Disclaimer: This article is for educational purposes only and does not constitute legal advice.
Detailed Answer: Calculating and Recovering Carrying Costs from a Co-Owner in Florida
Understanding Carrying Costs
Carrying costs are all expenses you incur to hold and prepare property for sale. In Florida, common carrying costs include:
- Property taxes
- Hazard and liability insurance
- Mortgage interest
- Maintenance and repairs
- HOA fees and utilities
Step-by-Step Calculation
Follow these steps to determine how much your co-owner owes:
- Gather documentation: invoices, statements, receipts from acquisition to closing.
- Total each expense category.
- Confirm each owner’s ownership percentage (e.g., 60%/40%).
- Multiply the grand total by the co-owner’s percentage share.
Recovering the Amount Owed
1. Demand Letter: Draft a written demand outlining the carrying costs breakdown, the co-owner’s share, and a payment deadline (commonly 30 days).
2. Partition Action: If the co-owner refuses payment, file a partition action under Fla. Stat. Ch. 64. Florida courts can order sale of the property and adjust proceeds to reimburse the paying party per Fla. Stat. § 64.031.
3. Breach of Contract Claim: If you have a written joint sale agreement, sue under contract law. Florida enforces written contracts for up to five years under Fla. Stat. § 95.11(2)(b).
4. Equitable Accounting: Request an accounting in equity. Florida courts recognize that co-owners must share expenses proportionately and may order reimbursement.
If you obtain a judgment, you can collect interest at 6% per annum under Fla. Stat. § 55.03.
Helpful Hints
- Track every payment: Retain receipts, invoices, and bank records in one folder.
- Verify ownership interests: Include percentages in your joint sale agreement.
- Send a clear demand letter: Detail the math and set a firm deadline.
- Explore mediation: It can be faster and less expensive than litigation.
- Get legal guidance: An attorney can help file partition or contract claims correctly.