Partition of Real Property, Carrying Costs and Rent; Need to Know. Where a real property is jointly owned and the parties can not agree on its division, sale and/or how to divide the proceeds of the sale, the property can be partitioned, and/or sold by the Court.
When partitioning a property issues arise as to carrying costs, rental value, and rental receipts, who should pay what, and who should receive what credits.
If both parties were in possession of the real property, the carrying costs costs and any rental profits are normally split equally.
If one party is out of possession, they would normally receive a credit for half of the fair rental value of the property after deduction of half of the properties’ expenses.
In the case of Cauble v. Kaczmarski, the Third District Court of Appeals for the State of Florida considered the partition of real property, carrying costs, and rent. The court determined that one of the parties was not in joint possession of a property as he had no key, having surrendered possession of the unit to the other party who rented it out and kept all rental proceeds.
The Court held that therefore that parties use of the property was disproportionate to his fifty-percent ownership interest. As an out-of-possession co-owner, was (i) not responsible for the in possession co-owner’s half of the carrying costs and (ii) entitled to have the rent collected by the in possession co-owner from Castle Beach applied as a credit against the other co-owner’s obligation for her half of the Castle Beach carrying costs.
If you have questions about partition of real property, carrying costs, and credits, call us to discuss your situation. (786) 539-4935.
Proven, Experienced, Divorce, Family and Litigation Lawyers in Miami