Situation · Executors
Selling a commercial property in an estate: the executor’s timeline
When someone dies, Canada Revenue Agency (CRA) treats their capital property as sold at fair market value just before death. That’s a deemed disposition, and any gain goes on the final return, due April 30 of the next year for deaths from January to October. In BC, probate often comes before a sale. Your estate lawyer can confirm the steps for your estate.
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Plain-English definitions with BC sources, from the encyclopedia:
General information only. This page is not legal, tax, accounting or financial advice, and it isn’t an opinion on your situation. Laws, rates and figures change, and examples are illustrative. Get advice from a lawyer, accountant or other qualified professional before you act. Reading this page doesn’t create an agency or client relationship. Cam Appleton is a Commercial Real Estate Agent licensed by the BC Financial Services Authority (BCFSA RE611549) with Coldwell Banker Prestige Realty. Terms and disclaimer.
Two clocks
Executors have two clocks: the tax clock and the court clock. It often helps to line them up early. Executors may be able to get a value and prepare while probate is pending, with the estate lawyer’s guidance.
The timeline
| Step | Who leads | Notes |
|---|---|---|
| Death certificate, will, insurance | Executor | Tell the insurer if the building may sit vacant |
| Date-of-death value | Executor, appraiser or agent | Needed for the deemed disposition |
| Leases and rent | Executor or manager | Leases usually carry on, ask the lawyer about rent |
| Probate application | Executor, often with a lawyer | Notice, then wait at least 21 days before filing |
| Sale | Executor with an agent | Usually after the grant of probate |
| Final return and clearance | Executor and accountant | Ask the accountant about a clearance certificate |
Timing varies with the estate and the court, so I haven’t put durations on these.
Probate in BC
Per the Province’s wills and estates guide: you apply for probate (with a will) or administration (without one) at a BC Supreme Court registry. Every application needs Form P2 and supporting affidavits, including assets and liabilities. The guide says notice must be given to beneficiaries and others, search the wills registry, and wait at least 21 days after notice before filing. The guide says a lawyer isn’t required, but there’s a lot of paperwork, and many executors use one.
The tax, briefly
The gain is reported on the final return. CRA’s filing deadlines: April 30 of the next year if death was January 1 to October 31, or 6 months after death if November 1 to December 31. Different dates apply if the person ran a business. CRA says payment is still due by the regular date. Work with an accountant on your estate’s dates. See tax planning before you sell.
What helps an estate sale go smoothly
- Get the family aligned before any offer
- Family disagreement is a common deal-killer. It helps to agree on keep, sell or buy-out before a buyer signs anything.
- Get a value you can explain
- Executors need a value they can explain to every beneficiary. An outside appraisal can give you that.
- Gather the documents early
- Leases, tax bills, reports and service contracts. Deals can die of fatigue, and an estate already has its own delays.
- One buyer isn’t a market
- A quick offer from someone who knew the deceased may be fine, but testing it against a few others can help protect the executor.
- Confirm authority before listing
- An executor usually needs a grant of probate, or an administrator a grant of administration, before selling. The Wills, Estates and Succession Act sets the framework, and the estate lawyer can confirm what applies.
Executors owe duties to the beneficiaries. Get a lawyer for probate and the sale, and an accountant for the final and estate tax returns.
Cam is a licensed real estate agent, not a lawyer or accountant, so take the legal and tax questions to them.
Keep, sell or buy out family
Some families keep the building, some sell, and some have one heir buy out the others. A clear value keeps that conversation fair. See also inherited property and when co-owners split.
Common mistakes
- Listing before the executor has authority to sell.
- Letting insurance or property tax lapse while the estate is sorted out.
- Not getting tax advice on the deemed disposition at death.
- Ignoring tenants and leases while the estate is open.
Executor authority and buyer diligence
Buyers and the land title office care whether the executor or attorney actually has authority to sell. The grant of probate or power of attorney has to support registration. If the wrong person signed, the deal stalls.
Expect normal commercial diligence: rent roll, leases, environmental questions, and estoppels. Estates sometimes have thin records; start gathering early. Clearance and holdback issues are for the estate lawyer and accountant.
I can help present the property clearly so buyers are not guessing about the file.
Questions people ask
Can I sell before probate?
Often not until the executor has a grant, but it depends on how the property is held and the estate. That’s a question for the estate lawyer. A value and preparation can usually start while you wait.
When is the final return due?
April 30 of the next year if death was January 1 to October 31, or 6 months after death if later in the year. Business income has different dates. Confirm your dates with an accountant.
Who pays the capital gains tax?
Generally it’s reported on the deceased’s final return and paid from the estate. Who pays and how much is a question for the estate’s accountant and lawyer.
In practice
How I help with an estate sale
This page is for you if you're an executor or family member who needs to sell commercial property from an estate.
- Happy to give you a clear read on value and the steps to sell.
- We can work with the estate lawyer and accountant so the sale fits the estate's timeline.
- I’ll handle tenants, showings and buyers so you're not managing it alone.
What to watch for
- Selling before you have the authority to sign.
- Tenants' rights that carry over to a buyer.
- Insurance and upkeep while the property is vacant.
The steps, in order
- Confirm with the lawyer when you can sell.
- Gather leases, taxes and records.
- Get a valuation and list.
Good questions to ask
- When can the estate legally sign a sale?
- Are there tenants, and what are their terms?
- What does the property need before sale?
Lease and property law has BC-specific wrinkles, so for anything legal, check with a BC real estate lawyer before you rely on it. This page is general information, not legal, tax or financial advice. Cam Appleton is a licensed real estate representative with Coldwell Banker Prestige Realty.
Next step
Handling an estate?
I can give you a date-of-death value and a calm plan for the sale, working alongside the estate lawyer and accountant.
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