Title Problems When Selling a Deceased Person's Home in Ontario

A house that belonged to someone who has died does not sell like an ordinary listing. Someone has to have legal authority to sign, the title has to be clear enough for the buyer's lawyer, and anything registered against the property has to be dealt with on closing.

This article walks through the most common title problems an estate trustee or buyer meets in Ontario: missing authority, spousal rights, mortgages and liens, and closing costs. Every estate is different, so use it to ask better questions, not to replace advice on your own file.

Who has authority to sell

On death, a person's real and personal property passes to and vests in the estate trustee, who holds it as trustee for the people entitled to it. A buyer's lawyer will want proof that the person signing really is that trustee.

Ontario guidance says a Certificate of Appointment of Estate Trustee from the Superior Court of Justice is normally required where the deceased owned real property. If the property must be sold, the certificate should be obtained before anyone enters into an agreement of purchase and sale. Signing first and applying later is a common cause of delayed or failed closings.

There are narrow exceptions. For Land Titles Conversion Qualified properties, a transmission application generally does not need a certificate when it is 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 a certificate is not applied for. Whether that route is available depends on the property, and buyers' lawyers and title insurers set their own requirements, so confirm it early.

Small estates and old estates

An estate valued at $150,000 or less may apply for a Small Estate Certificate. That certificate gives authority only over the assets listed in it, and if the total goes above $150,000 a Certificate of Appointment of Estate Trustee is needed. If a house is in the picture, check the value against that limit before relying on this route.

Delay can also create a title issue. Real property the estate trustee has not dealt with within three years after death vests in the people beneficially entitled to it, unless a caution has been registered. A trustee who has been slow should get advice before listing.

Spousal rights and joint owners

If a married spouse dies owning a share of the matrimonial home as a joint tenant with someone other than their spouse, the joint tenancy is deemed severed immediately before death, and the deceased's share goes into the estate instead of passing to the surviving joint owner. A survivorship application in that situation must include a Family Law Act statement, and under the land registry bulletin that statement can be made and signed only by a solicitor. This rule is for married spouses and should not be assumed to apply to common-law partners.

A surviving married spouse who has no ownership interest but lives in the matrimonial home may stay in it against the estate, rent-free, for 60 days after the death. That can affect the possession date you can promise a buyer. A surviving spouse who must choose between the will (or intestacy) and an equalization entitlement files the election with the Estate Registrar for Ontario within six months after the death.

An estate trustee can generally sell estate real property without the beneficiaries agreeing. The exception is a sale made only to distribute the estate. That needs approval of a majority of the beneficiaries, plus the Children's Lawyer or the Public Guardian and Trustee where minors or persons under disability are involved, and without it the sale is not valid.

Mortgages, condo liens and creditors

A deceased's house is available to pay estate debts. A mortgage lender keeps its security against the property, and ranks in the distribution of estate assets only for any unsecured part of its claim, unless the trustee elects to take over the security. In practice the mortgage is normally paid out from the sale proceeds on closing. Where a beneficiary was to receive mortgaged property, the beneficiary takes it primarily liable for the mortgage debt unless the deceased showed a contrary intention.

For a condominium, the estate as owner remains responsible for common expenses while the unit is in the estate. If fees go unpaid, the corporation has a lien against the unit. The lien expires three months after the default unless the corporation registers a certificate of lien within that time. A condo lien has priority over registered and unregistered encumbrances, subject to listed exceptions, so a buyer's lawyer will want it cleared. A status certificate must be provided within 10 days after the request and fee are received.

A good-faith buyer of estate real property takes it free of claims by the deceased's creditors, except claims the buyer knew about at the time of purchase. That protects the buyer, not the trustee, who must still deal with creditors properly.

Closing costs and next steps

A transfer from the estate trustee to a beneficiary who receives the property in satisfaction of their share is not taxed for land transfer tax, and consideration is shown as nil. If a beneficiary pays to buy out other heirs, or takes over a mortgage, tax may be payable. Registering an electronic document such as a transmission or transfer costs $86.42 from November 2, 2026.

• Confirm who has authority to sign and whether a certificate is needed before listing.
• Ask whether the deceased was married and whether the home was a matrimonial home.
• Order a title search and look for mortgages, liens and other registrations.
• Request a status certificate if the home is a condominium.
• Check the beneficiaries' positions and any minors before agreeing to a sale only for distribution.
• Speak with a lawyer before signing any agreement of purchase and sale.

Frequently asked questions