Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Detailed Answer
When multiple individuals own real property together, each co-owner holds an undivided share. If one co-owner pays for improvements—such as a new roof, major landscaping, or structural upgrades—they generally cannot force the others to cover those costs without a legal claim.
1. File a Partition Action
Under Colorado law, any co-owner may request a partition action to divide or sell the property (C.R.S. § 38-27-101 et seq.). The court either splits the land among owners (partition in kind) or orders a sale and divides the proceeds.
2. Claim Credit for Improvements
Colorado Revised Statutes § 38-27-109 authorizes the court to adjust each owner’s share. The court credits the co-owner who paid for necessary repairs, improvements, mortgage payments, and property taxes. That co-owner receives reimbursement from sale proceeds before the remainder is divided among all owners.
See C.R.S. § 38-27-109: Partition—shares of owners; lien for advances.
3. Negotiate a Private Agreement
Co-owners can avoid litigation by agreeing in writing on reimbursement terms. Record the agreement in the county real estate records. A clear contract protects each party and can include payment schedules, credit amounts, and deadlines.
4. Alternative Equitable Remedies
If co-owners cannot agree or pursue partition, a co-owner may sue for unjust enrichment or quantum meruit in county court to recover the value of improvements. These claims require proof that one party benefited without fair compensation.
Helpful Hints
- Document all improvement costs with invoices, paid receipts, and before-and-after photos.
- Obtain multiple bids before starting major work to establish fair market value.
- Create written agreements before spending shared funds and file them in public records.
- Act promptly. Delays can weaken your legal claim for reimbursement.
- Consider mediation or alternative dispute resolution to save time and costs.