Detailed Answer
When one heir pays for a valuation of estate property (for example, a real‑property appraisal or a business valuation) and the property is later bought out by or from a co‑heir, whether the paying heir can force reimbursement before closing depends on several things under Nevada law: the role of the person who ordered the appraisal, any written agreement between heirs, whether the appraisal was an estate administration expense, and whether a court becomes involved (for example in a partition or probate proceeding).
Key legal principles (how Nevada law typically treats appraisal costs)
- Agreement controls: If the co‑heirs signed a written buyout agreement (or escrow instructions) that allocates appraisal costs, that contract generally governs payment. A buyer can be required to pay what the parties agreed.
- Estate administration vs. private expense: If a personal representative (executor or administrator) ordered the appraisal as part of administering the estate, the appraisal is usually treated as an estate administration expense and may be paid from estate funds before distributions. If a private heir ordered and paid for an appraisal for their own benefit (to determine whether to buy out other heirs), the cost is usually a personal expense unless the parties agree otherwise or a court orders reimbursement.
- Partition actions and court allocation: If co‑owners cannot agree and one files for partition (sale or division of the property), Nevada’s partition laws let the court order valuations and can allocate costs among the parties. See Nevada’s statutes on partition actions for owners of property: NRS Chapter 40 (Actions Concerning Title to Real Property). A court in a partition action may apportion appraisal and other costs equitably between the parties. Relevant statutory text: https://www.leg.state.nv.us/NRS/NRS-040.html
Typical outcomes in common situations
Below are typical outcomes depending on who ordered and paid for the appraisal:
- If the buyer and seller (co‑heirs) signed a buyout agreement that requires the buyer to pay the appraisal or share the cost, the buyer must pay before closing per that contract.
- If the estate’s personal representative ordered the appraisal and it was necessary for estate administration, the appraisal is an estate expense and is paid from estate assets before distributions. See Nevada statutes governing probate and administration for related duties of personal representatives: https://www.leg.state.nv.us/NRS/NRS-145.html
- If one co‑heir hired and paid for the appraisal unilaterally to decide whether to buy out others, but there is no agreement assigning that cost, the paying co‑heir cannot usually force reimbursement at the door unless the other co‑heir agrees, the buyer accepts the appraisal as the valuation and agrees to reimburse, or a court orders reimbursement in a partition or equitable relief action.
- If the parties cannot agree, the paying co‑heir can seek a court order (for example, through a partition action or a probate accounting) asking the court to (a) order an equitable allocation of appraisal costs, (b) reduce the buyout price by the appraisal cost, or (c) include the cost as an offset. Courts decide these matters case‑by‑case and may consider who benefited, whether the appraisal was necessary, and fairness.
Practical steps to take now
1) Review any written agreement, escrow instructions, or emails that discuss appraisal responsibility. A signed agreement that allocates costs is usually enforceable.
2) If the appraisal was done by the estate’s personal representative, request a copy of the estate accounting or contact the personal representative to confirm the appraisal was charged to estate funds.
3) If you paid for the appraisal and want reimbursement before closing, make a clear written demand to the co‑heir (and to escrow if applicable) that you expect reimbursement or an offset to the buyout price. Keep records of payment and the appraisal invoice.
4) Propose a simple resolution: split the appraisal cost, deduct it from the buyer’s purchase amount, or have the buyer pay it into escrow at closing.
5) If negotiations fail, consider mediation or a limited court action—either a partition action for jointly owned property or a probate accounting if the estate administration is involved. In a partition action, the court has statutory authority related to division and costs (see NRS Chapter 40: https://www.leg.state.nv.us/NRS/NRS-040.html).
Hypothetical example
Two siblings inherit a house. Sibling A pays $600 for a licensed appraisal to evaluate a buyout. There is no written agreement about appraisal costs. Sibling B refuses to reimburse before closing. Options for Sibling A include: (a) offer to deduct $600 from the buyout price and document the agreement in writing; (b) insist the buyer deposit the $600 into escrow at closing; or (c) file for partition or seek court relief to have costs apportioned. If the probate personal representative ordered the appraisal, the cost may be paid from the estate first.
Helpful Hints
- Get agreements in writing. Before ordering any appraisal, get a signed agreement allocating costs and spelling out whether the appraisal is final for buyout purposes.
- Use escrow. If a buyout is imminent, require reimbursement or an offset to go through escrow so the paying heir gets paid at closing.
- Document payments. Keep receipts, invoices, and the appraiser’s engagement letter showing who ordered and who paid.
- Check who ordered the appraisal. If the personal representative ordered it, treat it as an estate expense; if an heir ordered it privately, treat it as a personal expense unless agreed otherwise.
- Consider mediation. A short mediation can often resolve cost disputes faster and cheaper than litigation.
- Talk to a probate/real‑property attorney. If the dispute is significant, an attorney can review agreements, escrow instructions, and advise on whether court filing (partition or probate accounting) is appropriate.
Resources: Nevada partition statutes (NRS Chapter 40): https://www.leg.state.nv.us/NRS/NRS-040.html. Nevada probate/estate administration statutes (see Nevada Revised Statutes for administration duties): https://www.leg.state.nv.us/NRS/
Disclaimer: This article explains general Nevada legal concepts and common practical approaches. It is not legal advice and does not create an attorney‑client relationship. For advice about a specific situation, consult a licensed Nevada attorney who can review the facts and documents.