Selling
You’ve inherited a commercial property
Inheriting a building, or a share of one, comes with decisions and often with family to agree with. I can help you understand what you have and what your options are, at a pace that suits you. Start with the will and title.
Seller representation
What selling inherited commercial property involves
A plain explainer if you’re new to this.
- What it is
Selling property from an estate
When someone dies owning property, their executor usually has to deal with it, often by selling it.
- How it works
Probate and the executor
In BC, the executor often needs a court grant of probate before selling. See BC wills and estates. Property held jointly may pass outside the estate.
- Tax
The final return
At death, property is generally treated as sold at fair market value for tax purposes. See CRA’s capital gains guide and talk to the estate’s accountant.
- What I do
Value, prepare and sell
I give the executor a realistic value, gather the leases and documents, and handle the sale once the paperwork allows it.
General information, not tax or legal advice. Rules and rates change, and every situation is different. Talk to your lawyer and accountant before you act on anything here.
First steps
The executor and the estate lawyer lead at the start. Before anything is sold, the estate usually needs probate, and there may be tax to settle. Ask them what’s needed and when.
Understand what you have
- Who the tenants are, what they pay and when their leases end.
- Who has been managing the building, and what needs repair.
- The mortgage, property tax and insurance.
- What it might be worth, and what it would cost to keep.
Your options
- Keep it and hire a property manager, if the income and the family both support that.
- Sell it and divide the proceeds.
- Buy out family members who want to sell, if one of you wants to keep it.
- Wait, if the timing or the leases point to a better result later.
Family decisions
Family decisions are easier when everyone has the same facts. I can give everyone the same honest view of value and options.
Questions people ask
Can I sell an inherited property before probate?
Usually not. The executor generally needs probate before selling. Ask the estate lawyer.
Will there be tax?
Often there is tax on the gain at the date of death, handled by the estate. Ask the estate’s accountant.
Can you value it for the estate?
I can give an opinion of market value. For tax purposes the estate may need a formal appraisal.
Go deeper
If you’re looking for more details
Early steps
- Find out who has the legal right to sell. Usually the executor, once the estate is in order.
- Collect the leases, tax notices and insurance.
- Keep the building insured and managed while you decide.
- Get advice on taxes before you sell.
What should I gather, ask and watch for?
Documents to gather
- Title and property tax notices
- Leases and operating statements
- Mortgage statement and terms, including prepayment penalties
- Wills, partnership or shareholder agreements, if they apply
Questions to ask
- What is the property worth today, roughly?
- What tax does a sale trigger, and can timing help? (ask your accountant)
- What does it cost to break the mortgage?
- Who has to sign, and do they all agree?
Common mistakes
- Waiting until you have to sell
- Making the decision without tax advice
- Not checking who has authority to sign
- Underpricing to sell fast without testing the market
Typical timeline
- NowValue range and tax advice
- Months 1 to 3Decide and prepare
- Marketing to offerOften 1 to 3 months
- Completion30 to 90 days after conditions
Typical ranges. Your lease, lender and the City set the real dates.
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Next step
Inherited a property and not sure what to do?
Give me a call. We’ll start with what you have.