Inheriting property is typically an overwhelming and sometimes stressful process. It often comes during a time of grief. While the potential tax and legal complexities can also be a lot to handle, it’s easy to put off this decision, even if it’s the right next step.
It doesn’t need to overwhelming, that’s why we’ve put together this guide. We’ll walk you through everything you need to know about selling inherited property in BC.
From initial legal requirements to preparing your home for sale and navigating the closing process.
You’ll have a clear roadmap to help you make informed decisions during this challenging time, specific to BC.
So, You Inherited a Property… Now What?
Selling an inherited property isn’t as straightforward as listing the home on the market. Before you can even consider showings or offers, there are a few legal and administrative steps that can feel daunting without proper guidance.
The timeline varies depending on the complexity of the estate and court processing times, but it generally takes several months to over a year to complete the entire process. Understanding this timeline helps set realistic expectations and reduces stress along the way.
Here’s a summary of what to expect during each phase:
| Phase | Duration | Key Activities |
| Probate Application | 4-6 months | Gathering documents, filing forms, court processing |
| Title Transfer | 2-4 weeks | LTSA processing and registration |
| Property Preparation | 2-8 weeks | Appraisal, inspection, repairs, staging |
| Marketing & Sale | 4-12 weeks | Listing, showings, negotiations, closing |
The probate phase often takes the longest and represents the most crucial step that cannot be bypassed. During this time, you’ll work with lawyers and the court system to establish legal authority over the property.
Once probate is granted, the subsequent phases move more quickly, though proper preparation during each stage significantly impacts your final sale price and overall experience.
We recommended you navigate through this with a lawyer and accountant. If you’re not sure who to go with, our team can help offer reliable and trusted referrals. Contact us.
Provincial Probate Resources:
- Government of BC – Wills and estates
- Supreme Court Civil Rules – probate forms
- Public Guardian and Trustee of BC
- Life circumstance exemptions
- Taxable capital gains on property, investments, and belongings
The information provided on this website is for general educational purposes only and does not constitute legal, tax, or financial advice. Every probate and inheritance situation is unique, and laws vary by jurisdiction. Before making any decisions regarding inherited property, probate proceedings, or estate administration, please consult with a qualified attorney and tax professional who can advise you based on your specific circumstances and local regulations.
How to Sell an Inherited Property: Step by Step
[The Easy Route: Get in touch with us, and we’ll take care of the entire process. From getting supporting professionals for cleaning, moving, and other duties, to selling and closing. We’re here for it all]
Let’s break down the selling process into five manageable steps that will guide you from inheritance to closing.
Step 1: Understanding the Financials
With the legal foundation in place, it’s time to assess the financial aspects of your inherited property.
Get a Property Appraisal
One of your first priorities should be obtaining a professional appraisal to determine the property’s fair market value at the date of death. This valuation is important for tax purposes, but also so you know the rough listing price.
Calculate Ongoing Costs
Even if the property sits vacant, there will be on-going expenses you’ll need to budget for. These include property taxes, utility bills (hydro, gas, water), insurance premiums, and any existing mortgage payments. Create a monthly budget to manage these costs until the property sells.
Insurance deserves special attention. You may need to switch to a “vacant property” policy if no one is living in the home. Most insurers require notification within 30 days of vacancy. We highly recommend chatting with an insurance professional about this aspect, too.
Step 2: Preparing the Property for Sale
An inherited property, particularly one where someone lived for many years, often needs preparation before it’s ready to be listed. Here are some of the main areas of consideration for getting the property ready to sell.
Declutter and Depersonalize
Work with your family to sort through personal belongings. Decide what to keep, donate, sell, or discard. This process can be emotionally challenging, so take your time and consider hiring professional organizers if needed.
While hard, it’s important to remove personal items like family photos, collections, and keepsakes. The reason is because we’ll want buyers to envision themselves living in the space rather than feeling like they’re intruding on someone else’s home.
If the grieving process has not concluded, hiring professional movers and a storage locker can also be a valid option. This allows you to prepare the home without getting involved in the packing process, and buying you more time to process while the home is getting ready to be listed.
Make Necessary Repairs
Consider hiring a professional inspector to identify any issues with the home’s structure, roof, plumbing, or electrical systems. Address critical repairs such as leaky roofs, faulty wiring, or broken furnaces, as these problems will likely surface during buyer inspections and can derail negotiations.
Deep Clean and Enhance Curb Appeal
A thorough professional cleaning makes an enormous difference in how the property presents. Don’t overlook the exterior—simple improvements like lawn care, hedge trimming, pressure washing walkways, and adding fresh plants near the entrance can significantly boost curb appeal.
Recommended Resource: The Costs of Selling Your Home in BC
Step 3: The Home Sale Process
Now you’re ready to actively market and sell the property.
This step is short as we highly recommend in working with a reliable realtor to support the sale of the home. You’ve got a lot on your plate and a trusted realtor will help you sell the home without all the complications and involvement.
Choose a realtor with specific experience in estate sales in your area of Metro Vancouver. They’ll understand the unique challenges and legal requirements involved in selling inherited property and can connect you with other professionals you’ll need throughout the process.
Step 4: Offers & Closing
When offers start arriving, your realtor will guide you through the negotiation and closing process.
Reviewing Offers
If you’re the executor, you’ll review all offers and your realtor will walk you through certain considerations like purchase price, conditions such as financing requirements, inspection clauses, and closing timelines.
Sometimes a lower offer with fewer conditions proves more advantageous than a higher offer with complex requirements.
Accepting an Offer
Once you accept an offer and all conditions are satisfied (such as financing approval and satisfactory inspections), the sale becomes legally binding.
The Closing Process
Finally, your lawyer or notary will handle the final legal steps, including preparing transfer documents, paying off any existing mortgages and estate debts, calculating final adjustments for property taxes and utilities, and distributing the net proceeds to beneficiaries according to the will’s instructions.
The funds typically remain in the lawyer’s trust account until all estate obligations are settled, ensuring proper distribution and legal compliance.
Recommended Resource: Subject To Sale in BC: How It Works & Should You Avoid?
The Importance of Working with a Trusted and Experienced Realtor
A realtor who specializes in estate sales becomes an invaluable partner throughout this complex and emotional process.
An experienced realtor will have a network of trusted professionals including lawyers, appraisers, contractors, cleaners, and stagers. They understand the sensitive nature of your feelings and the transaction as a whole. And can provide guidance that goes beyond simple sales expertise.
Basically acting like a project manager for the sale of an inherited property, coordinating the many moving parts required to prepare and sell the property efficiently while achieving the best possible price. Their experience helps minimize stress for you and your family during an already difficult time.
How to Get The Best Price for an Inherited Property
Maximizing your sale price requires strategic planning ahead of listing the property on the MLS and receiving offers. Here are some key considerations.
Don’t Rush the Preparation Phases
Take adequate time to properly declutter, clean, and address necessary repairs. The difference between a property that’s been carefully prepared and one that’s been rushed to market can be thousands of dollars in final sale price.
Consider Professional Staging
While staging isn’t always required, it’s highly recommended when selling an inherited property, because many inherited homes reflect the previous owner’s personal style and may appear dated to current buyers. Professional staging modernizes the space and helps buyers see its full potential, which can lead to a better sale price for you.
Even minimal staging can make a substantial difference. Focus on key areas like the living room, kitchen, and primary bedroom if full staging isn’t in your budget.
Price Strategically from Day One
Overpricing causes properties to sit on the market too long, which may lead to lower offers later as buyers wonder what’s wrong with the home. A strategic, market-driven price attracts more potential buyers and can create competitive bidding situations.
Maintain Flexibility with Showings
The more accessible your property is for viewings, the more potential buyers will see it. That’s why we recommended professional staging and coordinating living arrangements elsewhere if there is someone living there, for the time being.
This increased exposure typically translates to more offers and better final sale prices.
Commonly Asked Questions
What can go wrong when selling an inherited property?
Several challenges can come up during the process.
Even before you begin most of this process listed in the article, probate delays can stall everything for months beyond initial estimates. Disagreements among beneficiaries about sale price, property preparation, or timing can create family conflicts that complicate decisions.
Once the legalities are sorted, unexpected repair issues discovered during buyer inspections can add costs and potentially complicate plans, too. Or worse, hidden liens or debts against the property can require resolution before closing (this can be avoided with proper due-diligence).
You can easily mitigate all these risks by working with experienced professionals and maintaining open communication among all beneficiaries, and keeps the process moving forward smoothly.
Do you pay property transfer tax on inherited property BC?
No, beneficiaries do not pay Property Transfer Tax (PTT) when inheriting real estate in British Columbia. A specific exemption applies to transfers from an estate to beneficiaries, saving potentially thousands of dollars in taxes.
When the beneficiary later sells the property to a third party, the new buyer will be responsible for paying the PTT based on the purchase price. Standard procedure.
Final Thoughts
The key to success lies in assembling a team of trusted professionals—an experienced realtor, a knowledgeable lawyer, and a qualified accountant—who can support you through every stage. These experts handle the complex details while you focus on making informed decisions that serve your family’s best interests.
Our team here at Metro Vancouver Life can help you sell an inherited property and relieve you from that stressful process.
Contact us for help selling your inherited property.
