What NOT to Do When You Inherit a Property in Canada
Inheriting a property might feel like a blessing at first—but it can quickly become stressful, expensive, and emotionally draining if you don’t plan carefully. Whether it’s a family home, a cottage, or an investment property, the choices you make in the first few months can save (or cost) you thousands of dollars.
Before you make any big decisions, here are 5 common mistakes to avoid when you inherit a property in Canada.
1. Don’t Assume You Can Sell Immediately
Many heirs think they can list the property right away—but if the estate hasn’t gone through probate, you legally can’t transfer ownership. Probate is the court process to validate the will and authorize the executor to act.
In Ontario, probate can take 8–12 weeks or longer.
In BC or Alberta, timelines vary, but expect similar delays.
Tip: Start the probate process ASAP, and consult an estate lawyer to avoid delays.
2. Don’t Forget About Taxes
When you inherit a property in Canada, there are tax implications you can’t ignore:
Capital Gains Tax: If the property isn’t your primary residence, selling it could trigger capital gains tax on any appreciation.
Property Taxes: You’re responsible for ongoing property taxes while you own it.
Tip: Speak to an accountant before selling or renting the property.
3. Don’t Leave the Property Vacant for Too Long
Empty houses are magnets for break-ins, vandalism, and water damage. Plus, some insurance companies will void coverage if the home is vacant for over 30 days without special permission.
Keep utilities on to prevent damage (frozen pipes in winter are a big risk in Canada).
Ask a neighbour or property manager to check in regularly.
Tip: If you don’t want to manage it, consider a quick sale to avoid holding costs.
4. Don’t Start Major Renovations Without a Plan
Many heirs think, “If I renovate, I’ll sell for way more.” Sometimes that works—but often, it backfires:
Renovations cost money and time you may not have.
Unexpected repairs can drain the estate’s cash.
The market might not support the price you need.
Tip: Get a market evaluation and estimate repair costs before swinging a hammer. Sometimes selling “as-is” is faster and more profitable.
5. Don’t Ignore Family Disagreements
Inheritance can bring out the best—or worst—in families. Disputes over the property can drag on for months, costing thousands in legal fees.
Tip: Put everything in writing, get legal advice, and if needed, involve a neutral third party.
Need to sell an inherited property without the headaches?
We help homeowners sell their properties as-is, with no fees, no commissions, and no costly repairs. You pick the closing date, and we make the process simple and stress-free.
📞 647-461-4718 or Fill the form below
