Detailed answer — When a co‑owner must reimburse an appraisal under New York law
Short answer: usually no — you cannot force a co‑heir to reimburse an appraisal before a buyout unless the co‑heir agreed to pay or a court orders reimbursement. However, there are practical and legal pathways that can make you whole or give you credit for the appraisal cost during a negotiated buyout, an estate administration, or a partition proceeding.
Why you usually cannot unilaterally demand reimbursement
Under New York property and estate law, co‑owners (including co‑heirs who own property as part of an estate) each have equal rights to the property. One co‑owner’s decision to hire an appraiser is a unilateral expense that, by itself, does not automatically create a legally enforceable right to immediate reimbursement from the other co‑owner. Absent a prior agreement, a statutory rule, or a court order, reimbursement depends on:
- whether the appraisal was an authorized estate administration expense (paid from the estate),
- whether the co‑heirs made an express agreement (written or oral) to share appraisal costs, or
- whether a court (e.g., in a Surrogate’s Court accounting or a partition action) orders contribution or apportions costs.
Key legal paths where reimbursement can be required
1) Written agreement or settlement: If you and the co‑heir sign a buyout agreement that says the buyer will reimburse the appraiser or the seller may deduct appraisal costs from the buyout price, that contract term is enforceable under New York contract law.
2) Estate administration: If you are the personal representative (executor or administrator) handling estate property, the costs of valuing estate assets (including reasonable appraisal fees) are typically paid as administration expenses from estate funds. The Surrogate’s Court oversees accounting of estate expenses. See the Surrogate’s Court Procedure Act (SCPA) for guidance about administration and court supervision: https://www.nysenate.gov/legislation/laws/SCPA.
3) Contribution in partition or accounting proceedings: If co‑heirs cannot agree and one files a partition action or seeks a judicial accounting, the court can consider who should bear or share costs for valuation, sale, or preservation of the property. The New York Real Property Actions and Proceedings Law (RPAPL) governs partition actions: https://www.nysenate.gov/legislation/laws/RPAPL. A court may (in its discretion) allocate costs or credit appraisal fees against a party’s share where equitable.
Practical examples (hypotheticals)
Scenario A — No agreement, co‑heir refuses to reimburse: You pay $1,200 for an appraisal to set a fair buyout price. The co‑heir refuses to pay. You may still use the appraisal in negotiations. If the co‑heir will not cooperate, you can either (1) propose an offset—reduce the buyout price by the appraisal fee or (2) seek a court solution (partition or Surrogate’s Court accounting) to have the court allocate costs.
Scenario B — You are the executor: You hire an appraiser as an estate expense to determine asset value. You should pay the appraiser from estate funds and reflect that cost in your inventory and accounting. Heirs may contest the reasonableness later, and the Surrogate’s Court will rule on proper administration expenses.
Scenario C — Written buyout agreement: Before closing a buyout, you and the co‑heir sign a settlement that requires the buyer to reimburse appraisal fees at closing. That contract creates a direct right to reimbursement enforceable in court if breached.
What courts consider when awarding contribution or allocating costs
- Whether the appraisal was necessary for preservation or disposition of the property.
- The reasonableness of the appraisal cost.
- Whether the appraisal primarily benefitted all co‑owners (for example, to determine fair market value during a buyout or sale).
- Any prior agreement or communications about sharing valuation costs.
Actionable steps to protect yourself
- Get agreements in writing. Before ordering an appraisal, present a short written agreement: who pays, whether the fee is refundable, and whether the cost will be deducted from the buyout price.
- Keep written evidence of benefit. Save emails, appraiser engagement letters, and copies of the appraisal to show that the appraisal was reasonable and was used to value the asset for the estate or sale.
- If you are an executor, pay appraisal fees from estate funds and record the expense in the inventory and accountings you file with Surrogate’s Court (SCPA).
- Consider offset language in buyout offers: propose that the appraisal fee be deducted from the buyout amount if the other side refuses to reimburse upfront.
- If the co‑heir refuses and stakes are significant, consider mediation or filing a partition action under the RPAPL to get a court determination (RPAPL).
When you should talk to an attorney
Talk to a lawyer if:
- The appraisal fee is substantial relative to the estate value.
- The co‑heir is refusing to engage in settlement talks or refuses to sign a simple cost‑sharing agreement.
- You are an executor and heirs threaten to sue over administration expenses.
- You are considering a partition action or want a court order about allocation of costs.
Relevant statutes and resources
- Surrogate’s Court Procedure Act (SCPA) — for estate administration, accounting, and court oversight: https://www.nysenate.gov/legislation/laws/SCPA
- Real Property Actions and Proceedings Law (RPAPL) — for partition actions and court‑ordered sale/allocation of costs: https://www.nysenate.gov/legislation/laws/RPAPL
Helpful hints
- Always get a written fee agreement with the appraiser that explains what the appraisal covers and who ordered it.
- Before paying, ask the co‑heir to sign a short agreement (email is usually fine) agreeing to split the cost or to have it deducted from the buyout price; a signed agreement removes most disputes.
- If you are the estate representative, document the appraisal as an estate administration expense and file it in the accountings you submit to the Surrogate’s Court.
- Use the appraisal strategically: even if you cannot force reimbursement, it gives you objective proof of value that helps in negotiations or in court.
- If the other side objects to the appraisal or its cost, get a second opinion and keep records showing the appraisal’s reasonableness (credentials, comparable sales, itemized fee).
- Consider mediation before filing a lawsuit; it is faster and usually cheaper than court and often leads to a written buyout agreement that allocates appraisal costs.
Final takeaway: Without a prior agreement or a court order, you generally cannot force a co‑heir to reimburse an appraisal before a buyout in New York. You can, however, protect yourself by getting written agreements, using estate funds if you’re an executor, seeking court allocation in partition/accounting actions, or negotiating an offset in the buyout price.
Disclaimer: This article explains general New York law information and is not legal advice. It does not create an attorney‑client relationship. For advice about a specific situation, consult a New York attorney familiar with estate administration and real property or contact the Surrogate’s Court in your county.