Disclaimer: This article provides general information about Nebraska law and does not constitute legal advice. Consult a licensed attorney for advice specific to your situation.
Detailed Answer
When co-owners jointly hold property and agree to sell, each owner must contribute their share of carrying costs—expenses incurred to maintain the property until sale. Carrying costs typically include:
- Mortgage interest
- Property taxes
- Insurance premiums
- Homeowners association (HOA) fees
- Utility bills and maintenance
Step 1: Identify and total each cost. For example, suppose a property has the following monthly expenses:
- Mortgage interest: $1,000
- Property taxes: $200
- Insurance: $100
- HOA fees: $50
Total monthly carrying costs: $1,350. If you pay these costs alone for six months, your total outlay is 6 × $1,350 = $8,100.
Step 2: Determine each co-owner’s share. For equal owners, divide total costs by two: $8,100 / 2 = $4,050. This amount is your co-owner’s contribution.
Step 3: Document and demand repayment. Compile mortgage statements, tax bills, insurance invoices, HOA statements, and receipts. Send a written demand to your co-owner, specifying the total owed and attaching documentation.
Step 4: Pursue recovery through court if necessary. Under Nebraska’s partition statutes, you may file for partition by sale and seek reimbursement of carrying costs:
Neb. Rev. Stat. § 25-21,185 allows a co-tenant to obtain contribution for necessary repairs and expenses, including taxes and insurance.
In a partition action, the court can order that net sale proceeds first reimburse co-owners who advanced carrying costs before dividing the remainder. You must present a detailed accounting of expenses in court.
Helpful Hints
- Keep detailed records: Save invoices, bank statements, and receipts for all property-related expenses.
- Communicate in writing: Send emails or letters outlining expense shares and deadlines for payment.
- Get agreements in writing: If possible, draft a co-ownership agreement defining how carrying costs will be split.
- Consider mediation: A neutral mediator can help resolve disputes before court.
- Consult an attorney: A Nebraska real estate attorney can guide you through partition actions and statutory requirements.