Selling or Transferring a House in an Ontario Estate

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Who owns the house after the death

When an estate includes a house, the first question is who owns it now. The answer starts with how the title was held. If the deceased owned the home as a joint tenant with someone who survives, the survivor usually becomes the owner by right of survivorship and the house never enters the estate. If the deceased owned it alone, or as a tenant in common with others, their interest becomes part of the estate.

Section 2(1) of the Estates Administration Act says that property owned by the deceased without a right of survivorship in someone else vests in the personal representative, the estate trustee, as trustee for the people entitled to it, subject to paying the deceased’s debts. Section 16 gives the estate trustee the power to sell or otherwise deal with that real property. So in law the estate trustee holds the house for the beneficiaries; the beneficiaries do not own it directly while the estate is being administered. This page sits under our main probate page, which explains the court side.

Selling or transferring the house, step by step

Secure the property. Change the locks if keys are unaccounted for, tell the insurer about the death, and keep the coverage in force. Ask whether an empty house changes the coverage.
Check the title. A search of the parcel register shows who is on title and whether the property was held jointly. Section 123 of the Land Titles Act lets a surviving joint tenant ask the land registrar to delete the deceased’s name, with the evidence the Director of Titles specifies.
Get the certificate before signing anything. Ontario’s guidance says that where the deceased’s real property must be sold, a Certificate of Appointment of Estate Trustee or a Small Estate Certificate should be obtained before anyone enters into an agreement of purchase and sale. Section 17(7) of the Estates Administration Act also says an executor cannot use the Act’s powers to sell for distribution, or to divide the estate, until probate is obtained, except with a judge’s approval. Our page on applying for the certificate covers the forms.
Value it at the date of death. The Estate Administration Tax uses the appraised value at the date of death, less any encumbrance on it such as a mortgage or lien, even if the house later sells for more or less.
Decide with the beneficiaries. Sell and divide the money, or transfer the house to one or more of them. The approvals needed depend on which (see the table below).
Register the estate trustee or the transfer. On the death of a sole registered owner, section 120 of the Land Titles Act lets the land registrar register the appropriate person in the deceased’s place on application. A sale or transfer is then registered from the estate trustee.
Pay the debts, file the tax returns, then distribute. The proceeds go into the estate account and are paid out on the timetable we explain in when an estate trustee can pay out the beneficiaries. The house’s date-of-death value also goes on the Estate Information Return, due within 180 calendar days after the certificate is received.

What the estate trustee can do with estate real property, and who must agree
What the estate trustee wants to do	Who must agree	Estates Administration Act
Sell to pay debts, or sell for debts and distribution together	No beneficiary’s concurrence is needed	s. 17(1)
Sell only to divide the money among beneficiaries	A majority of beneficiaries together holding at least half of the interests, with the Children’s Lawyer for minors and the Public Guardian and Trustee for an incapable person with no guardian or attorney for property; a judge can dispense with concurrence	s. 17(2)
Transfer the house itself to the beneficiaries, or divide it among them	The adult beneficiaries, plus written approval of the Children’s Lawyer or the Public Guardian and Trustee where a minor or incapable person is entitled	s. 17(3) and (6)
Lease from year to year	No approval needed while the property is vested in the estate trustee	s. 22(1)(a)
Lease for a longer term	Majority holding at least half of the interests, as for a sale for distribution	s. 22(1)(b)
Mortgage the property	Allowed for paying debts; the Children’s Lawyer or Public Guardian and Trustee must approve where they would have to approve a sale	s. 22(1)(c) and (2)

The three-year rule and cautions

Section 9(1) of the Estates Administration Act sets a clock that is easy to miss. Real property the estate trustee has not sold, conveyed or distributed within three years after the death vests automatically in the beneficiaries entitled under the will or the intestacy rules, whether or not probate was ever taken out. The estate trustee can stop that by registering a caution in the land registry office before the three years run out. A caution keeps the property in the estate trustee for three years from its registration, and section 9(6) allows it to be re-registered as often as the estate trustee considers necessary.

The rule matters in two directions. An estate trustee who needs more time to sell, perhaps because a beneficiary is a minor or the market is slow, should register a caution well before the third anniversary. Section 11 allows a late caution, but only with the written consent of the affected beneficiaries (or the Children’s Lawyer or Public Guardian and Trustee for those they represent), or a court order or certificate in place of consent. In the other direction, section 13 lets a beneficiary ask a judge to vacate a caution if vesting should not be delayed.

What changes the answer

Joint ownership

Property held in joint tenancy with right of survivorship passes to the survivor and is left out of the Estate Administration Tax calculation, as Ontario’s tax guidance confirms. Property held as tenants in common does not: the deceased’s share goes through the estate, and section 122 of the Land Titles Act allows the personal representative to be entered as owner with the surviving co-owners.

A matrimonial home

The Family Law Act adds two rules. If a married spouse dies owning a matrimonial home as a joint tenant with someone other than their spouse, section 26(1) treats the joint tenancy as severed immediately before death, so the deceased’s share goes into the estate rather than to the other joint tenant. Section 26(2) lets a surviving spouse who has no ownership interest but was living in the matrimonial home stay there, rent free, for 60 days after the death. A married spouse also has six months to elect under section 6, and no distribution can be made in that time without the spouse’s written consent or a court order.

Minors and incapable beneficiaries

Where a beneficiary is under 18, or is mentally incapable and has no guardian or attorney for property, the Children’s Lawyer or the Public Guardian and Trustee gives or withholds approval for them. Section 17(2) also lets them approve on behalf of beneficiaries whose whereabouts are unknown, if the sale is in the interest and to the advantage of the estate. Build time into the sale for that review.

Debts and the purchaser

Section 19 protects a buyer who purchases in good faith and for value from an estate trustee acting as the Act allows: the buyer takes the property free of the deceased’s debts (other than ones specifically charged on the property, such as a mortgage) and free of the beneficiaries’ claims. Where the house is instead transferred to a beneficiary within the three years, section 17(8)(a) keeps it liable for the deceased’s debts as if no transfer had been made. An estate trustee who transfers it knowing of a debt, or without due advertisement for creditors, can be answerable to a later buyer under section 17(8)(b). Section 125 of the Land Titles Act lets the land registrar remove the reference to the deceased’s unpaid debts once evidence is produced that the debts are paid and creditors were notified.

Real estate outside Ontario, and a property held in a company

Ontario’s Estate Administration Tax does not include real estate outside Ontario, which may need its own process where it is located. A property owned by the deceased’s corporation is not estate real property at all: the estate owns the shares, and the corporation keeps owning the property. We explain the planning side in estate planning for owners of an Ontario corporation.

Example

For example, imagine Ahmed died in Markham in April 2026, leaving his house in his name alone to his three adult children in equal shares. His daughter Leila is the estate trustee. There is a small mortgage, and the house is appraised at $1,200,000 at the date of death.

Leila applies for the certificate first and does not list the house until it arrives. For the Estate Administration Tax, she uses the appraised value less the mortgage balance. Her brother Omar would like to buy the house; her sister Sara would rather the house be listed publicly. Leila’s options follow the Act. If she sells to pay the estate’s debts and then divide the balance, no concurrence is needed under section 17(1). If the sale is only to divide the money, she needs a majority of the beneficiaries holding at least half of the interests: Leila and Sara together hold two thirds, which meets section 17(2). If Omar is to take the house itself, all three adult children have to concur under section 17(3), with Omar paying the others for their shares.

Leila gives notice to creditors, sells, pays the debts and keeps a reserve until the final tax return is assessed and the CRA’s clearance certificate arrives. This example is hypothetical and is not legal advice.

Common mistakes estate trustees make with the house

Signing a listing or an offer before the certificate. Ontario’s guidance says to get the certificate before anyone enters into an agreement of purchase and sale.
Letting a beneficiary move in informally. Occupation without a written arrangement can lead to disputes about rent, repairs and the eventual price.
Using the sale price for the tax. The Estate Administration Tax uses the appraised value at the date of death, and real estate commissions cannot be deducted.
Forgetting the three-year clock. Without a caution, unsold property vests in the beneficiaries at the third anniversary of the death.
Letting the insurance lapse. Tell the insurer about the death, and about any vacancy, straight away.
Distributing the proceeds on closing day. The sale money is estate money; it waits for the debts, any protected period and the clearance certificate.

What to do this week

Find the deed or order a title search, and note whether the deceased owned the property alone, jointly or as a tenant in common.
Call the insurer and confirm the coverage, including for any period the house will be empty.
Get a date-of-death appraisal and a mortgage statement as of the date of death.
Ask every beneficiary in writing whether they want the house sold or transferred, and record the answers.
Start the probate application, or the small estate certificate if the estate is valued at $150,000 or less.
Put the third anniversary of the death in your calendar, with a reminder six months ahead.
If a beneficiary is a minor or cannot manage their affairs, or the family disagrees, get advice before listing. A first consultation takes 30 minutes, by video or in person, and you can request one here.

Frequently asked questions

Can I sell the house before probate in Ontario?

Ontario’s guidance says the certificate should be obtained before anyone enters into an agreement of purchase and sale, and section 17(7) of the Estates Administration Act restricts an executor’s sale powers until probate, except with a judge’s approval. In practice, wait until the certificate is in hand before signing a listing or an agreement of purchase and sale.

Does a house held jointly with my spouse need probate?

Usually not. If it was held in joint tenancy, it passes to the survivor by right of survivorship and the survivor applies to have the deceased’s name removed from title. It is also left out of the Estate Administration Tax.

How much Estate Administration Tax does the house attract?

The house counts at its date-of-death value less encumbrances such as a mortgage. The tax is $15 for every $1,000 (or part) of the estate’s value above $50,000; our Estate Administration Tax guide works through examples.

Can one beneficiary block a sale?

Not on their own if the sale is to pay debts, or if a majority holding at least half of the interests approves a sale for distribution. A transfer of the house itself to one beneficiary normally needs every adult beneficiary to concur; section 17(6) allows the Children’s Lawyer or Public Guardian and Trustee to approve in limited cases.

Can the estate rent the house out while it is being sold?

Yes. Section 22 allows a lease from year to year while the property is vested in the estate trustee. A longer lease needs the same majority approval as a sale for distribution.

What if the house is not dealt with for years?

After three years, unsold real property vests in the beneficiaries automatically unless the estate trustee has registered a caution. A late caution needs the affected beneficiaries’ consent or a court order.

Who signs the transfer to the buyer?

The estate trustee, as the person in whom the property is vested. If there are co-trustees, plan for each of them to be available to sign.

Sources

This page is general information about Ontario law, not legal advice for your situation. It reflects the law as of November 9, 2026.

How does an estate trustee sell or transfer a house in Ontario?