Detailed Answer
In Kentucky, co-owners of real property—known as tenants in common—must share the costs of holding and maintaining the property (“carrying costs”). Carrying costs typically include property taxes, mortgage interest, insurance premiums, maintenance, and utilities. When one co-owner pays more than their fair share, Kentucky law allows that co-owner to seek reimbursement from the other co-owner(s).
1. Identify the Carrying Costs
Compile all expenses paid on the property during the relevant period. Common categories include:
- Property taxes
- Mortgage interest and principal payments
- Homeowners’ or hazard insurance
- HOA dues or fees
- Utilities and routine maintenance
2. Determine Each Owner’s Pro Rata Share
Consult the joint sale agreement to confirm each co-owner’s percentage interest in the property. Multiply the total carrying costs by each ownership percentage to calculate each party’s fair share.
3. Calculate the Amount Owed
Subtract the amount the co-owner already paid from their pro rata share. The difference equals the amount you may pursue for reimbursement.
4. Send a Written Demand for Reimbursement
Draft a demand letter that lists:
- A detailed breakdown of all carrying costs and payment dates
- Each party’s ownership percentage and calculated share
- The outstanding balance owed
- A deadline for payment (typically 30 days)
5. Enforce Your Rights in Court
If the co-owner refuses to pay, you have two primary avenues under Kentucky law:
- Breach of Contract Action. File in Small Claims Court (limit set by KRS 24A.130) or Circuit Court for larger amounts. Seek payment of the outstanding balance plus interest under KRS 360.040.
- Partition Action. Under KRS § 381.210 et seq., you can ask the court to divide or sell the property and order an accounting of all expenses. The court will allocate costs and proceeds so that the party who overpaid is reimbursed.
Helpful Hints
- Maintain organized, itemized receipts for every carrying cost.
- Note the date, amount, and purpose of each payment.
- Review your joint sale agreement for cost-sharing or reimbursement clauses.
- Send demand letters via certified mail and keep delivery receipts.
- Consider mediation to resolve disputes before filing suit.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney about your specific situation.