Managing the Florida property during probate, the operational reality for Canadian heirs

1 The 3 to 18 months nobody warns Canadian heirs about

A typical scenario. A father in Quebec City dies on March 15. His Naples condo, valued at USD 480,000, is left to his three adult children. The Canadian probate begins in April with the notary. The Florida ancillary administration is opened by the Florida attorney in mid-May. The court issues letters of administration in late July. Between March 15 and late July, four and a half months have passed. During that period the HOA dues kept billing (USD 680 per month), the property tax bill arrived for the second installment (USD 1,800), the homeowner's insurance renewed (USD 2,600 annual), and the lawn service quietly stopped showing up because no one was paying them. The HVAC system tripped during a humid week and the unit's interior took on a musty smell that, by the time anyone discovered it, had become a mold-remediation claim.

This is the operational gap most Canadian heirs miss. The Florida property is legally suspended in time between the date of death and the appointment of the personal representative, but the world around the property does not pause. Bills are issued, deadlines pass, structures degrade, and tenants (if any) wait for someone to respond to their calls.

The family's first task, ideally within two weeks of the death, is to identify who will manage the operational layer of the Florida property until the personal representative is appointed and authority is consolidated. This is rarely a formal role; it is usually the most geographically convenient or operationally minded family member, often the heir who has visited the property most recently. That person becomes the de facto operational contact for the HOA, the insurance carrier, the utility companies, and any service providers.

2 Authority before and after letters of administration

The authority vacuum between death and appointment of the PR is awkward but legally clear. The decedent's bank accounts are typically frozen by the bank within 24 to 72 hours of being notified of the death. Cheques drawn on those accounts after the date of death bounce. The decedent's credit cards are cancelled. Even the decedent's direct-debit authorizations for monthly bills are no longer valid, because the legal capacity to honour them ended at death.

What the heirs can legitimately do during this gap is limited to emergency preservation. Pay the HOA dues from their own personal funds to prevent a lien from being recorded. Pay the property insurance renewal from their own funds to prevent a coverage lapse. Pay the mortgage from their own funds to prevent default. All of these are reimbursable by the estate once the PR is appointed and the personal representative's bank account is opened with the federal EIN tied to the estate. The Florida-licensed probate attorney handling the ancillary administration coordinates the reimbursement.

What the heirs cannot do before letters of administration. They cannot sign a listing agreement with a real estate broker on behalf of the estate. They cannot accept an offer. They cannot enter into a new lease with a prospective tenant. They cannot hire a contractor for non-emergency repairs. They cannot pay themselves for their time or expenses without later reimbursement approval from the PR. They cannot enter into any agreement that binds the estate to a payment obligation.

Some Florida counties (Sarasota, Pinellas, and Orange among them) issue letters of preservation as an interim emergency order before formal letters of administration. These are limited in scope, typically authorizing payment of specific emergency bills, but they help bridge the authority gap when the family identifies an urgent need (a roof leak, a burst pipe, an HOA lien notice). The Florida-licensed probate attorney can request these emergency orders.

3 HOA, property taxes, insurance, mortgage, the four monthly bills

HOA dues. A Florida condominium association under Fla. Stat. ch. 718 or a planned-development HOA under ch. 720 typically bills monthly. Delinquency notices begin at 30 days. A statutory lien can be recorded after 45 days. Late fees range from USD 25 to USD 100 per missed payment. Interest accrues at the rate set in the declaration, typically the highest rate permitted by Florida usury law (currently 18 percent annual). For a unit with USD 680 monthly dues, a four-month delinquency adds USD 2,720 of dues, USD 300 of late fees, and USD 180 of interest, plus USD 800 to USD 1,500 in HOA attorney fees if a lien is recorded. Total recovery cost approximately USD 4,000.

Property taxes. Florida property taxes are billed annually in November, payable by March 31 of the following year with discounts for early payment. If unpaid by April 1, a tax certificate is issued and sold at public auction. The certificate holder earns interest (at rates that range from 5 to 18 percent), and the certificate can ripen into a tax deed within two years. For a USD 400,000 condo with an annual tax bill of USD 5,200, missing one annual cycle adds USD 260 of immediate late fees plus interest accruing at the certificate rate. The cost of recovery is low if caught within the first six months; expensive if the tax deed process advances.

Homeowner's insurance. Florida insurance has become expensive and brittle, particularly since 2022. The typical annual premium for a USD 400,000 condo ranges from USD 2,400 to USD 4,800 depending on county, age, and the SB-4D structural status of the building. The policy renews annually. Missing a renewal results in a lapse of coverage. Most Florida insurers will not reinstate after a lapse; the policy must be re-underwritten, often at higher premium or through Citizens (the state-backed insurer of last resort). A lapse during probate creates two compounded risks. First, no coverage means any loss event (hurricane, fire, water damage) is entirely on the estate. Second, the mortgage lender requires continuous coverage and can force-place coverage at premium rates 2 to 4 times higher than the original policy.

Mortgage. Most Florida mortgages contain an acceleration clause triggered by transfer of title. Death-related transfers are protected under the federal Garn-St. Germain Act of 1982, which prohibits acceleration on transfer to a surviving spouse, joint tenant, or relative who occupies the property. Acceleration for death-related transfer to non-relative heirs is technically permitted but rarely enforced. The lender's interest is in continued payment, not in foreclosure. The heirs (or PR) should notify the lender within 30 days of death, provide a death certificate, and confirm that monthly payments will continue. The lender will route subsequent statements to the PR's address or to a designated successor in interest.

4 Insurance vacancy clause and how it kills coverage

The vacancy clause exists because vacant homes statistically suffer more water-pipe failures, undetected leaks, vandalism, and theft than occupied homes. Florida insurers price the risk accordingly. The standard policy (ISO HO-3 or equivalent) excludes or limits coverage for vacancy beyond 30 to 60 consecutive days, depending on the carrier. After a Canadian owner's death, the property is by definition unoccupied unless an heir or tenant happens to be living there.

The fix is straightforward but time-sensitive. Within 30 days of death, the heirs or the family operational contact must call the insurance carrier, notify them of the death, and request either (a) a vacancy endorsement that maintains coverage at a premium adjustment, or (b) an unoccupied dwelling policy issued for the probate period. The cost of a vacancy endorsement ranges from a 10 percent premium increase to a doubling of the premium, depending on the carrier and the location. Some Florida carriers will not write a vacancy endorsement at all and require a switch to Citizens (the state-backed insurer of last resort).

The alternative is to maintain occupancy. The heirs can arrange for one heir or a family friend to live in the property part-time, which preserves the original homeowner's policy at no additional cost. Some families have one heir relocate temporarily to Florida specifically for this purpose during probate, which can save USD 2,000 to USD 5,000 of insurance premium increases over a 12-month probate period. The trade-off is the heir's time and the inconvenience.

If the family does nothing about insurance after the death, the most likely scenario is the carrier discovers the vacancy at the next claim, denies the claim citing the vacancy clause, and the heirs absorb the loss personally. This is a recurring story in Florida probate practice. The fix is so simple (one phone call within 30 days) that the failure to do it is almost always operational, not strategic.

5 Mortgage on death, the Garn-St. Germain exception

The mortgage on a Florida property usually contains a due-on-sale or due-on-transfer clause. This clause normally lets the lender accelerate the loan when title transfers. Federal preemption under the Garn-St. Germain Act, codified at 12 U.S.C. § 1701j-3, blocks acceleration for nine specific death-related transfer types, including transfer to a relative resulting from the death of a borrower and transfer to a joint tenant or surviving spouse.

For a typical Canadian inheritance scenario, the relevant Garn-St. Germain protection is paragraph (d)(5), a transfer resulting from the death of a borrower to a relative of the borrower. This protection applies to children, parents, siblings, and other relatives. It does not require the relative to occupy the property. Non-relative heirs (a friend, a non-relative beneficiary named in the will) are not protected and could face acceleration, though in practice most lenders do not enforce against this category either.

Practical steps. Within 30 days of death, the heirs or PR should send the lender a letter notifying of the death, attaching the death certificate, identifying the heirs, and confirming that mortgage payments will continue from the estate account once the PR is appointed (or from the heirs' personal funds in the interim, with reimbursement). The lender will typically respond within 2 to 4 weeks with a statement of the loan balance, payment schedule, and instructions for re-routing future correspondence. Some lenders require the heirs to submit a formal assumption application; others simply note the change in title and continue billing.

The Canadian heir who is not relocating to Florida and not assuming the mortgage long-term has a third option, refinancing or paying off the loan from the estate's other liquid assets. If the property is to be sold within 12 to 18 months as part of the probate workflow, simply continuing payments until closing is the cleanest approach. At closing, the mortgage payoff is calculated and remitted from the gross proceeds, reducing the net distribution to the heirs.

6 Tenant in place at the moment of death

Many Canadian snowbirds rent their Florida property during the summer months or year-round to offset carrying costs. If the owner dies during a tenancy, the tenant's lease survives. The death of the landlord does not terminate the lease, does not change the tenant's rent obligation, and does not authorize the heirs to enter the property at will.

What changes is the identity of the landlord. The tenant continues to pay rent, but the question of to whom the rent is paid becomes complicated until the PR is appointed. In the interim, the tenant can pay rent to an interest-bearing escrow account opened by the Florida-licensed probate attorney, or simply hold the rent in their own account pending instructions from the PR. After appointment, rent flows to the estate's bank account.

Eviction during probate is possible but constrained. The grounds must be valid under Fla. Stat. ch. 83 (non-payment of rent, violation of lease terms, end of lease without renewal). The procedure requires a Florida-licensed attorney and runs through county court. Timeline 30 to 60 days for an uncontested non-payment eviction, 90 to 120 days for a contested case. Costs USD 800 to USD 2,500 in attorney fees plus filing fees. The PR cannot self-help evict (changing locks, removing belongings) under any circumstances. Self-help eviction triggers tenant damages under Fla. Stat. § 83.67.

If the heirs intend to sell the property and the lease has a remaining term, two options. Sell with the lease in place (the buyer becomes the new landlord and inherits the lease). Or negotiate with the tenant to terminate early, typically by offering a cash incentive (often 1 to 3 months' rent). The cash incentive is paid from the estate and reduces the net distribution. Either approach is standard in Florida sales; the choice depends on the price the property can command vacant versus tenant-occupied.

7 Showings, walkthroughs, and physical access during probate

This is one of the most operationally awkward aspects of probate. The family wants to access the property, take pictures of personal items, retrieve documents from the safe, or simply visit for sentimental reasons. The probate court does not formally prohibit this, but the personal representative has fiduciary duties that include securing the estate's assets and avoiding the appearance of self-dealing.

Practical operational rules. Before appointment of the PR, the heirs should not enter the property except for emergency preservation purposes (responding to a burst pipe, securing a broken window, retrieving urgent medical or legal documents). Even then, two heirs should be present together if possible, and the entry should be documented with a photo log. After appointment of the PR, all entries should be coordinated with the PR. The PR maintains a log of entries, the purpose, and the persons present.

For real estate showings, the PR formally engages a licensed broker via a listing agreement (signed after letters of administration). The broker then conducts showings on the standard schedule. The PR receives a written notice of each showing. Heirs do not typically attend showings unless the PR specifically requests their presence.

Contractor access (for repairs, mold remediation, HVAC service) requires the PR's contract. Any contractor entering the property without a PR-signed work order creates liability for both the contractor (trespass risk) and the estate (unauthorized expenditure). The PR should maintain a written work-order file documenting every contractor visit.

8 Cash burn estimates by property type

The above are typical figures for properties owned outright (no mortgage) or financed at 60 percent loan-to-value with a 5.5 percent interest rate. The 12-month total assumes a formal ancillary administration of approximately 12 months from death to sale closing. If the property is mortgage-free, subtract the mortgage interest line. If summary administration applies (3 to 4 months), divide the 12-month figure by 3 to estimate.

A note on Florida property taxes. The county property appraiser assesses the property at just value annually on January 1. For a property owned by a deceased non-resident, no homestead exemption applies, so the full just value is taxed at the county millage rate (typically 18 to 22 mills, or 1.8 to 2.2 percent). The tax bill is mailed in November, due by March 31. Discounts apply for early payment (4 percent November, 3 percent December, 2 percent January, 1 percent February). For a probate that spans the November-to-March tax window, the family should plan to pay this lump-sum bill from estate funds or heir advances.

9 Six common mistakes that cost real money

Mistake 1, letting insurance lapse for vacancy. The single most expensive operational mistake. A four-month vacancy without endorsement during a hurricane season can leave the estate with USD 50,000 to USD 200,000 of uninsured loss from a flood, wind, or water-pipe event. Fix is one phone call to the carrier within 30 days of death.

Mistake 2, ignoring HOA arrears until a lien is recorded. A USD 4,000 lien on a USD 480,000 condo is recoverable but slows the eventual sale by 30 to 60 days and adds USD 1,500 of HOA attorney fees and recording costs. Fix is to identify the de facto family operational contact within 7 days and have that person front the HOA dues from personal funds.

Mistake 3, missing the November property tax bill. A missed property tax bill triggers a tax certificate auction in April. Once the certificate is sold to a third party, the recovery cost is the back tax plus 18 percent interest plus the certificate holder's filing fees. Fix is to set up a calendar reminder for late October to confirm the tax bill has been received and is on the family contact's radar.

Mistake 4, hiring contractors before PR appointment. Any non-emergency contractor work commissioned by heirs before letters of administration is technically unauthorized and may not be reimbursable by the estate. Worse, if the work damages the property, the heir personally absorbs liability. Fix is to defer all non-emergency work until the PR is in place, or document emergency work meticulously with photos and invoices.

Mistake 5, accepting the first realtor that calls. Florida real estate brokers monitor probate filings and contact heirs aggressively in the weeks after a death. The first broker to call is rarely the best fit for the property type or price range. Fix is to wait for letters of administration, then interview 3 to 4 brokers with experience in the specific county and price band. The PR signs the listing agreement.

Mistake 6, neglecting the SB-4D inspection report. For Florida condominiums above 3 stories or 30 years old, the 2022 SB-4D law requires structural inspections and may require special assessments for repairs. The HOA must disclose the inspection status to any prospective buyer. An estate selling without the SB-4D report up to date risks buyer withdrawal during due diligence, lost weeks, and price reductions. Fix is for the PR to request the SB-4D status from the HOA in the first month and address any deficiencies before listing.

10 Operational checklist month by month

1. Days 1-7. Identify family operational contact. Obtain death certificates (10 copies minimum, ordered from the province). Locate the Florida property deed, HOA contact, insurance policy, and mortgage statement.
2. Days 7-30. Notify HOA, insurance carrier, mortgage lender, and utility companies of the death. Request vacancy endorsement from insurance carrier. Identify Florida-licensed probate attorney for ancillary administration.
3. Month 2. Open Canadian probate. File Florida petition for ancillary administration. Begin advancing HOA, insurance, and mortgage payments from heir funds.
4. Month 3-5. Wait for letters of administration. Coordinate with HOA on outstanding special assessments and the SB-4D inspection status. Continue monthly bill payments. Document all advances with receipts.
5. Month 5-7. Once letters of administration are issued, the PR opens the estate bank account (federal EIN). Reimburse heirs for advanced expenses. Engage real estate broker if selling. Obtain date-of-death appraisal.
6. Month 7-9. Listing, showings, and offer acceptance. Maintain operational continuity. Pay the November property tax bill if applicable.
7. Month 9-11. Closing. FIRPTA withholding collected by closing agent. Net proceeds to estate account. Begin paying down remaining estate creditors.
8. Month 11-14. Final accounting, court approval, distribution to heirs. Close estate bank account. File final estate tax returns (US Form 1041 for the estate if income was generated; Canadian T1 final for the decedent and T3 for the estate trust if applicable).

11 FAQ

Can I empty the safe-deposit box before letters of administration? In Florida, a safe-deposit box held jointly with a surviving co-renter can be opened by the surviving renter to inventory contents under Fla. Stat. § 655.935, but original wills and burial instructions can be removed. A box held in the decedent's sole name requires either a court order or the PR's authority after appointment.

Can the heirs use the Florida property as a vacation home during probate? Technically the property belongs to the estate. The PR controls access. In practice, some PRs authorize family use under a documented agreement covering responsibility for utilities, insurance compliance, and damage liability. The arrangement is rare but possible.

What happens to the personal property (furniture, art, vehicles) in the house? Personal property is part of the estate inventory. The PR catalogs it during the inventory phase (typically months 3-5). Heirs cannot remove items before inventory without PR consent. After inventory, the PR distributes per the will or intestate rules.

Are utility bills suspendable during probate? Most Florida utilities (FPL, Duke Energy, water, internet) allow account closure with documentation of death, or transfer to the PR's name. Closure stops the meter but may disable HVAC, which exacerbates Florida heat and humidity damage to the unit. Maintaining utilities at low usage is usually wiser than closing entirely.

What if the property needs urgent repairs during the gap? Emergency repairs (burst pipe, broken windows, roof leak) can be authorized by heirs from personal funds for preservation. Document with photos and invoices. The PR reimburses after appointment if the work was reasonably necessary. See our ancillary probate guide for the formal procedure.

What if the HOA forecloses while we are in probate? Florida HOA foreclosure typically takes 6 to 12 months. The PR, once appointed, can pay the arrears and discharge the lien, preventing foreclosure. If the family fails to engage the Florida probate attorney quickly enough and the HOA foreclosure advances to sale, the property can be lost. This is rare but it happens, particularly for absentee Canadian families who do not know they need a Florida attorney within 30 days of death.

12 Sources and references

1. Florida Statutes, chapter 733, Probate Code, Administration of Estates. leg.state.fl.us.
2. Florida Statutes, chapter 734, Ancillary Probate Proceedings. leg.state.fl.us.
3. Florida Statutes, chapter 718, Condominiums. leg.state.fl.us.
4. Florida Statutes, chapter 720, Homeowners' Associations. leg.state.fl.us.
5. Florida Statutes, chapter 83, Landlord and Tenant Act. leg.state.fl.us.
6. Florida Statutes, § 197.432, Sale of tax certificates for unpaid taxes. leg.state.fl.us.
7. 12 U.S.C. § 1701j-3, Garn-St. Germain Depository Institutions Act of 1982. law.cornell.edu.
8. Florida Office of Insurance Regulation, 2024 homeowner's policy guidelines. floir.com.
9. Florida Bar Real Property, Probate & Trust Law Section, 2024 administration cost survey. flbar.org.
10. CRA, Income Tax Folio S6-F4-C1, Income tax consequences of death of a taxpayer. canada.ca/cra.