Blog > The Estate Sale Playbook: Selling an Inherited Markham Family Home Without Family Friction
The Estate Sale Playbook: Selling an Inherited Markham Family Home Without Family Friction
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How do executors sell an inherited family home in Markham
An executor (estate trustee) can list a parent’s Markham home, but in most cases the sale cannot close until the court issues a Certificate of Appointment of Estate Trustee, commonly called probate. Ontario charges Estate Administration Tax of $15 per $1,000 of estate value above $50,000, so a $1.5 million estate pays about $21,750. The Income Tax Act treats the deceased as having sold their property at fair market value on the date of death, which makes a dated valuation important. Family friction is easiest to avoid with a written plan, an independent valuation, and regular updates to every beneficiary.
The Executor’s Role
An estate trustee has a legal duty to act in the best interests of all beneficiaries: to protect the home, get a fair price, keep records, pay debts and taxes, and distribute what remains according to the will. That responsibility often lands on an adult child who is also grieving and coordinating with siblings.
Michael John Lau, a REALTOR® with the Kaizen Real Estate Team, one of the most active real estate teams in Markham and York Region, works with executors who want a clear process: a valuation everyone can see, a timeline everyone agrees on, and one point of contact for the sale.
Estate Administration Tax figures are from the Government of Ontario for applications on or after January 1, 2020.
How Estate Administration Tax Is Calculated
Ontario’s Estate Administration Tax (EAT) applies when an estate certificate is applied for and issued. There is no tax on the first $50,000. Above that, the tax is $15 for every $1,000, or part of $1,000, of the estate’s value.
| Estate value | Taxable portion | Estate Administration Tax |
|---|---|---|
| $240,000 | $190,000 | $2,850 |
| $1,000,000 | $950,000 | $14,250 |
| $1,500,000 | $1,450,000 | $21,750 |
Ontario real estate is included at its value on the date of death, minus any mortgage registered against it. Other debts, such as credit cards or a line of credit not secured on the home, cannot be deducted. Jointly owned assets that pass directly to a surviving owner, and registered plans or insurance with a named beneficiary, are generally excluded. The estate trustee must also file an Estate Information Return within 180 calendar days after the certificate is issued.
Selling Before or After Probate
An estate trustee can prepare the home and even list it before probate is granted, but the buyer’s lawyer will usually require the Certificate of Appointment before the transfer can be registered. Processing times at the Superior Court of Justice vary and can take several months.
| Approach | Pros | Cons |
|---|---|---|
| Wait for the certificate, then list | Closing date is easy to commit to | Months of carrying costs on a vacant home |
| List now, with a long closing | Sells during a good season | Risk if the certificate takes longer than expected |
| Sell conditional on the certificate being issued | Buyer is secured early | Some buyers avoid uncertain closing dates |
Your estate lawyer should confirm the right approach and the wording of any condition.
Settling a parent’s estate in Markham? Call Michael John Lau, REALTOR®, at (416) 700-0286 for a calm, step-by-step plan for the home.
Taxes on the Home: Deemed Disposition and the Principal Residence Exemption
Under the Income Tax Act, a person is deemed to have sold their capital property at fair market value immediately before death. If the Markham home was the deceased’s principal residence for every year it was owned, the gain up to that date is usually exempt, and the executor designates it on the final tax return.
Any increase in value between the date of death and the sale is generally taxed in the estate. A home that was a rental or a second property can create a significant capital gain on the final return. For these reasons, the executor should obtain a dated valuation as of the date of death, often a formal appraisal, and keep it with the estate records.
Before distributing all of the money, many executors request a clearance certificate from the CRA, which confirms that the deceased’s and the estate’s taxes have been paid.
Clearing Out and Preparing the Home
- Secure the home: change locks if needed, keep heat on in winter, and check it regularly.
- Call the insurer: many home policies have rules for vacant homes, so confirm coverage in writing.
- Inventory belongings with photos before anything is removed, and share the list with all beneficiaries.
- Agree on keepsakes through a simple, fair process, such as taking turns choosing.
- Hire help for donation, sale and disposal of the rest. Keep receipts as estate expenses.
- Decide on repairs: cleaning, paint and small fixes often help. Larger renovations add time and risk.
Keeping the Family on the Same Page
- Share an independent valuation so the list price is based on evidence, not opinion.
- Agree on the plan in writing: timeline, repairs, list price and how offers will be reviewed.
- Send regular updates to every beneficiary at the same time.
- Handle sibling purchase interest fairly: if a beneficiary wants to buy the home, get independent valuation and legal advice for everyone involved.
- Keep careful records of every expense and decision. Transparency prevents most disputes.
The Executor’s Tax and Filing Checklist
| Item | Timing |
|---|---|
| Final personal tax return for the deceased | April 30 of the following year, or six months after death if death was in November or December |
| Estate Information Return (Ontario) | Within 180 days after the certificate is issued |
| Estate trust (T3) returns, if the estate earns income | Ask your accountant |
| CRA clearance certificate | Before the final distribution |
Ultimately, the decisions belong to the estate trustee and the family. The goal is to make sure everyone has the information to move forward with confidence.
Next Steps
- Request a free home evaluation: a starting point for the estate’s discussions.
- Estate and special-situation sales: support for executors and complex sales.
- Selling as-is in Markham: when an estate home should sell without repairs.
Frequently Asked Questions
Can an executor sell a house before probate in Ontario?
An executor can prepare and list the home, but the sale usually cannot close until the Certificate of Appointment of Estate Trustee is issued. Ask your estate lawyer about timing.
How much is Estate Administration Tax in Ontario?
There is no tax on the first $50,000 of estate value. Above that, it is $15 per $1,000. A $1.5 million estate pays about $21,750.
Is an inherited house taxed in Ontario?
The deceased is deemed to have sold the home at fair market value at death. If it was their principal residence, the gain is usually exempt. Growth after death is generally taxed in the estate.
Do I need an appraisal for an estate home?
A dated valuation as of the date of death is important for Estate Administration Tax and income tax. Many executors obtain a formal appraisal for the records.
When is the Estate Information Return due?
Within 180 calendar days after the estate certificate is issued, even if the estate’s value is zero.
How can executors avoid conflict with siblings?
Share an independent valuation, agree on a written plan, update every beneficiary at the same time, and keep clear records of all expenses and decisions.
Work With Michael John Lau in Markham
Michael John Lau helps estate trustees sell family homes in Markham with care and clear communication. That includes a valuation the whole family can see, help coordinating clear-out and preparation, and regular updates to everyone involved. The goal is a fair result and a process the family can feel good about.
📞 Contact Michael John Lau, REALTOR®
🌐 www.callmikelau.com
Selling a family home as executor?
Michael John Lau provides a clear plan, a fair valuation and steady communication from listing to closing.
Michael John Lau, REALTOR® · Markham, Ontario · (416) 700-0286
Disclaimer. Michael John Lau is a licensed REALTOR® serving buyers and sellers in Markham, Ontario and the Greater Toronto Area. Estate Administration Tax information is from the Government of Ontario for applications on or after January 1, 2020. Income tax information reflects federal rules as of October 7, 2026. Examples are for illustration only. Michael John Lau is not a lawyer, accountant, tax advisor or mortgage professional. This article is general information, not legal, tax or financial advice. Speak with a qualified professional about your own situation.