Detailed answer — how Maryland law treats appraisal costs in an estate buyout

There are three common situations in which an appraisal cost can arise when heirs are working toward a buyout of jointly inherited property:

1. Appraisal hired and paid by the personal representative (PR) during formal probate)

   If the estate is open in probate and the personal representative hires and pays for an appraisal as part of administering the estate, the appraisal is usually an estate administration expense. Under Maryland probate practice, administration expenses (including reasonable fees for necessary appraisals) are typically paid out of the estate before net distributions to heirs. The PR should include that cost in the estate accounting and seek Orphans’ Court approval when required. See general Maryland probate and Orphans’ Court resources: Maryland Register of Wills and Maryland Orphans’ Courts.

2. One co‑heir hires and pays for the appraisal privately (no PR or no estate payment)

   If a co‑heir independently orders and pays for an appraisal (for example, to value property before negotiating a buyout) that co‑heir generally cannot unilaterally force the other co‑heir(s) to reimburse the appraisal cost unless the parties agreed in writing or a court orders reimbursement. In other words, without an agreement or court ruling, the paying heir normally bears that out‑of‑pocket expense.

3. Heirs reach a buyout agreement (private settlement) or a court partitions or sells the property

   Heirs can contract among themselves to allocate appraisal costs. Typical solutions include:

   • Deducting the appraisal fee from the buyout purchase price (e.g., buyer pays $X less appraiser fee).
   • Splitting the appraisal fee pro rata (e.g., equally or by share percentages).
   • Having the estate (through the PR) pay the appraisal and treating it as an estate expense.

   If the heirs cannot agree and a co‑heir files a partition action (asking a court to divide or sell the property), the court may allocate partition‑related costs (including valuation expenses) as part of the judgment. Partition and other remedies are handled in Maryland circuit courts and can shift costs depending on the outcome.

Practical rules you can rely on in Maryland

• If the PR ordered the appraisal and paid for it from estate funds, the cost is typically an estate administration expense that reduces distributable assets unless the Orphans’ Court disapproves.
• If an individual co‑heir ordered an appraisal without estate authority, collect written agreement from other heirs to allocate costs if you want reimbursement. Absent agreement, you cannot compel reimbursement simply because you paid for the appraisal.
• A co‑heir can seek repayment through negotiation, mediation, a civil claim (small claims or circuit court) or by asking the Orphans’ Court to approve a post‑distribution accounting that allocates the expense. Court remedies cost time and money; written agreements save time.

Relevant Maryland resources and statutes

Maryland’s probate and Orphans’ Court procedures govern estate administration, approvals, and accountings. For statutes and rules governing Estates & Trusts in Maryland, consult the Maryland Code and the Maryland Judiciary resources:

• Maryland Code — Estates & Trusts (general statutes)
• Maryland Register of Wills (local probate offices and filing procedures)
• Maryland Orphans’ Courts (probate courts that approve accountings and transactions)

Because statute sections and local practice can affect outcomes (for example, how the Orphans’ Court treats an accounting or settlement), you may want to consult the applicable provisions of the Estates & Trusts Article and the local Register of Wills or Orphans’ Court clerk.

Example hypotheticals (how the rule works in practice)

Hypothetical A — Estate under probate: The PR hires a licensed appraiser and pays $900 from the estate checking account. Before distributions, the PR lists the $900 as an administration expense in the estate accounting. The Orphans’ Court reviews the accounting; if it approves the appraisal as reasonable and necessary, heirs receive their shares after that expense is paid.

Hypothetical B — Private appraisal by one heir: Two siblings inherit a house. Sibling A hires an appraiser and pays $650 so A can make an offer to buy the other sibling out. Sibling B refuses to reimburse. Unless they had a prior agreement, Sibling A cannot force B to pay the $650. A can (1) try to negotiate reducing the buyout price to cover the cost, (2) file a small‑claims suit for reimbursement, or (3) file for partition, inviting court allocation of valuation expenses.

Helpful hints — steps to protect yourself and increase the chance of reimbursement

• Get written agreements. Before ordering an appraisal, ask co‑heirs to sign a short written agreement specifying who pays, how costs will be split, or how the cost will affect the buyout price.
• Use the personal representative (if one exists). If the estate is open, have the PR retain and pay the appraiser so the fee is treated as an estate expense and handled in the court‑approved accounting.
• Keep invoices and a paper trail. Preserve the appraiser’s invoice, the engagement letter, and proof of payment. Itemized bills and proof of necessity help if you later seek reimbursement through the court.
• Consider deducting the fee from the buyout. Make the reimbursement part of the buyout calculation to avoid separate collections.
• Ask the Orphans’ Court for guidance when in doubt. If the estate is in probate, submit the proposed appraisal expense on the estate accounting or request the Court’s approval for unusual costs.
• Mediation first. If co‑heirs dispute payment, mediation is often faster and cheaper than litigation and can produce an enforceable agreement.
• Factor tax and basis effects into the price. An appraisal can affect tax basis and capital gains; discuss those implications with a tax advisor when valuing buyouts.
• Consult a Maryland probate attorney for complex cases. Cases involving large assets, contested accountings, or partition actions benefit from lawyer guidance.

Disclaimer: This article explains general principles under Maryland law and is not legal advice. Every estate and set of facts differs. For advice tailored to your situation, contact a licensed Maryland attorney or the Register of Wills in the county handling the estate.