tax  district  on  the  basis that the amount paid for the
property did not fairly represent the property's value.
(b) Where the property was  sold  by  other  than  a  public  sale,  a
claimant  may  make  a motion, upon notice to the enforcing officer, for
the surplus to be recalculated on the basis  that  the  property's  full
value  on  the  date of the sale was substantially higher than the value
used to measure the surplus pursuant to subparagraph (ii)  of  paragraph
(a)  of  subdivision  one  of  section eleven hundred ninety-six of this
title. If the court or its referee finds that  a  preponderance  of  the
evidence  supports  the  claimant's  position,  the court may direct the
enforcing officer to recalculate the surplus based upon  the  property's
value  as  determined  by  the  court  or referee. The court may further
direct the enforcing officer to pay the  difference  into  court  to  be
distributed as required by this section.
3.  Where  the  court  has  appointed  a  referee  to preside over the
proceedings pursuant to subdivision  two  of  section  thirteen  hundred
sixty-one of the real property actions and proceedings law, it shall not
be  necessary for such referee to make a report of such proceedings; nor
shall it be necessary for the court to confirm  by  order  or  otherwise
such proceedings.
4.  In  the  case  of  residential  property,  if  at  the time of the
confirmation of the report of sale, no  former  homeowner  has  filed  a
claim  for  surplus,  and  there  are surplus proceeds that remain to be
distributed, the proceeding shall remain open for at least  three  years
from  the  confirmation of the report of sale, or for such longer period
as the court may direct. If a former homeowner should file a  claim  for
surplus  during  such  period, the court shall proceed as if it had been
timely filed.
5. At the conclusion of such proceedings, any surplus funds that  have
not  been claimed shall be deemed abandoned but shall be paid to the tax
district, not to the state comptroller, and shall be  used  by  the  tax
district to reduce its tax levy.
6.  To  the  extent  the  provisions  of  article thirteen of the real
property  actions  and  proceedings  law  are  inconsistent   with   the
provisions of this article, the provisions of this article shall govern.