How to Sell an Estate Property in Toronto: What You Need to Know About Probate
If you’ve recently lost a loved one and are now faced with the responsibility of selling their home, you’re not alone, and you’re probably wondering where to even begin. One of the first things that often comes up is probate. It’s a word that sounds heavy, and for many families in Toronto, it can feel like a roadblock. But it doesn’t have to be.
In this blog post, I’m walking you through the basics of selling an estate property in Toronto, including how probate works, when you might be able to skip it, what to expect with taxes and legal steps, and what makes an estate sale a little different from a regular listing.
What is probate in Ontario?
When someone passes away and leaves behind real estate, that property becomes part of their estate. Before that property can usually be sold, a legal process needs to happen… that’s probate.
Probate is the official court procedure where a will is validated and the executor is granted legal authority to manage the estate. In Ontario, this is called applying for a Certificate of Appointment of Estate Trustee. Once that certificate is issued, the executor can move forward with decisions like selling the home.
Do all properties need probate before they can be sold?
Not necessarily. There’s something called the First Dealings Exemption that might apply. This exemption can come into play if the property’s title has never changed hands since it was first converted into Ontario’s electronic land registration system. In that case, and if the original owner is still listed, you might be able to sell or transfer the property without going through full probate.
This can save both time and legal costs, but it’s not a guarantee. A real estate lawyer will need to review the title and confirm whether the exemption applies in your situation.
How much are probate fees in Ontario?
In Ontario, probate fees are officially known as the Estate Administration Tax. They’re calculated based on the total value of the estate, and yes, that includes the market value of the home.
Right now, the tax is approximately $15 for every $1,000 of estate value above the first $50,000. So if you’re dealing with a property worth, say, $900,000, the probate fees can add up. Keep this in mind as part of your overall estate planning or selling strategy.
How long does probate take in Toronto?
It varies. If everything is straightforward and all documents are submitted correctly, probate might take a few weeks. But in more complex situations, like if there’s no will, if beneficiaries disagree, or if paperwork is delayed, it can take several months.
While you can list the property for sale before probate is finalized, the closing date will usually need to be conditional on probate being granted. That’s something buyers and their agents will often include in the offer.
What’s different about selling an estate property?
Selling a home that’s part of an estate isn’t exactly like a regular listing. There are a few key things to keep in mind:
1. Disclosure:
The listing needs to disclose that it’s an estate sale. This lets buyers know the seller is the estate and not someone who lived in the home personally.
2. Property condition:
Many estate homes are sold as-is. That’s because the executor or beneficiaries often haven’t lived in the home and can’t make any warranties about the condition. Buyers should always do their own inspections, and the price often reflects the property being sold without guarantees.
3. Timeline considerations:
Like I mentioned earlier, the property can be listed before probate is complete, but it can’t be officially sold until the court grants that certificate. This is where a conditional clause based on probate comes in.
4. Multiple heirs:
If more than one person inherits the property, everyone needs to be in agreement before the home can be sold. This can be one of the trickiest parts. Clear communication and legal support are key.
Final thoughts
Selling a loved one’s home is deeply emotional. Add in legal steps and estate planning, and it can get complicated quickly. But with the right guidance and a great team behind you, the process can be a lot smoother than you think.
If you have any questions about estate sales, probate, or how to prepare a property for market in Toronto, we’re always here to help.
You Have Questions, We Have Answers.
Whether you’re buying or selling a home, we’re happy to help! Click the button below to get in touch.
