Disclaimer: This article provides general information on Ohio law and does not constitute legal advice. Always consult a qualified attorney for advice on your specific situation.
Detailed Answer
1. Understanding Carrying Costs
Carrying costs cover expenses you incur to maintain a property while it awaits sale. Common items include:
- Mortgage interest
- Property taxes
- Homeowners insurance
- Utilities and maintenance
- HOA or condominium fees
In a joint sale agreement, each co-owner typically owes these costs in proportion to their ownership share.
2. Calculating Your Share
- Gather all receipts and statements for each expense category from the period of ownership or since the agreement date.
- Total each category to arrive at a grand total of carrying costs.
- Determine each party’s ownership percentage. For example, a 50% co-owner owes half of the total costs.
- Multiply the grand total by the co-owner’s percentage to calculate the amount due.
3. Recovering Costs Under Ohio Law
If a co-owner fails to reimburse you voluntarily, Ohio law allows you to seek equitable contribution. You can pursue reimbursement by filing a partition action in your county’s Court of Common Pleas under Ohio Rev. Code Chapter 5307.
Section 5307.18 empowers the court to order repayment of advances and costs out of the sale proceeds:
“The court may direct any or all of the costs, expenses, or advances to be paid or repaid out of the proceeds of sale, as the justice of the case requires.” (Ohio Rev. Code § 5307.18).
In practice:
- File a partition complaint naming all co-owners.
- Submit an itemized statement of your carrying costs.
- Ask the court to charge each co-owner their prorated share from sale proceeds.
- The court may hold a hearing to verify expenses and ownership percentages.
Once approved, the sale proceeds pay off carrying costs first, then distribute the net balance among co-owners.
Helpful Hints
- Keep detailed records: Save invoices, canceled checks, and bank statements for each expense.
- Notify co-owners in writing: A formal demand letter may encourage voluntary payment.
- Use a neutral third party: Consider a mediator before filing a lawsuit to reduce conflict and legal fees.
- Check contractual terms: Review your joint sale agreement for any specific cost-sharing provisions.
- Consult local rules: Court procedures and filing fees vary by county in Ohio.