Can I recover the cost of repairs and maintenance I paid for a co-owned property? – North Carolina

Short Answer

Yes, often. In North Carolina, a co-owner (cotenant) who paid more than their share of certain property expenses—such as necessary repairs, insurance, property taxes, or mortgage payments—can usually seek reimbursement (called “contribution”) in a partition case. The request is handled as part of the partition accounting and is typically paid by adjusting each owner’s share of the property or sale proceeds, rather than by a separate check up front.

Understanding the Problem

In a North Carolina co-ownership situation, can a cotenant recover money spent on repairs and maintenance after paying those costs to preserve a jointly owned home? When one cotenant carries the costs of keeping the property in good condition while another cotenant does not contribute, the key decision point is whether those payments qualify as the type of shared “carrying costs” or reimbursable improvements that a court can credit back during a partition case. The issue commonly comes up when former partners still hold title together and the property will be divided or sold through the clerk of superior court.

Apply the Law

North Carolina’s partition statutes allow a cotenant to seek “contribution” for certain expenses paid to preserve the property and protect the co-owners’ interests. The law calls these expenses “carrying costs” and includes items like repairs, property taxes, homeowner’s insurance, and payments on the loan used to acquire the property. North Carolina also allows a cotenant to seek credit for improvements, but the reimbursable amount is limited to the lesser of the improvement cost or the value added by the improvement at the start of the partition case. These requests are made within the partition proceeding (typically before the clerk of superior court) and are resolved by credits/adjustments in the partition or in the division of sale proceeds.

Key Requirements

Cotenant paid qualifying “carrying costs” or reimbursable improvements: The payments generally must be tied to preserving the property’s value (repairs, insurance, taxes, mortgage) or improving it (with reimbursement limits).
Request is raised in the partition case with supporting proof: The cotenant must affirmatively apply for contribution and document amounts paid (receipts, invoices, canceled checks, lender histories, insurance statements).
The court accounts for fairness when dividing the property or sale proceeds: Reimbursement is usually handled by adjusting each cotenant’s share (sometimes through an “owelty” adjustment if the property is divided in kind), rather than treating it as a stand-alone lawsuit for damages.

What the Statutes Say

N.C. Gen. Stat. § 46A-27 (Carrying costs; improvements; right to contribution) – Allows a cotenant to seek contribution for carrying costs (including repairs, taxes, insurance, and acquisition-loan payments) and limited reimbursement for improvements; includes a 10-year lookback limit for property tax contribution.
N.C. Gen. Stat. § 46A-51 (Apportioning shares; owelty; adjusting for contribution) – Allows commissioners to adjust shares and any owelty to account for a contribution order made in the partition case.

Analysis

Apply the Rule to the Facts: The facts describe co-owners of a residence where one cotenant has paid the mortgage when needed and also paid significant repairs and maintenance. Under North Carolina’s partition rules, repairs and mortgage payments can fall within “carrying costs,” which supports a request for contribution in the partition proceeding. The ability to recover depends heavily on proof of payment and whether the items were truly necessary to preserve value (repairs/maintenance) versus optional upgrades (improvements subject to a “lesser of cost or value added” limit). Rent paid by an occupant can also affect the overall accounting in the case because the court can consider the financial flows connected to the property when dividing proceeds.

Process & Timing

Who files: A cotenant seeking partition and reimbursement. Where: The clerk of superior court in the county where the property is located in North Carolina. What: A partition petition and an application/request in the partition case for contribution/credits, supported by documentation (repair invoices, proof of payment, tax and insurance statements, mortgage histories). When: For a partition sale, the contribution request can be asserted during the partition proceeding; for an actual (in-kind) partition, it must be asserted before the commissioners file their report.
Accounting and evidence: The parties typically exchange documents showing (a) carrying costs paid, (b) improvements and their effect on value, and (c) any rents or other income received. Disputes often center on whether an item was a “repair” (preserving value) or an “improvement” (upgrade), and whether the amount claimed matches the proof.
How reimbursement is applied: If the clerk (and, where applicable, commissioners) allows contribution, the case usually applies a credit to the paying cotenant through the division of the property or by adjusting sale proceeds at closing/distribution. If the property is divided in kind and one side receives a higher-value share, the court can use an owelty adjustment and can factor contribution credits into that calculation.

Exceptions & Pitfalls

Repairs vs. improvements: Routine or necessary repairs are commonly treated as “carrying costs,” but remodels and upgrades may be treated as “improvements,” which are reimbursed only up to the lesser of cost or value added as of the start of the partition case.
Property tax limit: North Carolina limits contribution for property taxes to taxes paid in the 10 years before the partition petition is filed (plus interest at the legal rate). Older tax payments may not be recoverable through the partition contribution statute.
Poor records: Cash payments, missing invoices, or unclear bank records frequently lead to reduced credits. Clean documentation and a clear timeline of payments matter.
Rent and occupancy issues: When one cotenant collects rent (or has exclusive use) while another pays expenses, the accounting can become more complicated. The net result may depend on how the case treats income received versus expenses paid.
Timing and procedure: Contribution is not automatic. It generally requires an application/request within the partition proceeding and compliance with local procedural requirements in the clerk’s office.

Conclusion

In North Carolina, a cotenant who paid more than their share of qualifying “carrying costs” (including repairs, insurance, property taxes, and certain mortgage payments) can typically seek reimbursement as “contribution” in a partition case, with improvements reimbursed only up to the lesser of cost or value added. The most important next step is to file a partition petition with the clerk of superior court and assert a contribution claim with supporting records, including any property taxes paid within the 10 years before filing.

Talk to a Partition Action Attorney

If a co-owned home has ongoing expenses and one owner has been paying for repairs, maintenance, taxes, insurance, or the mortgage, a partition case may allow reimbursement through contribution and a fair accounting. Our firm has experienced attorneys who can help explain options, document the claim, and track deadlines in the clerk’s office. Call us today at (919) 341-7055.

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.