Acting As an Executor? Avoid these potential errors.

Many people don’t realize it, but there are many, many executive sales in Saskatoon and across Saskatchewan because a large portion of housing stock is owned by aging homeowners. Estate properties make up a meaningful share of listings every year!

Executor sales can look straightforward on paper, but in practice there are a handful of probate-specific pitfalls that can complicate real estate transactions in Saskatchewan. These are the ones that tend to cause delays, disputes, or collapsed deals.

1. Listing before probate is granted

This is extremely common.

An executor can indeed market or list the home before probate, but they cannot legally transfer title until probate is issued through the Court of King's Bench for Saskatchewan.

What can go wrong:

• Buyers expect a normal closing timeline

• Probate takes longer than expected

• Deals may collapse because possession dates cannot be met or agreed upon

Offers in this instance must be clear in ensuring that both parties agree to possession being subject to probate being granted. Firm possession dates need to be avoided until probate is issued, and a healthy deposit should be collected in order to sway buyers from walking away easily.

2. Multiple beneficiaries with opinions

Even though the executor legally controls the sale, beneficiaries often feel emotionally or financially invested. Typical problems that may arise are:

• Disagreements about pricing

• Someone thinks the house should be kept

• Someone thinks the offer is too low

Legally, the executor’s duty is to act in the best interest of the estate, not to get unanimous approval. But practically, poor communication can escalate into legal challenges. Good practice includes documenting market value, keeping beneficiaries informed, and showing evidence the home was properly marketed.

3. Emotional attachment affecting pricing

Beneficiaries often price based on memory value, not market value. Feelings like, “Mom put so much into this house,” or, “We grew up here” can have a huge impact on determining a price that feels right.

The market, unfortunately, values the non-emotional things like location, condition, and comparable sales. Overpricing an estate property often leads to a long market time and a lower eventual sale price.

4. Estate condition disclosures

Executor sales often involve homes the executor never lived in. In Saskatchewan, sellers may choose to not complete a Property Condition Disclosure Statement (PCDS) used by the Saskatchewan REALTORS® Association if they cannot adequately comment on the specifics of the property. This does not necessarily deter buyers, but can signal to them to rely more heavily on their own inspection.

5. Vacant home insurance problems

Insurance companies treat vacant homes very differently. If the property sits empty:

• Standard policies may become invalid

• Coverage may require vacancy permits or inspections

Executors sometimes don’t realize this until after something happens. Risk areas may include frozen pipes, break-ins, or fires.

Mitigate these risks by connecting with the insurance company to inform them the home will now be vacant, and follow their advice on how to proceed.

6. Capital gains surprises

If the home was the deceased’s principal residence, there is usually no capital gains tax up to the date of death. However, problems can occur if:

• The property appreciates after death, or;

• The estate holds the property for a long time.

That gain may be taxable to the estate, and executors often miss this planning issue.

7. Cleaning out the property

This sounds simple but becomes a major, major project. Executors frequently deal with decades of belongings, sentimental items, and disputes over personal property. This can cause significant delays because beneficiaries want time to sort items, and sometimes no one wants to actually clear the house.

8. Offers that exploit estate sellers

Some buyers specifically target estate listings assuming the executor:

• wants a quick sale

• doesn’t know the market

• will accept low offers

Executors sometimes accept well below market value out of stress or urgency. You must, must, must hire a skilled real estate agent to ensure proper pricing, high exposure to the market, and strong negotiations to protect yourself, the asset, and the beneficiaries involved.

9. Executor liability

Executors can actually be personally liable if they:

• sell far below fair market value

• favour one beneficiary

• mishandle estate assets

The main takeaway? Proper documentation, procedure and professional advice matter.

Reach out for a pressure-free, straightforward conversation any time - I’m here for you.