Detailed Answer
Under Alabama law, a co-owner of real property—whether as tenants in common or joint tenants—can recover money spent on improvements that increased the propertys value. Courts handle this through a partition action or an equitable accounting. Both paths allow a co-owner to seek credit for necessary and beneficial improvements.
1. File a Partition Action
A partition action lets a court divide or sell the property and distribute the proceeds. You start by filing a complaint in the circuit court where the property lies, naming all co-owners. Under Ala. Code § 6-6-236, any co-owner with an interest in the land may bring the suit.
When the court orders a sale, it first pays liens, taxes and costs. Then, per Ala. Code § 6-6-247, the court may allow a credit for “necessary and beneficial improvements” made by a party. If your improvements added measurable value, the judge can adjust your share of the sale proceeds to reimburse you.
2. Prepare Detailed Evidence
Compile all proof of your expenses:
- Receipts, invoices and canceled checks for materials and labor
- Written agreements or estimates showing costs
- Before-and-after appraisals or inspection reports documenting value increases
Clearly link each expense to the improvements effect on market value. Courts favor thorough records.
3. Seek an Equitable Accounting
If you prefer not to partition, you can ask the court for an equitable accounting. You file a suit in equity asking for contribution or reimbursement. You must show that your improvements were:
- Reasonable and necessary
- Documented with clear records
- Beneficial to the property’s overall value
The court then determines each co-owners fair share of benefits and expenses.
4. Consider Alternative Dispute Resolution
Before going to court, propose mediation or arbitration. A neutral mediator can help craft an agreement on reimbursement, saving time and legal fees.
Disclaimer: This article provides general information only and does not constitute legal advice. Consult a qualified attorney in Alabama to address your specific situation.
Helpful Hints
- Keep all improvement-related documents organized in one file.
- Get multiple bids for large projects to show market rates.
- Notify co-owners in writing before starting major work.
- Ask for a formal appraisal after significant improvements.
- Meet any filing deadlines for partition actions—Alabama has no specific statute of limitations for partition, but equity suits may be time-barred.