Before You Sign Away Your Rights, Read This First

Know Who Is Filing The Claim

Before signing any contract related to excess proceeds recovery, read the entire document — every page, every paragraph, every line of fine print. Do not rely on verbal summaries. The contract controls, not the conversation.

Key questions to answer before you sign: Is this a retainer agreement with an attorney? Is this an assignment of your rights to a third party? Is this a contingency fee agreement — and if so, for what percentage? Does the contract give someone the right to settle your claim without your approval? These questions matter enormously, and legitimate professionals will answer them clearly.

Know Whether An Attorney Is Involved

In most states, filing a legal claim for excess proceeds requires a licensed attorney. If you are working with a company that is not a law firm, ask specifically: Who is the attorney on this matter? Is that attorney licensed in the state where the property was sold? Will I have a direct relationship with that attorney?

Some companies act as finders or referral organizations and coordinate with attorneys. Others attempt to file claims themselves — sometimes without proper legal authority. Understand exactly who is handling the legal work before you sign anything.

Know Whether You Pay Upfront

Excess proceeds recovery fees vary significantly. Some attorneys charge a contingency fee — a percentage of the recovered amount. Some companies charge a flat fee. Others charge a percentage plus expenses. A few charge upfront fees regardless of outcome.

Before signing, get the fee structure in writing. Understand the percentage being charged and whether expenses (court costs, filing fees, research costs) are deducted from the recovery separately. Understand whether the fee applies if the claim is ultimately unsuccessful.

In qualifying matters, NEPEX-coordinated attorney referrals may involve contingency arrangements where attorney fees and case costs are advanced from recovered funds — meaning no upfront payment from you. Attorney approval is required. Recovery is not guaranteed.

Know Whether Heirs Are Included

If the former property owner is deceased, excess proceeds may belong to multiple heirs. Before signing any agreement, understand clearly: Does this agreement cover all eligible heirs, or only the person signing? What happens if other heirs come forward after the claim is filed? Who has the authority to sign on behalf of an estate?

A contract signed by one heir may not bind other heirs — but it could create complications. When multiple heirs are involved, the agreement should address how funds are distributed to all parties.

Know What Happens If Probate Is Required

If the former property owner is deceased and no probate estate was opened, the fund holder may refuse to release funds without court-appointed authority. Opening probate takes time — sometimes several months — and the statute of limitations does not pause while probate is pending.

Any agreement you sign should clearly address what happens if probate is required, who pays for probate costs, and whether those costs are included in the fee arrangement or charged separately.

Know Who Distributes Recovered Funds

When a claim succeeds, who receives the funds first — the claimant or the recovery company? In attorney-led matters, recovered funds typically flow through the attorney's trust account, with the attorney deducting fees and disbursing the remainder to the client. Some arrangements route funds differently.

Understand the distribution path before you sign. You should always receive a clear accounting of what was recovered, what fees were deducted, and what you are entitled to receive.

Know What Happens If No Recovery Occurs

Excess proceeds claims are not always successful. Funds may have already been disbursed. Competing claims may exist. The deadline may have passed. Documents may be incomplete. The fund holder may dispute the claim.

Before signing, ask: What happens if the claim is denied? Will the attorney appeal? Will additional fees be charged for an appeal? Is there a process for disputing the denial? What is your recourse if the outcome is unfavorable?

Know How Deadlines Work

Every state imposes a statute of limitations on excess proceeds claims. These deadlines range from one to several years and typically begin from the date of the sale — not from the date you learned about the funds. The deadline does not pause because you are still researching, gathering documents, or waiting for an attorney to review your case.

Before signing anything, confirm whether a deadline is approaching and how much time remains. A reputable professional will tell you honestly. One who pressures you by claiming a deadline is imminent — without being able to document it — may be creating false urgency.

Know What Deadlines May Apply

In some states and counties, former owners can file excess proceeds claims directly with the fund holder without a recovery company. In straightforward situations with a living claimant, clear ownership, and complete documentation, self-filing may be an option. An attorney can advise you on whether your situation qualifies.

When multiple heirs are involved, probate is required, or the amount is significant, professional representation is generally advisable. But understanding your options before signing helps you make an informed decision.