Can I Sell a House Before the Estate Has a Certificate of Appointment in Ontario?
Usually you should not sign an agreement of purchase and sale until you have the certificate. Ontario guidance says probate is normally required where the deceased owned real property, and that where the property must be sold, the certificate should be obtained before anyone enters into an agreement of purchase and sale. The estate trustee holds the house for the people entitled to it, and can generally sell without beneficiaries agreeing.
Exceptions exist. A sale made only for distribution needs approval of a majority of the beneficiaries, and where minors or persons under disability are involved, the Children's Lawyer or Public Guardian and Trustee must approve; without approval the sale is not valid. For some Land Titles Conversion Qualified properties, a certificate is generally not needed for the first dealing since the Ministry converted the property from Registry to Land Titles, but a covenant to indemnify the Land Titles Assurance Fund must be provided whenever no certificate is applied for. A small estate of $150,000 or less may use a Small Estate Certificate.
Buyers' lawyers and title insurers set their own requirements, so what they will accept can vary with the property and the facts. A lawyer can tell you what your sale needs.
Key takeaways
- Ontario guidance says the certificate should be obtained before anyone enters into an agreement of purchase and sale.
- An estate trustee can generally sell estate real property without the beneficiaries agreeing, except where the sale is only for distribution.
- A sale made only for distribution needs majority approval of the beneficiaries, and without that approval the sale is not valid.
- For some Land Titles Conversion Qualified properties, a certificate is generally not needed for the first dealing since conversion, but a covenant to indemnify the Land Titles Assurance Fund must be provided whenever no certificate is applied for.