Detailed Answer: Calculating and Recovering Carrying Costs in Mississippi
Carrying costs are expenses incurred to maintain real estate before sale. In a joint sale agreement, co-owners share these costs. Common carrying costs include property taxes, mortgage interest, insurance premiums, homeowners association dues, and maintenance expenses.
1. Identifying Carrying Costs
Gather all invoices, statements, and receipts for the relevant ownership period. Typical costs include:
- Property taxes
- Mortgage interest
- Homeowners insurance
- HOA or condo fees
- Maintenance and repairs
2. Calculating Each Co-Owner’s Share
Determine each co-owner’s ownership percentage as specified in the joint sale agreement. Multiply total carrying costs by each percentage. For example, if Co-Owner A holds 60% and Co-Owner B holds 40%, A’s share is 60% of costs; B’s share is 40%.
3. Recovering Costs Under Mississippi Law
Mississippi allows co-owners to recover unpaid carrying costs through a partition action. Under Miss. Code Ann. § 11-21-17, a chancery court orders an accounting of costs and allocates expenses equitably. If one owner pays more than their share, the court can order reimbursement from the other owner.
4. Practical Steps to Recover Carrying Costs
- Itemize all carrying costs with dates, descriptions, and amounts.
- Send a written demand by certified mail to the co-owner, referencing the joint sale agreement.
- If the co-owner fails to pay, file a partition action in Mississippi chancery court under Miss. Code Ann. § 11-21-1 et seq.
- Request an accounting and equitable distribution of sale proceeds, including reimbursement of unpaid costs.
- Obtain a court judgment and enforce it to recover the owed amounts.
Helpful Hints
- Keep detailed, dated records of every expense.
- Review your joint sale agreement for explicit cost-sharing terms.
- Send all demands in writing and via certified mail to create proof.
- Explore mediation or negotiation before resorting to litigation.
- Consult a Mississippi attorney to clarify deadlines and procedural requirements.
Disclaimer
This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney for guidance on your specific situation.