The Ontario Estates Administration Act includes a provision known as the automatic vesting provision (section 9), which stipulates that real property that is not distributed among the beneficiaries within three years after the death of the deceased will automatically vest in the beneficiaries.
However, section 10 of the Ontario Estates Administration Act states that "nothing in section 9 derogates from any right possessed by an executor or administrator with the will annexed under a will or under the Trustee Act or from any right possessed by a trustee under a will." This means that the intention of the testator expressed in their will always takes precedence over section 9.
If the will contains an express or implied power of sale and a power to postpone conversion, and the real property forms part of the general residue, section 9 will not apply, and the automatic vesting will not occur. However, if the real property is specifically gifted, the application of section 9 will depend on the terms of the will, and the intention of the testator.
It is important to note that while section 9 provides for automatic vesting, it may require a court application to obtain a Vesting Order if the terms of the will override the provisions of the Estates Administration Act. A Vesting Order is an equitable remedy that requires the court to exercise its discretion to make the order and ensure a fair and just outcome. Once a Vesting Order is granted, the party who obtained it can take steps to register the Order on title to the property.
For additional information on Ontario Estates Administration Act Automatic Vesting Period or any other Estate related matter, feel free to contact our E is for Estates team.

Erin Watson, J.D.
E is for Estates
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