Co-owning a property can be a great arrangement—until someone drops the ball on their responsibilities. If your co-owner is refusing to pay their share of the property taxes, it puts the whole property at risk. Tax liens, penalties, or even foreclosure could be on the horizon if the taxes remain unpaid. The good news? You do have options.
Immediate Steps to Protect Yourself
If your co-owner refuses to pay their share of property taxes, you want to act quickly to protect your financial and legal interests. This will help you minimize immediate risks and set the groundwork for resolving the issue effectively.
Pay the Taxes to Avoid Immediate Penalties
It might feel like you’re letting your co-owner off the hook, but paying the taxes yourself is often the most practical way to prevent costly penalties, interest accrual, or even tax liens being placed on the property. Tax liens can damage the property’s marketability and potentially lead to a foreclosure sale if left unresolved. Consider this a stopgap measure to protect your investment while you explore ways to recover the amount owed.
If the amount is substantial and paying it all at once isn’t feasible, contact your local tax authority to inquire about installment payment plans. In some Florida counties, you may also qualify for discounts by paying early or making partial payments before the due date. This keeps you in compliance while avoiding the most severe penalties.
Document Everything
Keep meticulous records of your payments, including receipts from the tax authority, as well as any related correspondence with your co-owner. If your co-owner has made verbal commitments about their share of the taxes, document these conversations in writing—follow up with an email summarizing the discussion and ask them to confirm.
Beyond payment records, log any additional expenses you incur as a result of their refusal to pay, such as late fees or legal costs. This evidence will strengthen your case if you decide to pursue legal action for reimbursement.
Knowing Your Legal Options
When a co-owner refuses to pay property taxes, legal recourse may become necessary to protect your financial interests. Florida law provides several avenues to resolve these disputes, whether you’re seeking reimbursement or a permanent solution to co-ownership conflicts.
1. Contribution Actions
A contribution action is a legal remedy that allows you to recover the unpaid taxes from your co-owner. Under Florida law, co-owners have a shared responsibility to contribute proportionally to the costs associated with the property, including taxes. If one party defaults, the other can file a lawsuit demanding repayment of the delinquent share.
To pursue this, you’ll need detailed documentation of the taxes you’ve paid, proof of your co-owner’s share, and evidence of their refusal or inability to pay. A successful contribution action can result in a court order requiring your co-owner to reimburse you, often with added interest.
2. Partition Actions
When financial disputes between co-owners cannot be resolved, a partition action might be the best long-term solution. A partition lawsuit allows a co-owner to petition the court to either divide the property physically (if feasible) or sell it and distribute the proceeds equitably among the owners.
In Florida, partition actions are a common remedy for co-ownership disputes, especially when one party consistently fails to meet financial obligations. While this process can take several months and may require legal fees, it provides a definitive resolution. A judge may also take unpaid expenses, such as property taxes, into account when dividing the sale proceeds, ensuring you’re compensated for covering your co-owner’s share.
3. Levying a Lien Against the Co-Owner
Another option is to file a lien against your co-owner’s interest in the property. This is particularly useful if selling the property isn’t ideal or if your co-owner is likely to sell their share in the future. The lien serves as a legal claim on their portion of the property, ensuring that when it’s sold or refinanced, you’ll be reimbursed for your expenses.
To file a lien, you’ll need to demonstrate the validity of your claim, including detailed records of payments and any agreements or obligations your co-owner has breached. Working with an attorney to draft and file the lien correctly is essential to ensure it’s enforceable.
Mediation and Negotiation
Before escalating to formal legal action, consider whether mediation or negotiation could resolve the dispute more efficiently. These approaches are less adversarial, often faster, and can save both parties time and money compared to a lengthy court battle.
Using a Neutral Third Party
Mediation involves bringing in a neutral third party—typically a professional mediator—to facilitate discussions between you and your co-owner. The mediator’s role is to help both parties find common ground and craft a mutually acceptable agreement. In Florida, mediation is commonly used in property disputes and can even be required by the court before certain cases proceed.
During mediation, you can address not only the immediate issue of unpaid property taxes but also broader concerns about co-ownership responsibilities. Agreements reached in mediation can be formalized in writing and, if necessary, filed with the court to ensure enforceability.
Drafting or Amending a Co-Ownership Agreement
If your property is not already governed by a formal co-ownership agreement, this is an opportunity to establish one. A well-crafted agreement can outline financial responsibilities, payment schedules, and consequences for noncompliance. If an agreement exists but has proven ineffective, consider revising it to address recurring issues like property taxes.
For example, you could include provisions requiring both parties to contribute to a shared escrow account for tax payments. This approach ensures that funds are available when taxes are due and prevents one party from shirking their obligations. Give us a call to draft or revise the agreement so it complies with Florida law and protects your interests.
Working with a Real Estate Attorney
When disputes over unpaid property taxes escalate or become too complex to resolve on your own, an attorney can be your strongest ally. Florida law surrounding co-ownership and property taxes can be intricate, and having an expert in your corner ensures you take the right steps to protect your financial and legal interests.
Navigating Partition Actions
Partition actions are one of the most effective tools for resolving co-ownership disputes, but the process can be daunting without professional guidance. An experienced attorney can evaluate your situation, explain the potential outcomes, and file the necessary paperwork to initiate the lawsuit. They will also represent your interests in court, ensuring that factors like unpaid taxes are considered during the property division or sale process.
Filing a Contribution Action
Recovering unpaid property taxes through a contribution action requires careful preparation, from gathering evidence to drafting legal claims. An attorney can streamline this process, ensuring your claim is filed correctly and supported by the documentation needed to succeed in court. They can also negotiate on your behalf, potentially resolving the issue without litigation.
Drafting or Enforcing Co-Ownership Agreements
Whether you need to draft a new co-ownership agreement or enforce an existing one, an attorney can ensure it’s comprehensive and enforceable. This includes adding clauses to prevent future disputes, such as escrow requirements for tax payments or penalties for noncompliance. If your co-owner has breached an agreement, an attorney can take steps to enforce it through mediation, arbitration, or legal proceedings.
Preventing Future Issues
They can also provide preventative advice, helping you avoid similar disputes in the future. They might suggest steps like setting up automatic payments for property taxes or establishing a formal communication process for shared expenses. This proactive approach ensures that co-ownership responsibilities are clear and enforceable from the outset.
Conclusion
Unpaid property taxes by a co-owner can be stressful and financially risky, but you don’t have to face the situation alone. By taking proactive steps—like covering the taxes temporarily, documenting everything, and exploring your legal options—you can protect your investment and work toward a resolution. Whether it’s through a contribution claim, a partition action, or mediation, there are clear paths to address the issue effectively.
To ensure the best outcome, consulting a real estate attorney is paramount. They can help you work through Florida’s complex co-ownership laws, represent your interests in court, and even guide you in setting up agreements to prevent future disputes. With the right strategy and support, you can resolve these challenges and regain peace of mind.
If you’re dealing with this issue, don’t wait. Reach out to our offices today to explore your options and take the first step toward resolving your co-ownership dispute.
