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What Happens if a Seller Passes Away Prior to Closing?

Blog by | April 22nd, 2013

What Happens if a Seller Passes Away Prior to Closing?

In British Columbia real estate contracts continue to exist after the death of any one of the parties. A contract for the sale of land is binding on the deceased's estate despite the seller dying prior to signing the transfer document.

The problem is, if the seller passed away before signing the transfer document, the executor of the estate cannot sign the transfer until probate is granted which can take months!

In this situation, typically the parties will grant a pre-closing possession (tenancy) based on having all the necessary documents held in trust until probate is granted and the transaction can close.

In order to avoid this situation - if you have a Seller who is sick and you are concerned about him/her passing away before closing - have the Seller sign the transfer documents ahead of time.


Alexandra Axsen

Owner/Managing Broker

Lake Okanagan Realty

Tel: 250.870.2792