How can a co-owner seek reimbursement for improvements made to estate real property in Hawaii? | Hawaii Partition Actions | FastCounsel
HI Hawaii

How can a co-owner seek reimbursement for improvements made to estate real property in Hawaii?

Detailed Answer

Under Hawaii law, co-owners of real property can seek reimbursement for improvements through a partition action or an equitable contribution claim. The primary statutory remedy lies in a partition suit under Hawaii Revised Statutes (HRS) Chapter 520. In such a suit, one co-owner may request an accounting of improvements pursuant to HRS §520-28. If the court finds that the improvements increased the net sale proceeds, the improving co-owner recovers the reasonable value of those improvements; if the improvements reduced the net proceeds, the court adjusts each co-owner’s share accordingly.

Key Steps to Seek Reimbursement

  1. Document Your Improvements: Gather contracts, receipts, permits and before-and-after photos. Detailed records support the fair value of your work.
  2. File a Partition Action: Any co-owner may file for partition. Under HRS §520-8, you initiate the suit by filing a complaint in the Circuit or District Court (HRS §520-8).
  3. Request an Accounting for Improvements: In your complaint, cite HRS §520-28. Ask the court to value your improvements and allocate costs or benefits among co-owners.
  4. Attend the Hearing: Present your documentation and expert appraisals, if needed. The court examines whether your improvements increased or decreased the property’s value.
  5. Receive the Court Order: The court issues an order allocating the net proceeds or adjusting ownership shares to reflect the value of your improvements.

Alternative Remedies

If co-owners prefer not to partition, consider negotiating a buy-out or repayment plan. You may also file a separate civil action to establish an equitable lien or contribution claim. However, partition actions often provide the most direct statutory remedy.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney to discuss your specific situation.

Helpful Hints

  • Label all receipts and photographs with dates and descriptions.
  • Obtain at least two contractor estimates to support your valuation.
  • Keep detailed logs of hours if you performed improvements yourself.
  • Ask co-owners to sign a simple written agreement before starting major work.
  • Consider mediation before filing a court action to save time and costs.

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney.