How do I sell inherited property in Ontario?

The estate trustee, not the beneficiary, has authority to sell estate property. A deceased person's property vests in the estate trustee, who holds it as trustee for the people entitled, subject to the deceased's debts. Whether a certificate of appointment is needed first depends on the property and the buyer, so confirm it with a lawyer.

A sale of real property made only for distribution is not valid against a beneficiary who has not agreed, unless beneficiaries holding the majority interest or the court approved it. Real property not disposed of within three years of death vests in the beneficiaries without any conveyance, unless a caution is registered.

At death, the deceased is treated as having sold their capital property just before death at fair market value, and any gain or loss is reported on the final return. Transfers to a surviving spouse or common-law partner who lived in Canada may not produce a gain, and part or all of the gain on a principal residence may be exempt. When you later sell, you report the sale on your own T1 return, with the gain measured from the fair market value reported on the final return.