Detailed Answer
When co-owners agree to sell property together, each party may bear carrying costs—mortgage interest, property taxes, insurance premiums, utilities and maintenance. To recover these expenses under Wyoming law, follow these steps.
1. Identify and Document Costs
List every expense paid on behalf of the property, including:
- Mortgage interest payments
- Annual or semi-annual property taxes
- Insurance premiums
- Utilities and maintenance costs
2. Allocate by Ownership Share
Review your joint sale agreement to determine each owner’s percentage interest. Multiply the total carrying costs by the co-owner’s ownership percentage to calculate their share.
3. Send a Written Demand
Use the notice procedure described in your agreement. Send a formal demand letter that details each expense, the co-owner’s share, a proposed payment date, and reference to the joint sale agreement.
4. Seek Contribution through Partition
If the co-owner fails to pay, file a partition action in the Wyoming district court where the property is located. Wyoming law allows courts to reimburse the paying co-owner for necessary expenses incurred to preserve or prepare property for sale. See Wyo. Stat. Ann. § 34-4-117 for distribution of sale proceeds and priority for liens, taxes and expenses.
5. Hypothetical Example
Assume owners A (60%) and B (40%) agree to sell a ranch. Annual carrying costs total $14,000. B’s share equals 40% of $14,000, or $5,600. A pays the full $14,000, sends a demand for $5,600, and files a partition action if B doesn’t respond. The court orders B to reimburse A’s share before distributing net proceeds.
Disclaimer
This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney to discuss your specific situation.
Helpful Hints
- Maintain organized records of all payments and receipts.
- Check your joint sale agreement for strict notice and timing requirements.
- Explore mediation or settlement discussions before filing a lawsuit.
- Verify the correct district court venue for partition actions.
- Work with an attorney experienced in Wyoming real estate co-ownership disputes.