Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Detailed Answer
1. Understand Carrying Costs
“Carrying costs” are the necessary expenses you incur to maintain jointly owned property until sale. They typically include:
- Mortgage interest
- Property taxes
- Insurance premiums
- Utilities
- Routine maintenance and repairs
2. Review Your Joint Sale Agreement
First, check the written agreement. Many joint sale contracts specify which party pays carrying costs and how to allocate them. If the agreement addresses cost sharing, follow its terms exactly.
3. Calculate Each Co-Owner’s Share
If the agreement is silent, use these steps:
- Gather all invoices and payment records for each expense category.
- Determine each co-owner’s ownership percentage (e.g., 50/50 or 60/40).
- Multiply each expense by the other owner’s percentage to find their share.
- Subtract any amounts the other owner already paid. The balance is what you may recover.
4. Send a Formal Demand
Draft a written demand letter. Include an itemized statement of carrying costs, your calculation method, and a payment deadline (typically 30 days). Keep a copy for your records.
5. File a Contribution Claim in Court
If the co-owner fails to pay, you can ask the Maine Superior Court for equitable relief. File an action for partition and contribution under Maine’s partition statutes. The court may order sale of the property or award money judgment for unpaid costs.
Key statutes:
- Maine Rev. Stat. Title 14, § 609 (Sale after partition)
- Maine Rev. Stat. Title 14, § 615 (Costs in partition actions)
Helpful Hints
- Keep detailed, dated records of every payment.
- Confirm ownership shares in your deed or agreement.
- Send demand letters via certified mail for proof of delivery.
- Consider mediation before filing suit to save time and costs.
- Check Maine’s statute of limitations (typically six years for written contracts under Maine Rev. Stat. Title 14, § 752).
- Consult a Maine real estate attorney for complex property matters.