Detailed Answer
When two or more people inherit or own real estate together in Alaska, each co-owner holds an undivided interest in the entire property. If one co-owner makes improvements—such as installing a new roof, repaving a driveway, or renovating an interior—he or she may have a right to reimbursement for the added value. Below are the most common legal avenues to recover those costs under Alaska law.
1. Voluntary Agreement and Accounting
The simplest path begins with open communication. The improving co-owner should:
- Gather all invoices, receipts, contracts, and before-and-after valuations.
- Provide the other co-owners with an itemized accounting of labor and materials.
- Request reimbursement in writing, noting each party’s proportional share.
If co-owners agree, they can execute a written settlement or amendment to their ownership agreement acknowledging the credit or payment.
2. Partition Action with Equitable Accounting
If negotiations fail, Alaska law allows any co-owner to file a partition action in Superior Court under AS 09.45.010. In that lawsuit, you can ask the court to:
- Divide the property physically among co-owners (if feasible).
- Order a sale of the property and divide the proceeds.
- Provide an equitable credit or lien for the cost of improvements at the final accounting stage.
During the partition proceeding, the court assigns each party’s share based on contribution, including improvements. See Alaska Statute AS 09.45.010 (Partition of real property) and AS 09.45.090 (Distribution of proceeds).
3. Unjust Enrichment or Quantum Meruit Claim
If the improvement was not expressly authorized, you may file a separate suit for unjust enrichment or quantum meruit. To succeed, you must show:
- You conferred a benefit (the improvement) on the property.
- The other co-owners accepted or retained that benefit.
- It would be unjust for them to keep the benefit without paying.
The court may award monetary damages equal to each co-owner’s fair share of the increased property value.
4. Practical Steps to Take
- Document everything: photos, contracts, receipts, valuations.
- Provide formal notice to co-owners requesting reimbursement.
- Offer mediation or alternative dispute resolution.
- If unresolved, prepare and file a partition or unjust enrichment action in Alaska Superior Court.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified Alaska attorney before taking any action.
Helpful Hints
- Keep meticulous records of all costs and communications.
- Obtain a professional appraisal to show increased value.
- Discuss a written co-ownership agreement before making major improvements.
- Consider mediation to avoid court costs and delays.
- Be aware of potential tax implications when claiming credits.