Offer Guide for Buyers in Ontario

Making an offer on a home is exciting—but it can also feel overwhelming. Here’s a straightforward guide to help you understand what’s in an offer, how conditions work, and the key dates to keep in mind.

1. What’s in an Offer?

An offer (Agreement of Purchase and Sale) includes:

• Price – the amount you are willing to pay.
  
  

• Deposit – shows good faith and is credited toward your purchase on closing.
  
  

• Conditions – protections that must be met before the deal is firm.
  
  

• Closing Date – the day ownership transfers to you.
  
  

• Irrevocability Period – how long your offer stays “open” for the seller to accept.
  
  

• Inclusions/Exclusions – items such as appliances, fixtures, or other property features.
  
  

2. Deposit

• Typically 5% of the purchase price in many Ontario markets, though it can vary.
  
  

• Must be delivered within 24 hours of offer acceptance (unless otherwise stated).
  
  

• Held in trust (usually by the listing brokerage) until closing.
  
  

3. Irrevocability

• When you sign an offer, you set an irrevocable period (e.g., “irrevocable by the buyer until 8:00 PM on September 25, 2025”).
  
  

• During this period, the seller can accept, reject, or counteroffer—but you cannot withdraw the offer.
  
  

• Once the irrevocable time expires, the offer dies unless extended or re-submitted.
  
  

4. Key Dates to Track

• Irrevocability Deadline – when your offer expires if not accepted.
  
  

• Conditional Period – the window of time to satisfy conditions (commonly 3–5 business days).
  
  

• Closing Date – when funds transfer, the deed changes hands, and you officially become the owner.
  
  

5. Conditions: Your Options

Conditions protect you. You can make a condition on anything you feel necessary, but the most common include:

• Financing – ensures you can secure a mortgage on the property.
  
  

• Home Inspection – allows a professional inspection for defects or repairs.
  
  

• Status Certificate Review (condos only) – lets your lawyer review condo financials and rules.
  
  

• Sale of Purchaser’s Property – makes the offer conditional on selling your current home.
  
  

How They Work

• If conditions are met: you sign a waiver and the deal becomes firm.
  
  

• If not met: you can walk away, and your deposit is returned.
  
  

• Each condition has an expiry date—if you don’t waive by then, the offer dies automatically.
  
  

6. Firm Offers

A firm offer has no conditions.

• More attractive to sellers.
  
  

• Riskier for buyers—your deposit becomes locked in, and walking away could mean losing it.
  
  

7. Offer Process (Step by Step)

1. Offer Submitted with your terms, conditions, and deposit details.
   
   

2. Seller may:
   
   

   • Accept – the deal is done (pending conditions).
     
     

   • Reject – no deal.
     
     

   • Counteroffer – changes terms and sends back.
     
     

3. Negotiations may go back and forth until agreement.
   
   

4. Once accepted:
   
   

   • Deposit delivered within 24 hours.
     
     

   • Conditions worked on (if included).
     
     

   • Lawyers/lenders get documents.
     
     

   • Closing prep begins.
     
     

8. Final Reminders

• Nothing is binding until all parties sign.
  
  

• Pay attention to dates and deadlines (deposit, irrevocability, conditions, closing).
  
  

• Always ask questions—your Realtor and lawyer are here to guide you.