Things for an executor to consider when selling a house from an estate

One of the largest tasks that an executor often has to take care of in an estate is selling the deceased's house. There are a lot of issues to consider before taking this step. Here are some of the things you should keep in mind:

1. Has the Grant of Probate been issued? If not, you will not be able to transfer the title to anyone. This doesn't mean you can't list the house before getting probate, but the deal has to be made subject to the Grant issuing within a reasonable time.

2. Does the Will direct you to grant an option to purchase to anyone? Are there any other instructions in the Will about disposing of the house?

3. Keep the house insured right up until the title transfers. The house is legally under your care while you're the executor so if it burns down before it's sold, you're on the hook. Let the insurer know that the house is vacant.

4. Get an appraisal - or two - before listing the property. This will head off any objections from beneficiaries that either you sold it too cheaply or it's taking too long to sell because you priced it too high.

5. Do a title search to check that the ownership of the house was owned by the deceased alone. Check the title for liens and mortgages that you might have to deal with.

6. Check the Will to see what it says about dealing with personal items in the house and in any outbuildings such as garages, shops and sheds. Give away items according to the Will. You will have to decide what to do about the rest of the furnishings and household items, whether that ends up being an estate auction, a garage sale or a donation of items to charity. Any money earned from selling items should be pooled with the estate.

7. You might have to spend some money on repairs, cleaning or renovations before the house can be sold. If there is estate money available, this is a legitimate estate expense as long as you keep it reasonable and you keep detailed records with receipts. If you end up spending your own money on this because there is no estate money available, you are entitled to be repaid before the beneficiaries split the sale proceeds.

8. If the house you're selling was the deceased's principal residence, there will be no capital gains tax arising from the sale. However, if the house is a cottage or other secondary home, there will be tax implications. Remember that taxes have to be paid before beneficiaries can receive their shares.

9. Deposit the proceeds from the sale of the house into your executor's bank account. Never put estate money in an account with your own personal funds.