What happens to a property when someone dies — and how to navigate it
Dealing with real estate in a deceased person's estate is a process that combines grief with significant legal and financial complexity. This guide helps executors, beneficiaries, and family members understand what is involved.
The executor named in the will has the legal authority and responsibility to manage and dispose of estate assets including real property. Before selling, the executor must obtain probate (a court-issued Certificate of Appointment of Estate Trustee) in most provinces for real estate transactions — confirm the requirement with an estate lawyer. Probate validates the will and authorizes the executor to transfer title. The process takes 3–6 months in Ontario, longer in contested estates. No real estate transaction can close without valid authority.
At death, there is a deemed disposition of the property at fair market value. If the property was the deceased's principal residence, the PRE applies and the capital gain is tax-exempt. If the property was a rental or investment property, capital gains tax applies on the gain from original purchase price to date-of-death fair market value — this is the deceased's tax liability, paid from the estate. Obtain a professional appraisal dated as close to the date of death as possible to establish the adjusted cost base for the estate.
The executor lists and sells the property as the seller — typically described as 'Estate of [Name], [Executor Name], Executor' on the listing agreement. The property is usually sold as-is — executors cannot warrant the condition or systems of a home they never lived in. Buyers of estate properties should inspect thoroughly. Estate sales can be emotionally complex if beneficiaries disagree on price, timing, or strategy. The executor has legal authority to make decisions — disagreements among beneficiaries are resolved through the estate, not the transaction.
If the deceased died without a will (intestate), a court must appoint an estate administrator before any property can be dealt with. This takes longer than probate for a valid will. The province's intestacy rules determine who inherits — not any verbal instructions or informal letters. This process can take 6–12+ months and is significantly more expensive in legal costs. The single most valuable estate planning step a person can take is having a current, properly signed will — ideally reviewed every 3–5 years.
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Read All ReviewsThese guides are written for Canadian buyers, sellers, renters, and landlords and are kept current for 2026. They are for informational purposes only — not legal, tax, or financial advice. Rules vary by province; confirm details with your lawyer, accountant, or licensed real estate professional before making decisions.