Selling a house after someone dies in Ontario normally requires the estate trustee to obtain a Certificate of Appointment of Estate Trustee from the Superior Court of Justice before the property can be transferred or sold. That court process, commonly called probate, is what gives the trustee the legal authority to sign on behalf of the estate.
There is a significant exception. If the home was held in joint tenancy with a surviving spouse or another co-owner, it passes automatically by right of survivorship and no certificate is needed for that transfer. A property held in the deceased's name alone, or held as a tenancy in common, does not pass that way. It stays in the estate until the court appoints someone to deal with it.
What probate costs the estate
Applying for the certificate triggers Ontario's Estate Administration Tax. Estates valued at $50,000 or less pay nothing. Above that threshold, the tax is $15 for every $1,000 of estate value, with the value rounded up to the nearest thousand. The home counts at its appraised value on the date of death, less any mortgage or lien registered against it. Funeral expenses, legal fees and real estate commission cannot be deducted from that figure. Within 180 calendar days of the certificate being issued, the trustee must also file an Estate Information Return with the Ministry of Finance.
Why the date-of-death value matters twice
A date-of-death appraisal does two jobs. It fixes the number the tax is calculated on, and it sets the cost base the estate carries forward. The Canada Revenue Agency treats the deceased as having sold the home at fair market value immediately before death. Where the property was their principal residence for every year they owned it, that deemed gain is generally sheltered by the principal residence exemption, claimed on the final personal tax return. Growth in value after the date of death is a separate question, and the estate usually cannot shelter it the same way.
Getting to a sale
Court timelines vary by location, so trustees often prepare the property, choose an agent and go to market while the application is still in progress. Buyers and their lawyers will want to see the certificate before closing. A real estate lawyer registers the transmission application that moves title into the estate's name, and the sale proceeds after that like any other Ontario transaction.
Related reading: Joint Tenancy vs Tenancy in Common in Ontario, Do You Pay Capital Gains Tax Selling Your Ontario Home?, and What Documents Do You Need to Sell a House in Ontario?
