Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney to address your specific situation.

Detailed Answer: Calculating and Recovering Carrying Costs from a Co-Owner in Maryland

1. Identify and Document Carrying Costs

Carrying costs are expenses you incur to hold property until sale. Common items include:

Mortgage payments (principal and interest)
Property taxes
Homeowners insurance
HOA fees or condominium assessments
Maintenance, utilities, and repairs

Gather statements, invoices, cancelled checks and bank records. Clearly show dates and amounts. Accurate documentation forms the basis for any contribution claim.

2. Allocate Your Co-Owner’s Pro Rata Share

Under most joint ownerships in Maryland (often tenants in common), each co-owner owes the other a share of expenses proportional to their ownership interest. If you own 50% and pay the full mortgage, your co-owner owes you 50% of that payment.

Formula:

Co-Owner Share = Total Cost × Ownership Percentage

Example: You pay $2,000 mortgage; you own 50%; co-owner owes $1,000.

3. Demand Reimbursement in Writing

Before filing a court action, send a formal demand letter. Include:

A summary of expenses and dates
Copies of supporting documents
Calculation of the co-owner’s share
A deadline (e.g., 30 days) for payment

Keep proof of delivery (certified mail or email with read receipt).

4. File a Partition and Accounting Action if Necessary

If your co-owner refuses to pay, Maryland law allows you to seek an equitable accounting and partition of the property. You file in the Circuit Court where the property lies. The court can:

Order sale of the property
Allocate net proceeds after deducting all carrying costs
Award one co-tenant reimbursement for expenses paid on behalf of another

See Md. Code Ann., Real Prop. § 3-206 (right to petition for partition and accounting): RP § 3-206.

5. Claim Statutory Interest on Judgment

If the court enters judgment for your reimbursement, you can claim interest from the date of expense through payment under Md. Code Ann., Courts & Judicial Proceedings § 11-107: CJP § 11-107. The current rate is set annually by the District Court.

Helpful Hints

Keep detailed records: Create a spreadsheet tracking each payment and attach digital copies of receipts.
Review your joint sale agreement: Some agreements specify expense-sharing rules or dispute-resolution steps.
Discuss early: A candid conversation can avoid litigation and preserve co-owner relations.
Consider mediation: Courts encourage alternative dispute resolution to reduce time and cost.
Act promptly: Maryland’s three-year limitations period for breach of contract claims may apply.