Can a co‑heir be required to reimburse appraisal costs before an estate buyout? — New Mexico
Detailed answer
Short answer: Usually no—unless you have an agreement, the personal representative (executor/administrator) or a court orders it. In New Mexico, one heir generally cannot unilaterally force another heir to reimburse appraisal costs before finishing a buyout unless the parties agree or the probate/partition process provides for it.
Why that is
When family members own a decedent’s property together as heirs, valuation (an appraisal) is a step used to determine fair market value for a buyout or sale. Who pays for that appraisal depends on the context:
- Agreement between heirs: If the heirs or prospective buyer and seller sign a written agreement allocating appraisal costs, that contract controls. You can require reimbursement if the contract says so.
- Probate administration: If a personal representative orders an appraisal as an ordinary expense of administering the estate, those costs are typically paid from estate funds and are treated as administration expenses. Under New Mexico probate practice and the general powers given to personal representatives, costs of valuing estate property may be paid from the estate and ultimately charged to the estate’s disposition (see the New Mexico Probate Code, Chapter 45). For official text, see New Mexico statutes and probate resources at the state sites linked below.
- Buyout negotiation outside probate: If heirs negotiate a buyout privately (one heir purchases another’s interest), the buyer and seller can contract about who pays the appraisal. Common solutions are: (a) buyer pays up front and is reimbursed from the buyout price; (b) each party pays half; or (c) buyer pays but reduces the purchase price by the appraisal cost.
- Partition or court involvement: If one heir files a partition action (seeking sale or division through court), a judge can allocate costs (including valuation and appraisal) among the parties as part of the court’s order. In that situation, a court can require one party to reimburse another or charge costs against the property sale proceeds.
Practical consequences in New Mexico
Because New Mexico law gives courts and personal representatives authority to allocate administration and court costs, you can often obtain reimbursement only by one of these means:
- Reach a written agreement with the co‑heir spelling out reimbursement or credit against the buyout price.
- Ask the personal representative to treat the appraisal as an estate expense paid from estate funds, then have the estate account for and absorb or allocate that cost pursuant to probate rules.
- If negotiation fails, ask the probate or district court (in a partition or probate accounting) to allocate the appraisal cost against the co‑heir or the estate. A court can order reimbursement or an offset in the buyout price.
Example (hypothetical)
Suppose three siblings inherit a rental house. One sibling contracts for a professional appraisal to support a buyout. The buying sibling pays $700 for the appraisal and asks the other two to each reimburse $350 before finalizing the buyout. If the others refuse, the buyer has three main options under New Mexico practice:
- Get the other siblings to sign a written amendment to the buyout agreement making them responsible for their shares of the appraisal cost.
- Ask the estate’s personal representative to pay the appraisal from estate funds as an administration expense and reflect it in the estate accounting.
- File a partition or probate petition asking the court to order an equitable allocation of costs or to credit the appraisal amount against the purchase price at closing.
Key legal references and where to read them
New Mexico’s probate rules and statutes govern the administrator’s powers, estate accounting, and how costs are handled in probate. For the official New Mexico statutes and probate information, see:
- New Mexico Compilation Commission — NMSA (official statutes): https://www.nmcompcomm.us/nmsa/
- New Mexico Legislature (session laws and statutes search): https://www.nmlegis.gov/
- New Mexico Courts (probate self‑help and court procedures): https://www.nmcourts.gov/
Those resources will help you locate the Probate Code (commonly cited as NMSA Chapter 45) and local rules governing probate administration and partition actions.
Bottom line
If you want to require a co‑heir to reimburse an appraisal before completing a buyout in New Mexico, the easiest path is a written agreement that allocates the cost or an agreement that credits the appraisal against the buyout price. If the co‑heir refuses, you will likely need the personal representative’s cooperation or a court order to compel reimbursement or allocation.
Disclaimer: This is general information and not legal advice. For advice about your specific situation in New Mexico, consult a licensed New Mexico probate or real estate attorney or contact the probate court handling the estate.
Helpful hints
- Get everything in writing. A short amendment or memo showing who pays the appraisal or how cost will be credited prevents disputes.
- Consider splitting appraisal costs equally or having the buyer pay and receive a credit against the purchase price—both are common and simple.
- Use the estate’s personal representative for valuations when possible; paying from estate funds avoids personal disputes and appears on the estate accounting.
- Keep receipts and the appraiser’s engagement letter. If the matter goes to court, clear documentation helps the judge allocate costs fairly.
- Obtain more than one valuation if heirs suspect bias. If parties cannot agree on an appraiser, ask the court to appoint a neutral appraiser or order a market sale.
- If you must file to resolve the dispute, a probate or partition petition can ask the court to allocate appraisal costs and adjust the buyout price accordingly.
- Talk to a New Mexico attorney early if the appraisal cost is significant relative to the estate value—legal counsel can draft agreements and, when needed, file petitions to protect your rights.