Blog > How to Sell an Inherited Home in Markham: A Full Guide
How do I sell an inherited home in Markham?
The estate trustee (executor) sells the home, usually after obtaining a Certificate of Appointment through probate, which often takes several months in the Greater Toronto Area. For tax purposes, the person who passed away is treated as having sold the home at fair market value immediately before death. If it was their principal residence, that gain is usually sheltered on their final return, but the executor must still report it. Any change in value after death is generally taxed in the estate. Get a date-of-death valuation early, keep the home insured and maintained while it sits empty, and do not distribute the sale proceeds until the Canada Revenue Agency has issued a clearance certificate.
Start With the People, Then the Paperwork
An inherited home is rarely just a property. It is where a parent lived, where holidays happened, and often where siblings grew up. Decisions about it come at a time when families are grieving and may not agree.
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 alongside the family's estate lawyer and accountant on these sales. His role is to give the executor clear information on value, timing and preparation, so every beneficiary can see how decisions were made.
Step 1: Confirm Who Has Authority to Sell
If the home was in the deceased's name alone
The estate trustee named in the will has authority over the home. In practice, most buyers' lawyers and lenders need to see a Certificate of Appointment of Estate Trustee before closing. You can often prepare the home and even list it while probate is under way, but the closing date must allow enough time for the certificate to arrive. In limited cases, a sale can close without probate; ask the estate lawyer whether any exemption applies.
If the home was owned jointly
A home held as joint tenants usually passes directly to the surviving owner and is not part of the estate. If a parent added an adult child to title without payment, the law presumes the child may be holding the home in trust for the estate unless there is evidence the parent intended a gift. That question needs a lawyer before any sale.
If it passes to a spouse
A home left to a surviving spouse or common-law partner generally transfers at the deceased's original cost, deferring tax until the spouse later sells, unless the executor elects otherwise.
Step 2: Protect the Home While It Is Empty
- Call the insurer right away. Many home policies limit coverage once a home is vacant for a set period, commonly around 30 days. Ask what applies and whether a vacant home policy is needed.
- Keep the heat on and check the home regularly. A frozen pipe in an empty Markham home in January can do serious damage before anyone notices.
- Keep paying condo fees. If the home is a condo, unpaid common expenses can become a lien against the unit.
- Secure valuables and documents, forward the mail and keep a simple log of every visit and expense for the estate accounts.
Step 3: Get a Date-of-Death Valuation
Two filings depend on the home's value on the date of death:
- The final tax return. The deceased is treated as having disposed of the home at fair market value immediately before death.
- The Ontario Estate Information Return, due within 180 days after the Certificate of Appointment is issued. The province notes it may be necessary to have property formally evaluated, and penalties apply for false or incomplete returns.
A retrospective appraisal from a qualified appraiser, supported by comparable sales around the date of death, gives the executor a defensible number. A REALTOR® market analysis is useful for pricing the sale, but ask your accountant whether a formal appraisal is also needed.
Step 4: Understand the Tax Picture
| Item | How it generally works |
|---|---|
| Gain up to the date of death | Reported on the deceased's final return. If the home was their principal residence for every year, the exemption usually covers it, but the designation must still be reported. |
| Final return due date | 30 April of the following year for deaths from January to October; six months after death for deaths in November or December. |
| Change in value after death | Generally taxed in the estate on a T3 return. An ordinary estate usually cannot use the principal residence exemption for this growth. |
| If the home sells for less | A loss in the estate may, in some cases, be carried back to the final return if the home is sold within the first years of the estate. Recent changes extended the window for more recent deaths. Your accountant will confirm eligibility. |
| Ontario Estate Administration Tax | $0 on the first $50,000 of estate value, then $15 per $1,000 above that. |
The practical takeaway: the longer an inherited home sits, the more the post-death change in value matters. That is a tax reason, not only a market reason, to make a plan early.
Step 5: Decide Whether to Sell, Keep or Buy Out
- Sell and divide the proceeds. The simplest path when no one wants to live there.
- One beneficiary buys out the others. Use an independent valuation so the price is fair to everyone. Financing and legal work run on the same timeline as a regular purchase.
- Keep and rent. Possible, but a rental is not a principal residence, so future growth is taxable, and landlord rules in Ontario changed in September 2026.
A beneficiary who inherits and then moves in can generally only shelter the years they actually lived there. Everyone should get tax advice before choosing.
Step 6: Prepare and Price the Home
Estate homes often have dated finishes and years of deferred maintenance. The executor has to balance a better price against the cost, time and risk of repairs using estate money.
- Clear and clean first. Removing belongings and a deep clean usually return more than they cost.
- Fix what a buyer's inspector will flag, like safety items, leaks and failing mechanicals, if the estate has the funds and the time.
- Consider selling as-is when repairs would be large or beneficiaries cannot agree. Selling a house as-is in Markham explains the trade-offs.
- Disclose what you know. Executors who never lived in the home often cannot complete a detailed property questionnaire. Your lawyer will advise on the wording in the agreement.
The full list of selling costs is in what it costs to sell a house in Markham, and the timing question is covered in the best time to sell a house in Markham.
Step 7: Close, Then Wait for Clearance Before Distributing
After closing, the sale proceeds go to the estate account. Before paying out the full amount to beneficiaries, the executor can apply to the Canada Revenue Agency for a clearance certificate, confirming all taxes owing by the deceased and the estate are paid. An executor who distributes without one can be personally liable for unpaid tax, up to the value distributed. The application is made after the returns are assessed, and CRA's service standard is up to 120 days. Many executors hold back a reserve and distribute the rest earlier on legal advice.
If the estate is one part of a larger family change, selling a Markham home during a life transition covers the related decisions, and the complete Markham selling guide walks through the sale itself.
Questions about your own property or timeline? Call Michael John Lau, REALTOR®, at (416) 700-0286 for a direct answer on your street and your situation.
Next Steps
- Estate sale support — how Michael helps executors and families.
- Request a home evaluation — a current market view to share with the estate lawyer and accountant.
- Book a private conversation — a no-pressure discussion of your family's situation.
Frequently Asked Questions
Do I need probate to sell an inherited house in Ontario?
Usually, if the home was in the deceased's name alone. Most buyers' lawyers and lenders need a Certificate of Appointment of Estate Trustee before closing. The estate lawyer can confirm whether any exemption applies.
Do I pay capital gains tax on an inherited home in Canada?
The deceased is treated as selling at fair market value just before death, and the principal residence exemption usually shelters that gain if it was their home. Any increase in value after death is generally taxable in the estate.
How much is Ontario's Estate Administration Tax?
Nothing on the first $50,000 of estate value, then $15 per $1,000 above that. A home held in joint tenancy that passes to the survivor is usually not included.
Can I list an inherited home before probate is granted?
Often yes, if the closing date allows time for the Certificate of Appointment to be issued. Coordinate the listing timeline with the estate lawyer.
What is a CRA clearance certificate?
A certificate confirming that all taxes owed by the deceased and the estate have been paid. Executors who distribute without one can be personally liable for unpaid tax, up to the value distributed.
Should an estate sell a Markham home as-is?
Sometimes. Selling as-is saves time and estate money when repairs are large or beneficiaries disagree, but it can reduce the price. A clean, clear home usually sells better even when no renovations are done.
Handling an estate home?
Michael John Lau works alongside estate lawyers and accountants to give executors clear information and a plan every beneficiary can understand.
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. This article summarizes general Canada Revenue Agency and Ontario Ministry of Finance guidance available in September 2026. Estate, tax and trust rules depend on the specific will, ownership and family circumstances. Michael John Lau is not a lawyer or an accountant, and this article is not legal or tax advice; executors should obtain advice from an estate lawyer and a tax professional before acting.