Inheriting a house often comes at one of the hardest times in life. On top of grief, there's paperwork, a property to look after, and sometimes several family members with different ideas about what to do. This guide walks through the main steps of selling an inherited house, in plain language.
This is general information, not legal or tax advice. An estate lawyer and an accountant can advise on your specific situation.
Step 1: Figure out who has the authority to sell
The person named in the will as estate trustee (often called the executor) is generally the one who can deal with the house. If there's no will, someone has to apply to the court to be appointed.
Whether the house goes through the estate also depends on how it was owned. If it was held in joint tenancy with a surviving spouse or another person, it usually passes directly to the surviving owner. If it was in the deceased person's name alone, it normally becomes part of the estate.
Step 2: Probate and the Estate Administration Tax
In many cases, a buyer's lawyer and the land registry will require a Certificate of Appointment of Estate Trustee, commonly called probate, before the house can be sold.
The province charges an Estate Administration Tax when you apply for probate:
- The first $50,000 of the estate's value is exempt
- Above that, the tax is $15 for every $1,000 (about 1.5%)
The tax is generally paid when the application is filed, and the estate trustee must file an Estate Information Return with the Ministry of Finance within 90 days of the certificate being issued. Smaller estates may qualify for a simplified small estate certificate. Because rules and forms change, confirm the current requirements with your lawyer or the province before filing.
Probate can take several months depending on the court's workload. You can usually still prepare the house for sale and talk to buyers during this time, but the sale generally can't close until the trustee has authority.
Step 3: Look after the house in the meantime
An empty house still costs money and carries risks. While the estate is being settled:
- Tell the insurer. Many home insurance policies have rules for vacant homes, and coverage can be affected if no one is living there.
- Keep paying the bills. Property tax, utilities and any mortgage still need to be paid, usually from the estate.
- Protect the house in winter. Keep the heat on and check regularly for frozen pipes and leaks.
- In Toronto, watch the Vacant Home Tax. Toronto requires owners to declare occupancy each year. There's an exemption that can apply after an owner's death, but a declaration still needs to be made.
Step 4: Agree on a plan with the family
Disagreements among beneficiaries are one of the most common reasons estate sales stall. Common questions include:
- Does anyone want to keep or buy out the house?
- Should the house be repaired before selling?
- How quickly does everyone want the money?
Getting a clear sense of what the house is worth in its current condition helps keep the conversation grounded in facts.
Step 5: Decide how to sell
Many inherited homes, especially ones a parent lived in for decades, come with dated kitchens, older wiring or plumbing, and a lifetime of belongings. You can:
- Clear, repair and list the house. This can bring a higher price, but it takes time, money and a lot of coordination, often by family members who live far away.
- Sell the house as-is. You skip the renovations and sell the home in its current condition.
- Sell privately, off-market. No showings, no strangers walking through a parent's home, and a closing date that fits the estate timeline.
A note on taxes
When someone dies, the Canada Revenue Agency generally treats their property as if it was sold at fair market value on the date of death. A house that was the deceased person's principal residence is often sheltered by the principal residence exemption. A rental or second property may trigger capital gains tax on the final return. An accountant can work through this with the estate trustee.
How Humberside Capital can help
We know estate sales are about more than the house. Humberside Capital buys houses directly from estates, in any condition and with belongings left behind if needed, and we work around probate timelines. If it would help to understand your options, you can request a free, no-obligation same-day cash offer or book a time to talk.
This article is general information for homeowners and is not legal, tax or financial advice. Rules and programs change, so confirm details with the relevant government source or a licensed professional before acting. Any figures Humberside Capital discusses are purchase offers, not formal appraisals.