Beware of finders targeting your surplus funds
N.C.G.S. 116B-78(b)(6) caps a property finder's total fees and costs: twenty percent of the value on the agreement the statute describes for surplus funds in a special proceeding, and the lesser of twenty percent or one thousand dollars on other covered agreements. An agreement failing any criterion in that statute is void and unenforceable.
If someone has offered to recover your foreclosure surplus for thirty or forty percent, treat the number as a warning. If the finder statute covers the agreement, that is above the statutory ceiling, and whether it covers a particular foreclosure surplus agreement depends on the agreement and the status of the money.
This page sets out what the law actually says about finders, what a finder agreement has to contain to be enforceable at all, and when an agreement is void no matter what it contains.
Been contacted about money from your foreclosure? Do not sign anything yet. Request a free claim review and we can tell you what the available record shows before you commit to anyone, including us.
What is a property finder under North Carolina law?
A property finder is an individual or business entity, incorporated or otherwise, who, for fee or any other consideration, seeks to locate, deliver, recover, or assist in the recovery of property that is distributable to the owner or presumed abandoned.
According to N.C.G.S. 116B-52(11a), North Carolina General Assembly, as of September 2026.
The definition is broad in its terms. It reaches individuals and business entities that seek to locate, deliver, recover, or assist in recovering covered property for a fee or other consideration, regardless of the label used in marketing.
Two requirements attach to that role. A property finder must register each calendar year with the State Treasurer and pay a registration fee. And a property finder must be licensed as a private investigator by the North Carolina Private Protective Services Board under Chapter 74C.
According to N.C.G.S. 116B-78(f) and 116B-78.1(a), North Carolina General Assembly, as of September 2026.
The Treasurer provides property finder registration information, including which finders are currently registered. If the person contacting you is not among them, that is worth knowing before you sign anything.
How much can a finder legally charge?
It depends which branch of the statute the agreement falls under, and neither ceiling is above twenty percent. For the agreement the statute specifically describes, one subject to G.S. 28A-22-11 by an heir whose primary purpose is recovering a share in a decedent's estate or surplus funds in a special proceeding, total fees and costs may not exceed twenty percent of the value. For other covered agreements, the limit is one thousand dollars or twenty percent, whichever is less.
According to N.C.G.S. 116B-78(b)(6), North Carolina General Assembly, as of September 2026.
Read that against a thirty or forty percent proposal. If the statute covers the agreement, a thirty or forty percent charge exceeds the ceiling under either branch. An agreement covered by this section is void and unenforceable if it does not meet every criterion the statute lists, and the fee limit is one of them.
IT GOES FURTHER THAN VOID. Failure to comply with the requirements of this section constitutes an unfair or deceptive trade practice under N.C.G.S. 75-1.1. That is a separate claim with its own remedies, on top of the agreement being unenforceable.
According to N.C.G.S. 116B-78(g), North Carolina General Assembly, as of September 2026.
What must a finder agreement contain?
The statute lists criteria an agreement must meet, and an agreement that fails any one of them is void and unenforceable.
According to N.C.G.S. 116B-78(b), North Carolina General Assembly, as of September 2026.
Among them, the agreement must:
Be in writing and clearly set out the nature of the property and the services to be rendered.
Be signed by the owner, with the signature notarized.
Be signed by a licensed private investigator authorized to bind the property finder, with that signature notarized as well.
Describe the property, including the type, the property ID held by the State Treasurer, and the name of the holder.
State that there may be other claims to the property that could reduce the owner's share.
State the value of the property, so far as known, both before and after the fee is deducted.
State the fees and costs clearly, within the limits above.
Disclose that the property is held by the North Carolina Department of State Treasurer's Unclaimed Property Program.
For an agreement with an heir under G.S. 28A-22-11, include a certification that the personal representative is not employed by, acting for, serving as counsel for, or doing business with the property finder.
That is a demanding list, and it is worth reading your own agreement against it line by line. For an agreement the statute covers, the notarized signature from a licensed private investigator is one of the mandatory criteria.
When is a finder agreement void regardless of what it says?
An agreement covered by the statute is void and unenforceable if it was entered into during the period beginning on the date the property became distributable to the owner and extending to twenty-four months after the property is paid or delivered to the Treasurer. That subdivision expressly does not apply to an owner's agreement with an attorney to file a claim or special proceeding as to identified property, or to contest the Treasurer's denial of a claim or a clerk's denial of a petition.
According to N.C.G.S. 116B-78(a2)(1), North Carolina General Assembly, as of September 2026.
This part is easy to miss, and it is a difference the statute itself draws between a finder agreement and an attorney agreement. The General Assembly voided finder agreements made during that window, and wrote an express carve-out for agreements with an attorney. That carve-out does not answer every question about a particular agreement, but the distinction is in the statute.
A SECOND VOID TRIGGER. An agreement is also void where it involves a property finder, or anyone acting as agent for, serving as legal counsel for, or conducting business in any contractual capacity with a property finder, and that individual is also appointed as personal representative of the owner's or purported owner's estate.
According to N.C.G.S. 116B-78(a2)(2), North Carolina General Assembly, as of September 2026.
Do I have to hire a lawyer to claim surplus funds?
No. Subsection (a) allows any person claiming the money, or part of it, to institute the proceeding. Subsection (b) requires that both those who have filed notice of a claim with the clerk and those the petitioner knows assert a claim be made defendants. Subsection (d) lets the court, in its discretion, allow a reasonable attorney's fee for an attorney appearing for a prevailing party, paid out of the funds in controversy.
According to N.C.G.S. 45-21.32(a) and (b), North Carolina General Assembly, as of September 2026.
We would rather tell you that plainly than overstate it. Filing is only part of the work. Much of it can be establishing who else has a claim ahead of you, which starts with the title record and the court file.
Second mortgages, docketed judgments, federal and state tax liens, association assessments, a co-owner nobody has located, or an estate that was never opened can affect who gets paid and in what order, and priority turns on the title record, the foreclosure documents and the applicable law. Failing to identify or join someone with a known claim can complicate the proceeding, delay distribution, or leave competing rights unresolved.
A property finder is not the same thing as counsel in that proceeding. Before deciding whether to hire anyone, understand what the person is actually offering, whether their agreement complies with the finder statute, and whether your claim involves work like identifying competing interests, opening an estate, or serving parties in court.
IF THE OWNER HAS DIED. N.C.G.S. 45-21.31(b) sends surplus to the clerk where an owner has died and no personal representative has qualified. Who may act, and what probate step is needed first, depends on the ownership and estate facts. Our guide to opening an estate to claim surplus funds covers what is usually involved.
Can the court award attorney fees out of the fund?
It can, at its discretion. The court may allow a reasonable attorney's fee for an attorney appearing on behalf of the party or parties who prevail, to be paid out of the funds in controversy, and shall tax costs against losing parties who asserted a claim by petition or answer.
According to N.C.G.S. 45-21.32(d), North Carolina General Assembly, as of September 2026.
Two things about that provision are worth being straight about. It is discretionary, so no one can promise it, and it runs to the prevailing party. It is not a reason to expect a fee-free outcome.
What it does show is that the General Assembly contemplated attorneys appearing in these proceedings and built a mechanism for their fees. Section 45-21.32(d) has no equivalent provision for a finder.
What should I do if a finder has contacted me?
Do not sign before you know what the money is and what the agreement says. Check the Treasurer's registered finder list, read the agreement against the statutory criteria, and get the fee in writing.
Specific things worth checking:
Is the person or company on the Treasurer's current list of registered property finders?
Does the agreement carry a notarized signature from a licensed private investigator?
What percentage is being asked for, and how does it compare with the twenty percent ceiling?
Does the agreement state the value of the property before and after the fee?
Does it disclose who is holding the property?
When was it presented to you, relative to when the money became distributable?
If you have already signed something, that is worth reviewing rather than assuming it binds you. An agreement that fails the statutory criteria is void and unenforceable by its own terms.
And if you have not been contacted by anyone but think you may have surplus from a foreclosure, you do not need a finder to tell you. The final report and account from the sale is filed with the clerk under N.C.G.S. 45-21.33, and that record shows the receipts and disbursements from the sale. Our guide to knowing whether you have surplus funds after a North Carolina foreclosure walks through the lookup, and our overview of how to claim surplus funds in North Carolina covers the proceeding itself.
What we charge, and how
Our fee is contingent: it comes out of what is recovered rather than being paid upfront. A special proceeding can also carry court costs, and the written fee agreement sets out how those are handled on a particular file.
Four common costs in a surplus claim:
Court filing fees and other case expenses, paid to the court rather than to us. Where a proceeding transfers to the civil issue docket, the clerk may also require a party asserting a claim to furnish a bond for costs.
A title search, used to identify recorded liens, judgments and other interests that may sit ahead of the claim.
Service of process on the other parties who must be named in the proceeding.
The attorney fee, which is contingent and taken from what is recovered.
Ask us for those figures in writing, and ask anyone else the same. Under Rule 1.5(c) of the North Carolina Rules of Professional Conduct, a contingent fee agreement must be in a writing signed by the client that states how the fee is calculated, which expenses come out of the recovery and whether before or after the fee is calculated, and any expenses the client will owe whether or not the client prevails. That agreement is where the question gets answered for your file rather than in general terms on a web page.
Frequently Asked Questions
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Neither ceiling in the statute is above twenty percent. For the agreement it specifically describes, one subject to G.S. 28A-22-11 by an heir whose primary purpose is recovering a share in a decedent's estate or surplus funds in a special proceeding, the limit is twenty percent of the value. For other covered agreements it is one thousand dollars or twenty percent, whichever is less. For an agreement the statute covers, exceeding the applicable limit fails a statutory criterion and makes it void and unenforceable. Whether it covers a particular foreclosure surplus agreement depends on the agreement and the status of the money.
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Locating a possible surplus can draw on court records, subject to applicable access rules, and those records do not by themselves establish who is entitled to the money. What the proceeding requires under N.C.G.S. 45-21.32(b) is that those who have filed notice of a claim with the clerk, and those the petitioner knows assert a claim, be made defendants and served. Before paying anything, read your agreement against the criteria in N.C.G.S. 116B-78(b).
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Possibly, and it does not depend on persuading them. The statute makes an agreement void and unenforceable if it fails any of the listed criteria, and separately if it was entered into during the window running from the date the property became distributable to twenty-four months after it is paid or delivered to the Treasurer. Have the agreement reviewed against the statute.
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No. N.C.G.S. 45-21.32(a) allows any person claiming the money, or part of it, to institute the special proceeding. Subsection (b) requires that those who have filed notice of a claim with the clerk, and those the petitioner knows assert a claim, be made defendants. Identifying them can require review of liens, judgments, ownership records and estates. That can be much of the work, and it is one reason people bring someone in, not because the law requires it.
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The North Carolina Department of State Treasurer publishes a current list of registered property finders, and registration runs by calendar year. A finder must also hold a private investigator license from the North Carolina Private Protective Services Board.
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Foreclosure filings and the final report and account are court records, subject to applicable access rules. Information in them can help someone identify a possible surplus claim, and that may be one reason a property finder or other business contacts a former owner.
Been contacted about surplus funds from your foreclosure?
Send us the agreement before you sign it. We can read it against the statute, tell you what the available court file shows, and explain your options, including the ones that do not involve us. Sending us an agreement does not by itself create an attorney-client relationship. If we can be of assistance to you, please reach out to us at 919-647-9599 or through our contact page.
ABOUT THE FIRM
Surplus Funds Attorney is the foreclosure surplus funds practice of The Walls Law Group, founded and led by Jason Walls, J.D. (Campbell University School of Law, undergraduate at North Carolina State University), North Carolina State Bar No. 34274, and a member of WealthCounsel. We handle surplus funds petitions before clerks of superior court across North Carolina, including for former owners who have moved out of state. Our office is at 5511 Capital Center Drive, Suite 180, Raleigh, NC 27606.
SOURCES
N.C.G.S. 116B-52(11a), definition of property finder.
N.C.G.S. 116B-78, agreement to locate property between property finders and owners, including the void-agreement provisions, the criteria for agreements, the fee limits, registration, and the unfair trade practice provision.
N.C.G.S. 116B-78.1, property finder regulation and enforcement, including private investigator licensing.
N.C.G.S. 45-21.32, special proceeding to determine ownership of surplus.
N.C.G.S. 75-1.1, unfair and deceptive trade practices.
Property finder information and the registered finder list, North Carolina Department of State Treasurer.
Legal disclaimer: This page provides general information about surplus funds law in North Carolina. It is not legal advice. Every case is different and results depend on the specific facts and circumstances. Reading this information does not create an attorney-client relationship. For advice about your situation, contact a licensed North Carolina attorney.