Selling a Loved One's Home as an Executor or Power of Attorney: Where Do You Even Begin?
I know when this happened to me it was overwhelming - even as an experienced realtor, knowing where to start and where my responsibilities lay were confusing & on top of that it's a very emotional process! Family dynamics can complicate the matter - although mine was smooth sailing; often family members don't get along, have differing opinions on a property value, different styles of moving through the process, different needs for inheritance funds - so navigating is exhausting!
Whether you have been appointed Power of Attorney for an aging parent or are serving as the executor of an estate in Ontario, taking on the sale of a family home can feel overwhelming. Balancing family dynamics, legal requirements, and decades of accumulated belongings is no small task. Here is what you actually need to evaluate to navigate the process smoothly and protect the value of the home.
Author's note: this article is not meant to be legal advice, but written from a real-estate perspective.
1. Confirm your legal authority first
Before signing documents, hiring contractors, or listing the property, double-check that you have the proper legal paperwork in hand. For a Power of Attorney, ensure the document is active and grants real estate authority. A POA is only valid if the person is still living.
For an estate, you will most often need a probated will (or proof of probate application) before the property can officially close. Getting your lawyer involved early saves costly delays down the road. And there's a lesser-known "first dealings" caveat that could save your family thousands—you can call me and I'll walk you through it.
For example, a colleague of mine is working with a seller with this scenario: The house is her Mother's home; the mother has passed away. The mother named both herself and her sister as Estate trustees. But it was worded unclearly. The sister has also passed away -- without a will. So does the remaining daugher have autority to sell the home? That is something only a lawyer and/or the court can decide.
2. Tackle the contents before the real estate
Moving or settling an estate home usually means dealing with 30 to 50 years of accumulated possessions. Avoid trying to do it all yourself in a single weekend. Start by identifying sentimental items for family members, then bring in professional estate auctioneers, donation services, or clean-out teams for the rest. Clearing the clutter first gives you a clear picture of what repairs or staging might actually be needed.
3. Decide between 'necessary repairs', 'updating', and 'renovating'
It can be tempting to fully update an older home to max out the price, but over-renovating an estate property may not get you a 1:1 return. Here's where a local realtor can advise you on market conditions and where to get the best ROI. Many families simply don't have the money for a major reno, so make sure to get professional advice at the outset. If family members are collaborating, there may be a difference of opinion - so that's also a good reason to bring in a local realtor for advice at the beginning.
4. Vacant Toronto homes face unique risks
Check with the home insurance provider. Many insurers require a vacant home permit or mandate regular walkthroughs (often every 48 to 72 hours) to keep the policy valid. Ensure lawn care in the summer and snow removal in the winter are set up so the property stays safe, looks lived-in, and avoids municipal fines.
But what about the City of Toronto Vacant home tax? Did you know that as long as the property is in the probate process or being sold you can avoid Toronto's Vacant Home Tax? You need the property tax information to file your declaration on-line.
5. Price for the current market
Estate and POA sales carry a fiduciary duty to act in the best financial interest of the estate and beneficiaries. Often family may disagree on price. Asking for an objective, data-backed comparative market analysis helps set a fair market price that generates strong buyer interest without leaving money on the table.
You'll need to do this up front, as there will be probate tax on the estate's total holdings (1.5% at time of writing in Ontario). Real Estate may be the largest estate holding for the estate, and the estate tax implications may help you decide whether or not to renovate.
This can be tricky if the family has differing opinions on value. Or if you're dealing with a real estate agent that's not local. In that case there are a few options to choose from:
- pay for a formal appraisal
- get 3 letters of opinion from different realtors and choose the average
Just understand if the price you get from the house is more than you've stated in your probate application or if the market improves between applying for probate & paying the probate fees you'll need to save money from the estate to pay the additional probate fees.
6. Can I sell my deceased parent's house if there is no will in Ontario?
This happens more often than you may think. In this case, the closest next of kin must formally apply to the court for a Certificate of Appointment of Estate Trustee Without a Will. No bank, financial institution, or land registry office will let anyone sign documents, access accounts, or transfer real estate title until the court issues this certificate. This is what happened to my colleage in the first question.
Here are 5 frequently searched questions and answers that address the most common roadblocks families face during executor and POA real estate sales:
FAQ's for selling a property under POA or as an Estate in Ontario
1. Q: Do we have to wait until probate is fully approved before putting a family home on the market?
A: You can list, market, and even accept a conditional offer on an estate property while the probate application is pending. However, the sale cannot legally close until the court issues the Certificate of Appointment. Building this timeline into your closing date avoids wasting valuable time. Often there's a special clause we realtors insert into the offer to allow for a flexible closing date based on probate.
There is one exception to this, and that's if the property falls under "First Dealings" - call me at 416-562-5002 and I can explain more about first dealings. This saved a client $15,000 in probate tax this year!
2. Q: What is the difference between a Power of Attorney (POA) and an Executor when selling a home?
A: A Power of Attorney for property only holds authority while the owner is alive, and that authority ends the absolute moment they pass away. An executor (or estate trustee) only gains authority after death. They never overlap, so verifying which document is active is always step one.
3. Q: Will doing a major modern update on an older family home guarantee a higher selling price?
A: Not necessarily. Over-renovating an estate property often fails to deliver a 1:1 financial return. Most estate homes benefit far more from a thorough clean-out, fresh paint, and targeted repairs that fix safety defects rather than costly, full-scale modernizations. However in a soft market where prices are falling, updated homes sell faster than fixer-uppers.
4. Q: Are we covered if the family home is sitting empty while we sort through belongings and wait for a sale?
A: Standard home insurance policies typically become void or restrict coverage after 30 days of vacancy. You must notify your insurance provider immediately, as many policies require a vacant home permit or mandate physical walkthroughs every 48 to 72 hours to keep the policy active. In some cases a family member may move in short term to ensure the security and insurance remains active on the home.
5. Q: How do we sell a property if our parent or family member died without a will and their spouse is no longer living?
A: Dying without a will is called 'intestate' when there is no will, the closest next of kin must formally apply to the court for a Certificate of Appointment of Estate Trustee Without a Will. No financial institution, bank, or land registry office will permit anyone to sign transfer documents or access equity until the court officially issues this certificate.
6. Q: When are probate fees due?
A: Probate fees are due when you apply for the Certificate of Estate Trustee. The fees come out of the estate funds. If there are investments or bank accounts, the financial inistitution may release the funds to pay for the fees before the accounts are switched to estate accounts with limited access.
7. Q: How long does the probate process take in Ontario?
A: This varies by jurisdiction, in bigger cities it may take 6 months, in smaller municipalities shorter. Your lawyer can probably give you a good idea of how long it will take. Just know that you can't look up the progress on line!
Related articles:
Benefits of Home Staging a property
Before and After Home Glow-ups for modest homes
Clearing Decades of Stuff without having an nervous breakdown
Before you renovate, watch this first
Get in touch: 416-562-5002 [email protected]
