Detailed answer (how this works under Maine law)

When two or more people own real property together, the owners have mutual rights and obligations. Before dividing net sale proceeds, it is normal and appropriate to reconcile contributions and liabilities so each co-owner receives their fair share.

Key legal realities in Maine that affect what you can require and what actually happens at closing:

• Lender liens have priority: If the property has a mortgage, the mortgage lender’s lien must be satisfied at closing out of the sale proceeds. That payoff normally comes from a lender-issued payoff statement or payoff demand prepared close to the closing date.
• Documenting contributions matters: If one co-owner paid mortgage installments, property taxes, insurance, or paid for repairs or improvements, that co-owner can usually seek contribution or a credit against the other co-owner(s) for their share. To support that claim, contemporaneous mortgage statements, cancelled checks, receipts, invoices, or bank records are the best evidence.
• Courts can compel an accounting: If co-owners cannot agree, Maine law allows a co-owner to file a partition or accounting action in court. A judicial proceeding can compel discovery (production of mortgage statements and receipts), order an equitable accounting, and instruct how proceeds should be allocated. See Maine’s statutes governing partition and related remedies in Title 14 of the Maine Revised Statutes: Title 14 — Real Estate (Maine Revised Statutes). (If you file a dispute, a Maine court will resolve who is entitled to credits or reimbursements.)
• Equitable credits and liens: If one co-owner paid the mortgage or made repairs for the benefit of the property, a court may award that co-owner a credit from the sale proceeds or recognize an equitable lien or reimbursement claim against the other co-owner(s). The precise remedy depends on the facts, the evidence, and equitable principles applied by the court.
• Practical effect at closing: In practice, title companies and closing agents will insist on a lender payoff statement to release mortgage liens. They will also ask for documentation of any agreed offsets or credits. If co-owners disagree and cannot document their positions, the closing agent may require an escrow holdback or refuse to distribute contested funds until the dispute is resolved by agreement or court order.

Typical scenarios (hypotheticals to illustrate)

Example A — mortgage payments: Two co-owners (A and B) own a house with a $100,000 mortgage. A paid the mortgage for two years ($6,000 total) because B didn’t contribute. At sale, the mortgage payoff is obtained from the lender and paid first. A can present mortgage statements and bank records to claim B’s share of the $6,000. If B refuses to cooperate, A can start a partition/accounting action asking the court to order production of statements and award A a contribution credit.

Example B — repairs: Co-owner A pays $5,000 for a new roof. The roof increases marketability and sale price. A should keep invoices and paid receipts. At closing, A can seek reimbursement or a credit from the proceeds. If B disputes the cost or necessity, the court can decide whether to require reimbursement or whether the cost should be shared.

What you can do immediately (practical steps)

1. Ask in writing for the mortgage payoff statements, cancelled checks or bank records for the mortgage payments, and receipts/invoices for repairs or improvements. Keep a copy of your written request.
2. Talk to the title company or closing agent. They will need a payoff statement from the lender and will usually insist on documentation for any credits or offsets before disbursing disputed amounts.
3. Propose an escrow holdback at closing for disputed amounts. The title company can hold the disputed portion until you and your co-owner agree or a court decides.
4. If the co-owner refuses to produce documents or cooperate, consult a Maine attorney about filing a partition or accounting action so the court can compel discovery and determine credits or liens.

How a court usually resolves these disputes

If you go to court, expect the judge to:

• Order production of relevant financial records and receipts (discovery).
• Examine who benefited from mortgage payments or repairs and allocate equitable credits proportionally or order reimbursement.
• Ensure that mortgage liens are satisfied first from sale proceeds, then divide the remaining net proceeds after accounting adjustments.

For background on Maine’s statutory framework for partition and property remedies, see Title 14 of the Maine Revised Statutes: https://legislature.maine.gov/statutes/14.

Important reminder: the precise relief available depends on the facts, the proof you can produce, and applicable legal standards. Courts look at who actually paid, whether payments were necessary, whether improvements increased value, and whether the co-owners had any agreement about contributions.

Helpful Hints

• Request documentation in writing and keep copies of all communications.
• Get lender payoff statements directly from the lender near the closing date; lenders issue precise payoff figures and demand dates.
• Keep receipts, canceled checks, bank statements, and photos of repairs or improvements to prove expenses.
• Use a title company escrow if co-owners disagree about credits. An escrow holdback prevents premature distribution of contested funds.
• If you and the co-owner can’t agree, consider mediation before filing court actions — it is faster and less expensive.
• If you file a partition or accounting action, the court can compel production of mortgage statements and receipts through discovery.
• Consult a Maine attorney early if large sums are at stake or if the other co-owner refuses to cooperate; an attorney can help prepare discovery requests and protect your rights.