Advice on co-owned property

Can You Recover Extra Payments Made Towards a Co-Owned Property?

When two people, either not married, or married with a separation of property arrangement, agree to purchase a house on a 50/50 split, it’s expected that each will contribute equally to the purchase and ongoing costs. However, it is not uncommon for one party to end up paying more than their share, either towards the initial purchase or for additional expenses like protection policy of the property, its upkeep, property taxes, etc. In today’s article, we explore how the Spanish Civil Code addresses these imbalances and whether the paying party has a legal right to recover the excess.

What Happens If You Paid More Than Half?.

Imagine Sarah and Tom purchase a house together in Spain. Although the title is registered in the Spanish Land Registry in both their names equally, Sarah covered the entire purchase price with her own funds. In fact, she continues to pay for all maintenance expenses during the next years after the purchase. If no prior agreement exists between them, Sarah would have the right to request reimbursement for the overpayment, as established by the Civil Code. Specifically, Article 1158.  That allows someone who has made payments on behalf of another to seek reimbursement for the amount.

Recovering Costs for Maintenance and Other Expenses.

Beyond the initial purchase, ongoing expenses like insurance, repairs, and property taxes also need to be shared equally among co-owners. If one person ends up paying these costs entirely, the law grants them the right to demand that the other owner contributes their share. This right is established under a different article of the Spanish Civil Code. In this case, art. 1145.

What About Repayments on the Property Loan?.

In situations where a mortgage is involved, in principle, both co-owners are responsible for repaying the loan. Although in these cases, it is essential to check the content of the documents signed with the bank. If one party covers the full mortgage instalments, the paying party could claim back the excess from the other. Spanish law ensures that any amount exceeding 50% of the total obligation can be reclaimed, keeping financial contributions balanced between co-owners.

If you find yourself in a situation where you have contributed more than your fair share towards the purchase of a property. Or you have covered significant expenses on your own, you might be entitled to seek reimbursement. At White-Baos Lawyers, we understand the complexities involved in such cases and are here to help you navigate the process. Reach out to us now.

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