Short answer
Yes — you can and should ask a co-owner for mortgage statements and repair receipts before proceeds are split. Under Vermont law, liens (like mortgages) and valid claims for necessary costs are resolved before net sale proceeds are divided, and courts routinely require an accounting in a partition or related proceeding. If a co-owner refuses to produce records, you can ask a court to order an accounting, hold proceeds in escrow, or resolve competing claims before distribution.
Detailed answer — how this works in Vermont
1. Mortgages and liens come off the top
When real property is sold (voluntarily or by court-ordered partition), secured creditors — e.g., mortgage holders — have priority. The mortgage lender’s lien must be paid from sale proceeds before co-owners divide the remainder. That means mortgage statements and payoff figures are essential to determine how much must be paid to clear the title.
For Vermont statutory resources about civil actions involving real property and court procedures, consult the Vermont Statutes and the Vermont Judiciary website: https://legislature.vermont.gov/statutes/ and https://www.vermontjudiciary.org/.
2. Repairs, maintenance, and improvements — how credits and reimbursements work
Payments a co-owner made for necessary repairs or to preserve the property can often be credited against that owner’s share of the sale proceeds. Voluntary improvements that increase value may entitle the paying co-owner to reimbursement or to a lien or credit in equity. To claim reimbursement, the paying co-owner should present documentation: receipts, proof of payment, and explanation of why the work was necessary.
Absent an agreement, Vermont courts will decide whether a particular expense is a proper charge against the sale proceeds. The court’s equitable powers allow it to order an accounting and adjust distributions to reflect mortgages, taxes, necessary repairs, and contributions by co-owners.
3. What you can demand and when
- Ask for mortgage statements, payoff letters, and any communication with lenders to establish the amount owed and the priority of liens.
- Request receipts, invoices, canceled checks, bank records, and before/after evidence for repairs or improvements.
- If you receive nothing, send a written demand that states why you need records and what you will do if documents are not produced (e.g., seek court relief). Keep a copy of that demand.
4. If the co-owner refuses — remedies available in Vermont
If a co-owner refuses to provide documentation, you have options:
- Agree to place sale proceeds in escrow or a neutral trust account until claims are resolved.
- File an action for partition in Vermont superior court asking the court to sell the property and order an accounting for mortgages, taxes, repairs, and contributions. In that proceeding the court can require production of records and decide credits and offsets.
- Ask the court for preliminary relief such as an order that proceeds be held pending resolution, or a discovery order compelling production of the documents.
Courts in Vermont have equitable power to adjust distributions so that each co-owner receives a fair share after payment of liens and necessary expenses.
5. Practical steps to protect your rights
- Make a written request for mortgage statements and repair receipts. Keep proof of delivery (email with read receipt or certified mail).
- Gather your own records showing your payments, communications, and any agreements about paying the mortgage or sharing repair costs.
- Propose escrow or a joint closing statement at sale showing lien payoffs and proposed credits before final distribution.
- If the co-owner claims large charges without receipts, demand verification; do not agree to distributions until you can verify numbers.
- If negotiations fail, consult an attorney about filing for partition and an accounting in Vermont Superior Court so a judge can adjudicate competing claims.
6. Timing and evidence
Act promptly. The longer you wait, the harder it may be to recreate records or to prevent distribution of funds. Keep copies of all correspondence and proofs of payment. Bank statements, canceled checks, vendor invoices, photos of repairs, and dated emails are useful evidence.
7. Costs and attorney involvement
Legal costs can exceed the disputed amount in small cases. Consider mediation or a neutral accountant if the dispute is limited. For significant sums or contested claims, an attorney can file a partition action and compel discovery; courts may award costs and fees in certain circumstances.
Helpful hints
- Always demand written documentation. Oral claims are harder to prove in court.
- Before any sale, insist on a closing statement that lists mortgage payoffs and itemized credits for repairs and improvements.
- Suggest putting proceeds into escrow at closing until all claims are resolved or a court orders distribution.
- If one co-owner paid the mortgage, they should provide mortgage payment history showing principal and interest payments; that will determine whether reimbursement or credit is appropriate.
- Remember that an unpaid mortgage is a lien on the property; lenders get paid first regardless of co-owner disputes.
- Use certified mail or email for requests so you have a record of your demands.
- Consider a limited scope attorney consult to evaluate whether filing for partition or an accounting is worth the expense in your case.
Where to find more information
Vermont statutes and court information are available online at:
- Vermont Statutes Online: https://legislature.vermont.gov/statutes/
- Vermont Judiciary (court procedures, forms, and contact information): https://www.vermontjudiciary.org/