What happens if the seller dies before closing on an Ontario home?
The answer depends on the signed Agreement of Purchase and Sale and on the seller's estate, so a buyer in this position should speak with a lawyer quickly. Generally, a transfer of title must be signed for completeness by two different lawyers, one acting for the transferor and one for the transferee.
Only a lawyer may sign for completeness of a document that requires compliance with law statements, which most transfers of title contain; non-lawyers may sign these documents for release only. Some transfers, such as transfers within a family or between related parties, may be completed by one lawyer acting for both sides under the Law Society's professional standards.
If closing stalls and a dispute follows, starting a lawsuit that puts an interest in land in question is not notice to outsiders until the court issues a certificate of pending litigation and it is registered on title. A court that can order specific performance may also award damages in addition to, or instead of, specific performance. Who has authority to act for the estate is a question to confirm with a lawyer.
Key takeaways
- Whether the deal binds the estate depends on the signed agreement and the facts, so a lawyer should confirm your position.
- A transfer of title must generally be signed for completeness by two different lawyers, one for each side.
- One lawyer may act for both sides in some transfers, such as those within a family or between related parties.
- A certificate of pending litigation registered on title is how a buyer who sues over land gives notice to outsiders.