When a Buyer dies before Closing in Ontario 

A real estate transaction in Ontario does not automatically fall apart if a buyer dies before closing. An Agreement of Purchase and Sale (“APS”) is a binding contract, and in most cases the buyer’s estate steps into the buyer’s position. This means the agreement generally remains valid and enforceable. The person responsible for administering the estate, now called the Estate Trustee or Executor,  will determine whether the estate can and should complete the purchase using estate assets or financing.

From the seller’s perspective, the first step is to pause and obtain legal guidance. The seller’s lawyer will typically request proof of death and confirmation of who has authority to act for the estate. In many cases a Certificate of Appointment of Estate Trustee (commonly called probate) will be required before the estate can complete the transaction. The seller cannot simply cancel the deal unless the agreement provides a clear contractual right to do so or the estate fails to close.

Imagine a single buyer dies after firming up the APS but before closing. If the estate has sufficient funds, the Estate Trustee may proceed to close the purchase, take title in the estate’s name, and later sell or distribute the property to beneficiaries. However, delays are common. If the Certificate of Appointment has not yet been issued, the closing date may need to be extended. If the estate ultimately cannot close, the seller may have the right to terminate and pursue remedies, including retaining the deposit or claiming damages.

A more complicated situation arises where there are multiple buyers on the APS and one dies before closing. If the surviving buyer intended to rely on joint financing, the death of the co-buyer may mean they no longer qualify for the mortgage on their own. In that case, the surviving buyer is still contractually bound but may be unable to complete the purchase. Unless the agreement was conditional on financing (and that condition has not been waived), the seller may treat the failure to close as a breach. For example, if two spouses agreed to purchase a home and one passes away the surviving spouse may not qualify alone, potentially exposing them to liability.

The death of a buyer does not automatically void an APS in Ontario. The contract typically continues, with the estate stepping in to fulfill the buyer’s obligations. For sellers, this can mean delays and added complexity, but also continued legal rights under the agreement. Each situation depends on the specific terms of the APS, the estate’s ability to act, and whether financing or other conditions can be satisfied. Early involvement of legal counsel is essential to navigate these situations and determine the best course of action.

The content on this post is for information purposes only and is not legal advice, which cannot be given without knowing the facts of a specific situation. You should never disregard professional legal advice or delay in seeking legal advice because of something you have read on this website. The use of the website does not establish a solicitor and client relationship.