Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney in Missouri for advice tailored to your situation.
Detailed Answer
When two or more co-owners agree to sell real estate jointly, one owner may pay all carrying costs—such as mortgage payments, property taxes, insurance premiums and maintenance—while waiting for a sale. Under Missouri law, the paying co-owner can seek reimbursement from the non-paying co-owner for that party’s fair share.
1. Identify Carrying Costs
- Mortgage principal and interest
- Real estate taxes
- Homeowner’s insurance
- Utilities and maintenance (lawn care, repairs)
2. Calculate Pro Rata Share
Determine each co-owner’s ownership percentage. If both own 50%, each owes half of total carrying costs. For unequal shares, multiply total costs by each percentage. For example, if total costs are $10,000 and you own 60% while your co-owner owns 40%, your co-owner’s share is $10,000 × 0.40 = $4,000.
3. Account for Possession or Use
If a co-owner occupied the property exclusively, Missouri courts may credit “use and occupation” against that co-owner’s share of carrying costs or increase the paying owner’s share. You may need to calculate a reasonable rent benefit and subtract it from costs owed.
4. Demand Payment in Writing
Send a written demand letter specifying total costs, co-owner’s share, and a deadline (e.g., 30 days). Keep copies of receipts—invoices for taxes, insurance, mortgage statements and repair bills.
5. Seek an Accounting or Partition Action
If your co-owner refuses to pay, you can file an action for accounting or partition in the Circuit Court. Under Mo. Rev. Stat. § 452.410(Partition Actions), any co-owner may ask the court to force a sale and to order an accounting of expenses. The court can order the non-paying co-owner to reimburse their share of carrying costs before distributing sale proceeds.
6. Consider Equitable Relief
Missouri courts recognize unjust enrichment claims when one co-owner benefits at the expense of another without reimbursement. You may assert an equitable lien or constructive trust to secure repayment of carrying costs.
Helpful Hints
- Keep detailed records of all payments and receipts.
- Draft a co-ownership or sale agreement in writing before incurring major costs.
- Consider mediation to resolve disputes before filing court actions.
- Ask your lender or insurer for statements in your co-owner’s name to prove their obligation.
- Consult a Missouri real estate attorney for guidance on partition procedures and equitable claims.