Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a licensed attorney in New York for guidance tailored to your situation.
Detailed Answer
When co-owners enter a joint sale agreement for real property in New York, each owner typically bears a proportional share of carrying costs—expenses incurred to maintain and transfer the property. Carrying costs may include:
- Mortgage interest and principal payments
- Property taxes
- Insurance premiums
- Utilities and maintenance fees
- HOA or condominium dues
Step 1: Identify and Document All Carrying Costs
Collect statements, invoices, receipts, and bank records showing each expense. Organize them by category and date. This documentation forms the backbone of your reimbursement claim.
Step 2: Calculate Your Share
Unless the joint sale agreement specifies a different split, New York law presumes equal contribution among co-tenants. To calculate your share:
- Sum total costs for each category over the agreed period.
- Divide each total by the number of co-owners (typically two for a joint sale).
- Compare your actual out-of-pocket payments to your apportioned share.
Example: If total property taxes for six months are $6,000 and there are two co-owners, each owes $3,000. If you paid $5,000, the co-owner owes you $2,000.
Step 3: Demand Reimbursement Informally
Send a written demand letter outlining:
- Dates and amounts of each cost
- Your calculated share
- Copies of supporting documents
- A reasonable deadline (e.g., 30 days) for payment
An informal resolution often saves time and legal fees.
Step 4: Seek Formal Recovery
If the co-owner refuses payment, you may pursue a legal remedy under New York’s partition statutes. In a Partition By Sale action, the court can:
- Appoint a referee to sell the property
- Order an accounting of all contributions and costs
- Require the non-paying co-owner to reimburse you before dividing sale proceeds
This authority arises under the Real Property Actions and Proceedings Law (RPAPL). For example, RPAPL §914 provides that a co-tenant who pays taxes or other necessary charges “may have contributions” from the other co-tenants. RPAPL §914
Similarly, RPAPL §915 allows a co-tenant to recover for necessary repairs or improvements. RPAPL §915
Helpful Hints
- Review your joint sale agreement for specific cost-sharing provisions.
- Keep a running log of all property-related expenses.
- Use certified mail for demand letters to establish a clear timeline.
- Consider mediation to resolve disputes before filing suit.
- Consult a real estate attorney to discuss partition or accounting actions under New York law.