Selling an Inherited Home in BC

In BC you can usually list the property before probate is granted, but you cannot complete the sale (transfer title) until probate is issued. Most BC executors list with a longer-than-typical possession date (90+ days from offer acceptance) so probate has time to process. Probate currently takes 8–16 weeks in BC depending on Supreme Court Registry workload. The Land Title Office requires either a Grant of Probate or Letters of Administration to register the transfer.

On the date of death, the deceased is "deemed" to have sold all their property at fair market value (FMV). If the home was the deceased's principal residence, the principal residence exemption usually eliminates capital gains tax on the deemed disposition. If the home was a rental or vacation property, the estate owes capital gains on the FMV minus the adjusted cost base (ACB) — payable on the deceased's final tax return.

You need a defensible FMV as of the date of death. Best practice: hire a certified appraiser (typical cost $400–$800 in BC) for a written appraisal at the date of death. CRA accepts realtor CMAs in some circumstances, but for a property worth $1M+ a written appraisal is much more defensible. The FMV becomes the new ACB for the beneficiaries — every dollar above this when you sell is taxable to the estate or beneficiaries.

Possibly. Between date-of-death FMV and the eventual sale price, any further appreciation is taxable as a capital gain — to the estate if sold during estate administration, or to the beneficiaries if distributed in-kind. The principal residence exemption is generally lost once the original owner dies (unless a beneficiary moves in and treats it as their own principal residence going forward). Run the numbers with an estate-experienced CPA before deciding to hold or sell.

Common in BC. The executor has legal authority to make decisions about the estate, including selling property, but a wise executor consults all beneficiaries early. Best practices: (1) get an independent CMA upfront so everyone sees the same number, (2) communicate timelines and offer terms transparently, (3) document all decisions in writing, (4) lean on the estate lawyer to mediate where needed. Disagreements that escalate can be resolved by court application but rarely worth it — most are settled by reasonable transparency.

Most BC estates clear personal property before listing. Options: family members take what they want by mutual agreement; estate sale company sells items (typically 30–50% of value to estate after fees); donation to charity (with itemized donation receipts where valuable); junk removal for the rest. I work with two estate-sale companies in Greater Vancouver and can introduce you. Budget 2–6 weeks of clearance time depending on home contents.

Usually no — and almost never major renovations. Inherited homes typically benefit most from: (1) deep professional cleaning, (2) carpets and walls (paint, replace high-traffic carpet), (3) curb appeal (yard work, exterior wash), (4) inexpensive cosmetic updates (light fixtures, hardware). Major renovations rarely return their cost in BC and often delay the sale by 3–6 months — which costs the estate carrying expenses (taxes, insurance, utilities, lawn care). I advise clients with a written ROI estimate on every proposed improvement.

A "used residential property" sale by an estate or beneficiary is generally exempt from GST. The exception is if the property was a recently-built home being sold by the original owner, or a rental property where the deceased claimed CCA — these have specific GST rules and you should consult a CPA. For 99% of inherited principal-residence sales, GST is not a concern.