If you’re a Canadian expat living in the United States or an American with property ties back in Canada, you probably assume that selling your Canadian property will be straightforward. List it, sell it, collect your money. But what happens when things go sideways and you’re thousands of kilometres away with no one on the ground to help?

I recently helped a client through one of the most complex cross-border real estate situations I’ve encountered. She’s a Canadian who moved to the USA for work, became a dual citizen, and owned a rental property in Toronto. What started as a routine landlord-tenant relationship turned into months of emotional, logistical, and legal challenges, all managed from across the border.

When the Unexpected Happens and You’re Not in Canada

My client had originally purchased the condo as her home. When she relocated to the United States, rather than selling, she decided to lease it out. I helped her find a tenant and managed the lease on her behalf. For a while, everything ran smoothly.

Then the tenant passed away.

When something like this happens, it’s not just a legal matter. It’s a deeply human one. There’s a person’s life in that unit. Their belongings, their memories, their personal effects. And there are family members grieving on the other side of it. Navigating this situation requires empathy first and logistics second.

Tracking Down Family and Getting Access to the Unit

One of the first challenges was simply finding the tenant’s family. There was no emergency contact readily available, and the extended family was not easy to locate. I spent considerable time searching and reaching out to find the right people so they could be notified and given the opportunity to collect their loved one’s belongings.

On top of that, the landlord had never kept a set of keys to the unit. This is more common than you would think, especially when a property is managed from another country. Getting access to the unit became a challenge in itself that had to be resolved before anything else could move forward.

If you are a Canadian expat in the United States or an American who owns rental property in Canada, take this as a reminder: always keep a spare set of keys and maintain up-to-date emergency contact information for your tenant. These small steps can save you enormous headaches down the road.

What Happens to the Lease When a Tenant Dies in Ontario?

Under Ontario’s Residential Tenancies Act, when a tenant passes away, the lease is terminated. The estate typically has 30 days from the date of death to vacate the unit. This applies whether or not there was time remaining on the lease.

In my client’s case, the estate ultimately left everything in the unit for the landlord to deal with. All of the tenant’s personal belongings, furniture, and household items remained behind. As a landlord living in the USA, my client had no way to handle this on her own. I stepped in and coordinated the removal and respectful disposal of all belongings from the property.

This is one of those scenarios that Canadian expats and Americans with rental property in Canada never plan for but should think about. Having someone on the ground who can act on your behalf is critical.

Related: What happens when a tenant passes away and other occupants are not on the lease? The lease may be nullified entirely, and those occupants may not be entitled to stay. Coming Soon.

Managing a Renovation From the United States

Once the unit was cleared, some work was needed to bring the property to market-ready condition.

For a landlord living in the USA, coordinating contractors, timelines, and budgets remotely is a challenge even for smaller projects. I organized the contractors, followed the renovation through every stage, and brought in a professional cleaning team at the end to prepare the unit for showings. My client didn’t have to fly back to Canada once during this entire process.

This is one of the biggest advantages of working with someone who understands the unique needs of Americans and Canadian expats selling property in Canada. You need more than a listing agent. You need someone who can be your eyes, ears, and boots on the ground in Toronto, Mississauga, Oakville, Milton, Burlington, or wherever your property is located.

Selling in a Tough Market

With the renovation complete, we listed the property. The market was challenging. Inventory was high, buyers were cautious, and competition for condo sales in Toronto was fierce. But with the right pricing strategy, professional staging, and targeted marketing, we secured a successful sale.

For US-based owners, selling remotely adds another layer of complexity. You are relying entirely on your agent to manage showings, negotiate offers, and guide the transaction to closing. Trust and communication become everything.

The Clearance Certificate Surprise for Dual Citizens

Here is something that catches many dual citizens off guard: even if you hold a Canadian passport, you may still be treated as a non-resident for tax purposes by the Canada Revenue Agency.

CRA determines your tax residency based on where you actually live and how many days you spend in Canada, not which passport you carry. Under the factual residency test, CRA looks at where your primary ties are. Your home, your spouse, your dependents, your bank accounts, your social connections. If you live and work in the United States full time, CRA will likely consider you a non-resident of Canada regardless of your citizenship.

The Canada-US Tax Treaty includes a tiebreaker rule. If both countries claim you as a resident, the treaty uses factors like your permanent home, centre of vital interests, and habitual abode to determine which country gets to tax you as a resident. For most Canadian expats living and working in the USA, this means Canada treats you as a non-resident.

Why does this matter when selling? Because non-residents who sell taxable Canadian property are required to obtain a Section 116 clearance certificate from CRA before the sale proceeds can be released. Without it, the buyer’s lawyer is legally required to hold back 25% of the sale price and remit it to CRA on your behalf.

No lawyer will release your funds without a clearance certificate. Even if you think your citizenship should exempt you, the lawyer’s professional liability means they will not take that risk. They will hold your money until the certificate is in hand.

The clearance certificate process can take anywhere from a few months to over nine months depending on your situation and CRA’s processing times. I’ve had clients wait eight months and others who are still waiting after nine. The official estimate is three to six months, but in practice it often takes longer.

This is why starting the process early, ideally before you even list your property, is critical. I helped my client connect with a cross-border accountant who handled the clearance certificate application and a lawyer who was able to complete the entire closing process remotely while my client remained in the USA. For a detailed breakdown of the clearance certificate process and what it means for Americans and Canadian expats selling property in Canada, see my complete guide.

What This Story Means for You

If you are a Canadian expat living in the United States, an American with property in Canada, or a dual citizen with real estate ties back home, this story is not unusual. Life happens. Tenants pass away. Properties need major work. Markets shift. And through it all, you are managing everything from another country.

The difference between a smooth experience and a stressful one comes down to having the right team. You need an agent who understands cross-border transactions, a lawyer who can work remotely, and an accountant who knows both Canadian and American tax obligations.

I help Americans and Canadian expats sell their properties in Toronto, Mississauga, Oakville, Milton, Burlington, and across the GTA. Whether your situation is straightforward or as complex as the one I’ve described here, I’ve been through it and I can guide you through every step.

Ready to Talk About Selling Your Canadian Property?

Have questions about selling your property in Canada from the United States? I offer a free seller’s consultation where we can walk through your specific situation and build a plan that works for you.