Things to pay attention to when selling a house from an Estate in Quebec
- Verify the liquidator’s authority
Before listing the property, it’s crucial to confirm that the liquidator (executor) of the estate has been properly appointed, either by will or by the court in the absence of a will. The liquidator must have the legal authority to administer the estate, including the power to sell real estate. If there is more than one liquidator, unanimous decisions may be required, unless the will provides otherwise. - Obtain a declaration of transmission
A declaration of transmission must be prepared and registered at the land registry office (Registre foncier du Québec) to officially transfer ownership from the deceased to the estate. This legal step is necessary before any sale can take place. Without it, the estate cannot be shown as the rightful owner of the property. - Check for debts and claims
The estate must ensure that the property is free of liens, hypothecs (mortgages), or other charges before proceeding with the sale. Moreover, the liquidator must verify that no creditors have submitted claims against the estate that could affect the sale proceeds. Selling a property without properly addressing debts could result in personal liability for the liquidator. - Get the heirs’ consent when required
Once the estate’s debts are paid, if the house is considered part of the inheritance, the heirs’ approval may be necessary before it can be sold. Even if the liquidator has authority, it’s often best practice to secure the heirs’ written consent to avoid future disputes. - Ensure tax compliance
The sale of the property may have tax implications, particularly with regard to capital gains, if the house is not a principal residence. The liquidator should obtain a clearance certificate from Revenu Québec and the Canada Revenue Agency to avoid potential tax liabilities. Consulting an accountant or notary can help ensure proper compliance with all applicable tax rules.
Allen Madelin Avocats offer consultations both in person and via videoconference. The first consultation is offered for $125.For more information, please contact us by telephone: 1 514 904 4017 or by e-mail: [email protected].
