Selling an Estate home can be challenging and can be overwhelming when you are the Estate Executor. An Estate Executor is named to carry out the wishes that you set out in your will. An Estate Executor’s duties are the following: arranging the funeral, securing and appraising the assets of the deceased, accounting to beneficiaries, distributing the assets, applying for Probate, if necessary, paying the debts and taxes of the deceased.
There is nothing simple in administering another person’s assets – dealing with companies, creditors, family members, banks, courts and mainly when it includes property.
I have dealt with many estate sales as a Realtor, and it usually is time-consuming for both the family and the Executor. Being trained as a Realtor, I received many questions about the process of selling an estate home. I cannot give legal advice, but I recommend talking to a legal expert such as a Real Estate or an Estate lawyer. However, I can provide you with the information and guide you through the process of getting the property ready for sale in Ontario.
When you seek legal advice, the lawyer asks the Executor to manage the estate affairs, ensure that all the assets are accurate, debts are paid out, and appraise the most significant investment, which is usually the property. The realtor or an appraiser is typically called in to do a home evaluation at fair market value. The property can be assessed a higher or lower value depending on the condition of the house. The home value is included in the total asset. The document is submitted to the court as an Estate Administration Tax (otherwise known as a probate tax or probate fee. The Probate is taxed at approximately 1.5% of the value of the estate.
Can I sell a property before Probate?
If the deceased owner owned a property in their sole name, Probate would generally be needed before being sold or transferred. If Probate is required, the property can be put on the market, and an offer can be accepted before the grant of the Probate has been obtained, but the sale won’t be able to complete without the Probate grant. I usually would not recommend this because it may take the courts anywhere between 2 weeks to 6 months or even longer.
If you inherit property and later sell it, you pay capital gains tax based on the value of the property (appraisal value) as the date of death. Once the capital gain tax has been assessed, there are no inheritance taxes in Ontario.

Working with the Right Professionals
Selling an estate home can be stressful, which requires commitment and knowledgeable professionals. It is finding the right professionals such as a lawyer who has experience with Real Estate and Estate knowledge. The solicitor with the appropriate expertise will ensure that you have a smooth transition through the whole selling process.

You should also strongly consider your choice of a Real Estate Broker/Agent that understands estate homes’ selling process and gives you advice along the way. If you are unsure, I always recommend interviewing these professionals to ensure that they are the right fit for you and knowledgeable. The right Real Estate Broker/Agent will work with you to prepare the property to ensure that you get the home’s highest value.
Achieving the highest/best value for the home requires planning and preparation such as decluttering, staging if needed, a marketing plan and a pricing strategy. Selling a family, friends, or a loved one’s home is a very emotional time and having the right person there to support you through this stressful time will make this process seamless.

 This post is intended for information purposes only. Each circumstance is different, and if you are interested in specific details for your situation, please contact your Mortgage Specialist or contact Steven B. Cheung who can direct you to a Reverse Mortgage Specialist.