Probate is a fairly common process in law and real estate. Once completed, it allows you to manage the major assets of someone’s estate after they’ve passed away. For example, selling their house. 

However, in some cases, you may not need probate to sell a deceased person’s home. This is where the First Dealings Exemption (aka the FDE) comes in. 

In this blog post, we’ll look at the basics of estate sales, probate, the FDE, and everything else you need to know if you’ve been tasked with selling a deceased person’s home. 

Before we dive in, here’s what you need to know: the First Dealings Exemption can be a little bit complicated. So while this blog post will cover the basics, it’s by no means a legal guide. If you have any questions, feel free to reach out to our team or contact a lawyer. 

When is Probate Not Necessary?

In today’s day and age, there seem to be a lot of misconceptions floating around about what’s needed to sell someone’s house after they’ve passed away. For instance, you can’t automatically sell your parents’ home (or any other assets) just because you’re the next of kin. But the reality is that probate is required almost every time (at least in Ontario). 

However, there are a few exceptions where probate is not necessary. Among those is the First Dealings Exemption. 

Searching for more advice related to selling a loved one’s home? Check out these related blogs next. 

• How Flexible Should You Be During Home Negotiations?
• How to Find a Reliable Real Estate Agent
• The Importance of Agent Experience

What is the First Dealings Exemption?

The First Dealings Exemption is a rule that allows certain properties to be sold without probate. 

In simple terms, the FDE applies to houses and properties that haven’t been significantly modified or transferred to another owner since Ontario’s adoption of the electronic Land Titles System. Eligibility is somewhat limited, but the benefits are great if you do qualify. 

Save More Than Just Time

The First Dealings Exemption doesn’t just save you time. As part of skipping the probate process, it can potentially come with major financial perks, too. That’s because applying for probate isn’t free. 

Managing an estate requires legal and regulatory intervention, which comes at a cost. Specifically, Ontario’s Estate Administration Tax, which is sometimes called ‘probate fees’. You essentially pay this tax as a deposit when applying for an estate certificate. 

Probate fees aren’t one size fits all. Instead, they’re charged based on the calculated value of the estate by the Provincial Government. This means that qualifying for the FDE could save you thousands of dollars (if not tens of thousands) on Estate Administration Tax costs. 

Do I Qualify For the First Dealings Exemption?

Next, let’s look at some of the basic requirements for the First Dealings Exemption. While the ins and outs of this can get complicated, we’re going to look at 3 high-level requirements. If you have specific questions about your eligibility, ask a lawyer. 

Is the House Land Titles Conversion Qualified?

First, the property must be designated as Land Titles Conversion Qualified (LTCQ). This means that the home was originally listed on Ontario’s old Land Registry System, before being moved to the new electronic Land Titles System. 

You can find out if (or when) the property was transferred to the modern system by checking the parcel register or deed. Keep this transfer date handy, you’ll need it later. 

Is it the First Dealing?

On top of having an LTCQ designation, the property must not have undergone dealings (bought, sold, or transferred) since being added to the electronic Land Titles System. In other words, your sale of the home must be the first dealing since the transfer date. 

Is There a Legal Will?

Finally, the original homeowner must have a valid Will that includes the home in question. You must be in possession of this Will if you’re planning to sell the property. 

On the hunt for more home selling advice? Read these blogs next!

• How to Add Value to Your Home Before Selling it
• How Long Does it Take to Sell a House?
• When is The Best Time to Sell a House in Ontario?

Can I Skip Probate Another Way?

Keep in mind that the First Dealings Exemption isn’t some crafty loophole or sneaky shortcut. It’s a real legal policy with strict applications. If you don’t qualify for the FDE, that’s okay. You’ll still be able to manage an efficient home sale after completing the probate process. 

A key component of this is having the right professional expert by your side. More on that next! 

Selling Your Parents’ Home?

Selling someone’s home after they’ve passed away is a major process. However, with the right help from a compassionate and knowledgeable real estate agent team (like us) you can make it through the journey with as little stress as possible.

No matter your reasons or circumstances for selling, Puckrin & Latreille can guide you toward a smooth, high-return sale. As a multi-generational real estate team, family plays a big role in how we sell homes. We’ll be here for you every step of the way.

Selling real estate as part of estate management? We can help! Call 905-985-7300 or send an email to hello@liveplayinvest.com to reach out.

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Whether buying or selling a home in Port Perry and the surrounding area, our team has you covered. Book a call with us today to get started.