Disclaimer: This article is for educational purposes and is not legal advice.
Detailed Answer
When co-owners enter a joint sale agreement in Colorado, they agree to sell property together and share related expenses. Carrying costs include mortgage payments, property taxes, insurance premiums, homeowners association fees and necessary maintenance. If one co-owner pays more than their share, Colorado law allows them to recover the excess contributions.
1. Identify and Document Carrying Costs
List every expense you paid to preserve the property. Gather mortgage statements, tax receipts, insurance invoices and HOA bills. Note the dates and amounts for each payment.
2. Calculate Each Party’s Share
Determine your ownership percentages under the joint sale agreement. Multiply the total carrying costs by the other co-owner’s ownership percentage to find their fair share. Subtract their share from the amount you paid to determine the balance they owe. For example, if carrying costs total $10,000 and ownership splits 50/50, each party owes $5,000. If you paid the full $10,000, you can claim $5,000 from the other co-owner.
3. Seek Amicable Recovery
Start with a written demand letter explaining the expenses, calculations and your request for reimbursement. Propose mediation or negotiation. A clear paper trail and polite communication often lead to a quick resolution.
4. File a Claim for Breach of Contract
If the joint sale agreement includes a cost-sharing clause, you can sue for breach of contract under Colorado law. File in county court if the amount owed is within the small claims limit (currently $25,000). For larger claims, proceed in district court. See C.R.S. § 13-21-101 for statute of limitations on contract actions.
5. Consider a Partition Action
If co-ownership remains contentious or the property still needs sale, file an action for partition under the Colorado Partition Act, C.R.S. Title 38, Article 41. In a partition action (C.R.S. § 38-41-102), the court can order an accounting and reimburse co-owners who advance necessary expenses. The court then directs sale or physical division, applies reimbursements, and distributes net proceeds.
Helpful Hints
- Maintain detailed records and receipts for every expense.
- Specify cost-sharing terms clearly in your joint sale agreement.
- Use a demand letter to open negotiations before filing suit.
- Track Colorado’s small claims court limits (up to $25,000).
- Keep communication professional to preserve relationships.