Arkansas: Reimbursing an Appraisal Before an Estate Buyout | Arkansas Probate | FastCounsel
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Arkansas: Reimbursing an Appraisal Before an Estate Buyout

When a co‑owner must reimburse an appraisal before completing an estate buyout — Arkansas guidance

Detailed Answer

This section explains, in plain language, what typically happens in Arkansas when one heir pays for a recent appraisal and then seeks to finalize a buyout of another heir’s share of estate property.

Who pays for an appraisal?

Generally, who pays for an appraisal depends on agreement among the heirs, the direction of the personal representative (if the estate is open), or a court order. If you voluntarily hire and pay an appraiser without an agreement that the other co‑heir will reimburse you, you usually cannot unilaterally force that co‑heir to pay you back before a buyout closes unless:

  • there is a written agreement requiring reimbursement, or
  • a probate court or other court orders reimbursement because the appraisal was necessary and properly charged to the estate or to the co‑heirs in a particular proportion.

Common scenarios in Arkansas and how they play out

Scenario A — Joint agreement in writing: If you and the co‑heir sign an agreement before the appraisal (or soon after) that allocates appraisal cost, the agreement controls. A written agreement that the buyer will reimburse appraisal costs at closing is enforceable as a contract.

Scenario B — Personal representative orders appraisal: When an estate has a personal representative (executor or administrator), that representative often orders appraisals as part of estate administration. In that case, appraisal fees are normally estate expenses payable from estate assets unless the will, an agreement of the heirs, or the court says otherwise.

Scenario C — One heir independently orders an appraisal to support a buyout: If you hire the appraiser on your own to determine fair market value and then propose a buyout, the other heir can accept your buyout figure (and reimburse you) or negotiate. If they refuse to reimburse and no prior agreement exists, you may be limited to seeking reimbursement through negotiation, mediation, or by asking a probate or civil court to allocate costs — which takes time and may not guarantee full recovery of the fee.

Can you require reimbursement before closing?

Short answer: only if you have a contractual or court basis to do so. In practice that means:

  • If there is a signed buyout agreement or settlement that conditions closing on reimbursement, you can require payment at closing.
  • If there is no written agreement, you can ask for reimbursement and try to make it a condition of the buyout, but the co‑heir can refuse; you would then need to use mediation or court action to enforce reimbursement.
  • If the appraisal was ordered and paid by the personal representative as an estate expense, it is typically paid from estate funds rather than by an individual co‑heir unless the probate court orders otherwise.

If the co‑heir refuses to reimburse

Options include negotiation, proposing that the appraisal cost be split or treated as a credit in the buyout calculation, mediation, or filing a petition in probate or circuit court (for example, in a partition or settlement action) asking the court to allocate costs. Courts can order cost allocation when one party’s actions were reasonable and necessary to administer or divide the property.

Practical considerations

  • Keep written documentation: engagement letter with the appraiser, the invoice, and any communications with the co‑heir. Written agreements carry the most weight.
  • Get an invoice tied to the estate and an appraisal report that states the appraisal purpose. That helps if you later ask a court to allocate the fee as an estate expense or to require reimbursement.
  • Consider asking the co‑heir to sign an interim agreement: for example, offer a buyout figure with the appraisal cost added as a separate line item to be paid at closing.
  • If the estate is open and you are not the personal representative, coordinate with the personal representative. They may already have authority to pay appraisal costs from estate funds.

Helpful Hints

  • Always get a written engagement with the appraiser that describes scope, fee, and intended use of the appraisal.
  • Before ordering an appraisal, see if other heirs will agree in writing to split the cost or reimburse the payer at closing.
  • If the estate is being probated, ask the personal representative whether the appraisal should be handled as an estate expense.
  • Use a written buyout agreement that specifically addresses payment of appraisal fees, closing costs, and credits so there is no ambiguity at closing.
  • If negotiations stall, consider mediation. It is often faster and cheaper than court and preserves relationships between heirs.
  • Keep a clear accounting: show how the appraisal affected the buyout price—either as an added cost, a credit, or part of the valuation supporting the buyout.
  • When in doubt, consult a probate or real estate attorney in Arkansas to review proposed agreements or to advise about asking the court to allocate costs.

Next steps you can take now

  1. Gather the appraisal invoice, the appraisal report, any written communications, and any prior agreements about costs.
  2. Propose a written settlement or buyout term that states how the appraisal fee will be treated at closing.
  3. If the co‑heir refuses to pay and you think the appraisal was necessary for estate administration, ask the personal representative to treat the fee as an estate expense or consider filing a petition in the probate court asking the court to allocate the cost.
  4. If matters are contentious or complex, consult a local Arkansas attorney experienced in probate and real property to evaluate options and (if needed) file appropriate motions or agreements.

Disclaimer: This article is for general informational purposes only and does not constitute legal advice. It summarizes common legal principles but does not apply your facts to the law. For advice about your particular situation in Arkansas, consult a licensed attorney.

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney.