Detailed Answer
When co-owners agree to sell property jointly, each party shares carrying costs such as mortgage interest, insurance, property taxes, and maintenance. Under Massachusetts law, you can recover these costs by demanding reimbursement or seeking contribution in court.
1. Identify and Document Carrying Costs
Create a spreadsheet of all expenses since ownership began. Include mortgage interest, insurance premiums, real estate taxes, and routine maintenance. Attach invoices, bank statements, and receipts to support each entry.
2. Calculate Each Owner’s Share
Determine ownership percentages. Multiply total carrying costs by each co-owner’s percentage. For example, if two co-owners each hold 50% and Alice pays $12,000 in property taxes, her share is $6,000.
3. Send a Written Demand
Prepare a formal demand letter summarizing the expenses, attaching documentation and stating the reimbursement amount. Set a reasonable deadline (e.g., 30 days) and send via certified mail. Retain proof of delivery.
4. File for Contribution in Court
If the co-owner refuses to pay, you can file an equitable accounting or partition action in Land Court. Under M.G.L. c.183, §6, co-tenants must contribute to necessary expenses incurred for the property. Partition actions under M.G.L. c.241, §2 allow the court to order sale proceeds to satisfy contribution claims.
5. Mind the Statute of Limitations
Claims for contribution generally fall under the six-year contract limitation in M.G.L. c.260, §2. File your action within six years of incurring the expense.
Helpful Hints
- Track expenses promptly using a dedicated file or financial app.
- Consider a joint escrow account for carrying costs.
- Send demand letters by certified mail and keep delivery receipts.
- Maintain open communication to minimize conflicts.
- Discuss your case with a real estate attorney before initiating court proceedings.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney regarding your specific situation.