Confirm the legal authority first
Nothing can be signed without the right authority. A continuing power of attorney for property allows a sale while the owner is living. After death, the estate trustee named in the will signs, and most sales require a certificate of appointment, commonly called probate, before title can transfer.
- Power of attorney for property: valid while the owner is alive
- Estate trustee authority: after death, usually needs probate
- Jointly held property with right of survivorship may pass outside the estate
Probate takes time, and buyers need dates
Probate timelines in Ontario vary and can stretch for months. Listing before the certificate is issued is possible, but the closing date must account for it, and the listing should disclose that the sale is subject to estate approval.
Financing options while the estate settles
Estates frequently need money before the sale closes: property tax, insurance, carrying costs, or an equalization payment to a sibling. Short-term financing secured against the property, sometimes called an estate or inventory loan, can bridge that gap. It is more expensive than a conventional mortgage and should be planned with an exit date.
Deal with the contents before the market
Decide early what is being kept, sold, donated, or discarded, and agree in writing among siblings. Estate content services can clear a house in days. Most family conflict in these sales is about contents, not price.
Tax and the principal residence exemption
A principal residence is generally exempt from capital gains for the years it qualified, and an estate is deemed to dispose of the property at fair market value on the date of death. Gains after that date can be taxable to the estate. Get an accountant involved before the sale, not after.
Frequently asked questions
- Can we sell before probate is granted?
- You can list and even sign an agreement, but the closing generally has to wait for the certificate. Build the timeline into the offer.
- Can the estate borrow against the house?
- Yes. Short-term estate financing secured by the property is available and is often cheaper than a rushed, discounted sale.