Short answer
You may demand an accounting from a co-owner of mortgage payments, liens, and repair expenses, and you can ask that sale proceeds be held or distributed only after those items are resolved. However, you generally cannot unilaterally withhold or divert sale proceeds without an agreement or a court order. If the co-owner refuses to provide documents or an accounting, you can seek relief in court (for example, a partition action with an accounting) or ask the title/escrow agent to hold funds in escrow until disputes are resolved.
Detailed answer — how this works under New Mexico law and practical steps
1. Co-owners’ basic duties and accounting
Co-owners of real property owe each other a duty to account for contributions and disbursements that affect the property. Common items include:
- Mortgage payments and outstanding loan balances or payoffs;
- Property taxes and insurance;
- Documented repair and improvement expenses;
- Rents collected and ordinary maintenance costs.
When the property is sold or a partition occurs, each owner’s share normally reflects ownership percentage adjusted by any agreed or proven contributions and reimbursements.
2. What you can legally ask for
You can request the following from a co-owner:
- Copies of mortgage statements, payoff letters, or lender contact information;
- Receipts, invoices, canceled checks, or credit-card statements that show repair or improvement costs;
- Records of rent, utility payments, insurance, and tax payments related to the property.
Keeping requests in writing and with a reasonable deadline helps establish a record if you later go to court.
3. What you cannot do without agreement or court action
You generally cannot: (a) unilaterally refuse to close the sale or withhold your share of proceeds that are lawfully due; or (b) offset disputed amounts against proceeds unless you have a signed agreement or a court order permitting that offset. If the other co-owner refuses to cooperate, the proper remedy is to ask a court to order an accounting, apportioned distribution, or to resolve claims for reimbursement.
4. Practical remedies before filing a lawsuit
- Send a written demand for documents and an accounting, stating a reasonable deadline.
- Ask the title/escrow company to hold proceeds in escrow until you receive supporting documents or until you agree on adjustments. Title companies often will not disburse funds until liens are satisfied and a clear chain of title is shown.
- Propose mediation or neutral accounting to resolve disputes quickly and cheaply.
- Collect and preserve evidence: copies of your own payments, communications, photos of repairs, and any estimates or contracts from contractors.
5. Court options in New Mexico
If negotiation fails, you can pursue judicial relief. A common route is a partition action, where a court can order sale of the property, divide proceeds, and require an accounting for contributions and expenses. The court can award reimbursement, create equitable liens, or adjust distributions to reflect who contributed to mortgages or repairs. New Mexico courts handle partition and related equitable claims; see the New Mexico Legislature and court resources for background on civil actions and property remedies: New Mexico Legislature and New Mexico Courts.
6. Timing and evidence standards
Courts expect clear evidence for reimbursement claims. Maintain organized documentation: lender payoff letters, itemized receipts, canceled checks, contractor contracts, before-and-after photos, and contemporaneous communications. Absent documentation, it is harder to obtain reimbursement or an adjustment from sale proceeds.
7. Escrow, title company, and closing agents
A title or escrow agent can be a practical partner. They typically require payoff of recorded liens and will hold net proceeds pending resolution of title issues. Request that the closing agent: (1) confirm lien satisfaction, (2) place disputed funds in an escrow holdback, and (3) refuse disbursement without a written agreement or court order.
8. Costs and when to hire an attorney
Consider hiring an attorney if the dispute involves substantial sums, if a co-owner is uncooperative, or if complex issues (like disputed ownership shares or large repair claims) exist. An attorney can prepare a demand letter, file a petition for partition and accounting, and ask the court for interim relief such as an injunction or escrow order.
Helpful hints
- Always make requests in writing and keep proof of delivery (email with read receipt, certified mail).
- Ask for specific documents: mortgage payoff, monthly statements for the previous 12–36 months, paid receipts, canceled checks, and contractor contracts.
- Use the title company to hold disputed proceeds in escrow until liabilities and reimbursements are resolved.
- Preserve your own records of payments, communications, and repairs. Digital photos and time-stamped emails are helpful.
- Consider a neutral accountant or mediator for fast, lower-cost resolution when both sides are willing.
- If you must go to court, seek an accounting, partition, and any equitable relief necessary to protect your share.
Where to learn more and next steps
For general information about civil actions and property disputes, visit the New Mexico Legislature at https://www.nmlegis.gov/ and the New Mexico Courts at https://www.nmcourts.gov/. If the money at stake is meaningful, consult a licensed New Mexico attorney who can evaluate the facts, preserve evidence, and advise whether a demand, escrow request, mediation, or partition action is the best next move.
Disclaimer: This article provides general information about New Mexico law and practical steps. It is not legal advice, does not create an attorney-client relationship, and may not reflect recent changes in the law. For advice tailored to your situation, consult a licensed attorney in New Mexico.