Disclaimer: This article does not constitute legal advice. It provides general information based on Texas law. For guidance specific to your situation, consult a qualified attorney.
When co-owners agree to sell property together, they share carrying costs such as mortgage payments, property taxes, insurance premiums, utilities, and maintenance costs. Recovering these costs requires clear calculation, written demands, and, if necessary, court intervention under the Texas Property Code.
Detailed Answer
- Review the Joint Sale Agreement: Confirm each co-owner’s ownership percentage and any agreed method for sharing carrying costs. If the agreement is silent, Texas presumes equal shares or shares based on contributions to acquisition.
- Identify and Document Carrying Costs: Itemize all expenses incurred during joint ownership—mortgage interest, taxes, insurance, utilities, routine upkeep. Collect statements, invoices, and receipts.
- Calculate Total and Allocate Costs: Sum the documented expenses over the relevant period. Multiply the total by your co-owner’s ownership percentage. For example, if the monthly combined costs equal $1,200 and a co-owner owns 40%, their monthly share is $480. Over six months, the share is $2,880.
- Send a Formal Demand: Draft a written demand letter stating the total amount owed, attaching supporting documents. Send it via certified mail and set a clear deadline for payment.
- Pursue a Partition Action if Necessary: If the co-owner refuses to pay, file a partition lawsuit under Tex. Prop. Code § 23.001 (https://statutes.capitol.texas.gov/Docs/PR/htm/PR.23.htm#23.001). In the suit, request an accounting of rents, profits, and expenses. Under § 23.006 (https://statutes.capitol.texas.gov/Docs/PR/htm/PR.23.htm#23.006), the court can order reimbursement of carrying costs before sale. The court may also award court costs and attorney fees under § 23.007 (https://statutes.capitol.texas.gov/Docs/PR/htm/PR.23.htm#23.007).
- Enforce the Judgment: Once the court orders reimbursement, enforce the judgment through liens or other collection methods permitted under Texas law.
Helpful Hints
- Keep detailed records of all expenses with dates and receipts.
- Define cost-sharing terms clearly in the joint sale agreement.
- Send demand letters via certified mail and retain proof of delivery.
- Consider mediation or alternative dispute resolution before filing suit.
- Be mindful of statutes of limitations—Texas generally allows four years for breach of contract claims.
- Consult a real estate attorney for complex property matters or disputes.