What happens when siblings inherit an Ontario home and one wants to sell but another doesn't?
When two or more beneficiaries inherit a property together — typically as tenants in common through an estate — each becomes a co-owner with equal legal rights over the property. If the siblings cannot agree on what to do with the home, the law provides a resolution mechanism, but it is not always a quick one.
Any co-owner who wants to sell can apply to the Superior Court of Justice under Ontario's Partition Act for a partition or sale. If physical division of the property is not practical (which is usually the case for a single-family home), the court will typically order the property sold on the open market and the proceeds divided among the co-owners in proportion to their shares. A sibling who wants to keep the home can bid at that sale like any other buyer — they are not given preference by the court.
The estate trustee (executor) named in the will may also have authority under the will to sell the property to wind up the estate, depending on how the will is drafted. If the beneficiaries are fighting over this, the trustee should seek court direction.
The most efficient path is for the siblings to negotiate a buyout — the sibling who wants to keep the home buys out the other(s) at an agreed value. A real estate appraiser can help establish fair market value, and a lawyer can prepare the transfer documents.
Key takeaways
- Co-inheritors of a property are tenants in common with equal rights.
- Any co-owner can apply under the Partition Act for a court-ordered sale.
- The executor may have authority under the will to sell without co-beneficiary consent.
- A negotiated buyout at fair market value is typically the fastest and cheapest resolution.