Disclaimer: This article is for educational purposes and does not constitute legal advice. Consult a licensed attorney for guidance specific to your situation.
Detailed Answer
1. Understanding Carrying Costs and Co-Owner Contributions
In South Carolina, co-owners of real property must share expenses such as property taxes, mortgage interest, insurance, homeowners’ association dues, and maintenance. Under S.C. Code Ann. § 27-1-15, a co-tenant who pays more than their share of these necessary charges can seek contribution from the other co-tenants.
2. Identifying and Documenting Expenses
List all carrying costs paid on behalf of the property. Common items include:
- Property taxes
- Mortgage interest
- Property insurance
- HOA fees or assessments
- Routine maintenance and repairs
Gather invoices, receipts, and bank statements showing each payment.
3. Calculating Each Co-Owner’s Share
Divide the total costs by the number of co-owners. For example:
- Total annual costs: $10,000
- Number of co-owners: 2
- Each share: $10,000 ÷ 2 = $5,000
- Amount owed by non-paying co-owner: $5,000 minus any payments they already made
4. Recovering the Amount Owed
You have two primary options:
- Negotiation or Mediation: Send a written demand detailing expenses, calculations, and a repayment deadline. Consider mediation if the co-owner contests the amount.
- Partition Action: File a partition action in the Court of Common Pleas. Under S.C. Code Ann. § 27-1-15, you can request the court to order contribution and adjust distributions upon sale or partition in kind.
5. Court Process and Distribution
The court reviews your expense documentation, orders contributions, and oversees the sale or division of the property. Any amounts paid on behalf of a co-owner reduce their share of the sale proceeds.
Helpful Hints
- Keep detailed, dated records of all payments.
- Send written demands by certified mail to establish notice.
- Consider alternative dispute resolution before litigation.
- Be aware of the six-year statute of limitations for open account claims in South Carolina.
- Consult a local attorney to draft and review settlement agreements or pleadings.