Short answer
Confirm who has legal authority to sell or mortgage the property and whether a Certificate of Appointment of Estate Trustee is required. Probate and estate conditions can delay closing, so the agreement, financing and possession dates should leave room for the estate lawyer’s work.
Why this becomes a closing problem
A buyer receives a mortgage approval for a quick closing, but the estate cannot yet transfer title. Rate protection, appraisal validity, possession plans and bridge arrangements may expire while legal authority is obtained.
A practical Ontario example
An executor accepts an offer subject to obtaining probate. The buyer should not treat the expected certificate date as guaranteed. A carefully drafted condition or extension mechanism may prevent a legal delay from becoming a purchaser default.
How the lending routes may differ
- A lender: can approve the buyer but will not fund until the seller can transfer acceptable title and all commitment conditions are satisfied.
- Alternative/B lender: may solve borrower income or property issues but cannot bypass missing estate authority.
- MIC/private lender: may help with timing after title can legally be dealt with; it cannot replace probate or a required court authorization.
Important boundary: Ontario legislation and legal-registration requirements are not lender underwriting policies. Each lender decides its acceptable borrower, property, priority and documentation requirements, while the closing lawyer determines the legal work needed.
Questions to ask now
- Who is the estate trustee?
- Has probate been issued or only applied for?
- Can the agreement extend if authority is delayed?
- Will the appraisal, rate hold and financing approval remain valid?
Rajiv’s practical view
Have an Ontario real-estate lawyer review the estate condition before making the offer firm. Build a mortgage timeline around legal reality, not the hoped-for certificate date.
Source and context
This is general Ontario education, not legal, tax or title advice. Obtain transaction-specific advice from the closing lawyer and other appropriate professionals.
Continue your research
Closing-problem guidance · Real Estate Centre · Mortgage Knowledge Centre
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Rajiv Verma, Mortgage Broker · Ontario