Detailed Answer
When co-owners sign a joint sale agreement, each agrees to share expenses and profits from selling the property. Carrying costs typically include mortgage interest, property taxes, insurance, maintenance, utilities and homeowners association dues. Recovering these costs from a co-owner involves three steps:
1. Identify Eligible Carrying Costs
List all expenses you advanced during ownership. Common items include:
- Mortgage interest and principal payments
- Property tax bills
- Insurance premiums
- Repairs and routine maintenance
- Utility charges and HOA fees
2. Calculate Each Co-owner’s Share
Most agreements default to an ownership percentage, often 50/50 for two owners. Multiply each expense by the co-owner’s share percentage to determine what they owe. For example, if you paid $4,000 in property taxes over a year and ownership is equal, the co-owner’s share is $4,000 × 50% = $2,000.
3. Demand Reimbursement or Seek Court Accounting
If your joint sale contract lacks an explicit reimbursement clause, you can still pursue reimbursement. Idaho law allows you to include costs in a partition action or file an accounting claim if co-owners cannot agree.
Under Idaho Code § 55-806, a court may allocate sale costs, including advances by one party, when it orders sale or partition of real property. You can file a motion in an existing partition lawsuit or initiate one if it doesn’t exist. Cite
Idaho Code § 55-806 (Disposition of cost of lands sold in partition).
Alternatively, send a formal demand letter itemizing expenses and a deadline for payment. If the co-owner refuses, you can pursue a breach of contract claim in small claims or district court, depending on the amount.
Helpful Hints
- Keep receipts and bank statements for every expense.
- Review your joint sale agreement for cost-sharing provisions.
- Maintain a clear spreadsheet showing dates, amounts and ownership percentages.
- Consider mediation before filing a lawsuit to save time and costs.
- Consult an attorney if the co-owner contests your calculations.
Disclaimer: This article provides general information only and does not constitute legal advice. Consult a licensed attorney in Idaho to discuss your specific situation.