How to Calculate and Recover Carrying Costs from a Co-Owner in a Joint Sale Agreement in Oregon
Disclaimer: This article provides general information only and does not constitute legal advice. Always consult a qualified attorney for advice on your specific situation.
Detailed Answer
When two or more parties own property together and agree to sell it jointly, one co-owner may pay the ongoing expenses—often called carrying costs—such as mortgage interest, property taxes, insurance, utilities, and maintenance. If you advanced these costs and your co-owner hasn’t reimbursed you, Oregon law offers tools to calculate and recover your outlay.
1. Identify and Catalog All Carrying Costs
- Mortgage interest and principal payments
- Property taxes
- Homeowners insurance premiums
- Utilities (water, electricity, gas, trash)
- Routine maintenance and repairs
Keep receipts, bank statements, and invoices. Assign each expense a date and amount. Confirm each item directly relates to the jointly owned property.
2. Calculate Co-Owner’s Share
Determine each owner’s ownership percentage—often stated in the deed or joint-sale agreement. Multiply the total carrying costs by your co-owner’s percentage. For example, if carrying costs total $10,000 over six months and your co-owner holds a 40% interest, their share equals $4,000.
3. Demand Reimbursement Informally
Send a written demand letter summarizing the expenses, attaching copies of receipts, and stating a deadline for payment (e.g., 30 days). Many disputes resolve at this stage if clear documentation exists.
4. File for Partition Accounting in Court
If the co-owner refuses to pay, you may bring a partition action under Oregon Revised Statutes Chapter 105. The court can order an accounting of “rents, issues and profits” and may adjudicate a lien against the co-owner’s interest to reimburse your expenses. See ORS 105.115 and ORS 105.135.
In your complaint, you must:
- List all carrying costs paid.
- Specify each owner’s share.
- Request an accounting or sale of the property.
5. Seek a Money Judgment or Lien
Alternatively, you may sue for breach of the joint-sale agreement or unjust enrichment in circuit court, requesting a money judgment for the unpaid share. If successful, you can file a judgment lien against the co-owner’s property interest.
Helpful Hints
- Document every expense promptly and clearly.
- Review your joint-sale agreement for reimbursement clauses.
- Keep written records of all communication regarding repayments.
- Consider mediation before filing suit to save time and cost.
- Consult an attorney familiar with
Oregon real property and partition law for tailored advice.