Making an offer, and the conditions that protect you
Once you have found the home, making an offer is where things get real. The paperwork is a binding contract, the dates matter down to the minute, and the conditions you include are what keep you safe if something goes wrong. Here is each piece in plain language, so you walk in knowing exactly what you are signing.
The offer itself: the APS
When you decide to buy a home, your agent prepares your offer on a document called the Agreement of Purchase and Sale. The moment the seller signs it back and that is communicated to you, the document becomes a binding contract. It is not a friendly note or a first draft. Once both sides have agreed, you are legally committed to the terms inside it, so it is worth understanding every line before you sign.
The Agreement of Purchase and Sale, or APS, is the contract that sets the price, the dates, the deposit, and the conditions. Once it is signed by both sides, it is binding. This is exactly why a real estate lawyer should review it.
The two dates that matter most
Two dates in the APS carry more weight than any others, and mixing them up is a common source of stress. One decides whether your offer is even alive. The other is the day the home actually becomes yours.
The irrevocable date
The irrevocable date is the hard deadline for the seller to accept your offer. Think of it as the clock ticking on your offer. If that deadline passes by even a minute, your offer is void, and the seller can no longer accept it. This is why offers often carry tight timelines, especially when more than one buyer is interested.
The closing date
The closing date is the day ownership actually transfers from the seller to you. In Ontario, that transfer is registered electronically through Teraview, handled by the lawyers on both sides. That is the day you truly own the home and get the keys.
Teraview is the electronic system Ontario uses to register the change of ownership on closing day. Your lawyer files the transfer through it, which is part of why you need a real estate lawyer to close.
The deposit, and where it actually goes
When your offer is accepted, you back it up with a deposit. It is typically 2 percent to 5 percent of the price, and it is usually due quickly, most often within 24 hours of acceptance. You deliver it by bank draft or certified cheque to the listing brokerage, and it goes into the brokerage's trust account.
Here is the reassuring part. Your deposit is held in trust, which means it is not released to the seller to spend. It simply sits there safely until closing, when it is applied to your down payment. So the deposit is not an extra cost stacked on top of your down payment, it is the first piece of it.
A trust account is a separate, protected account the brokerage must keep client money in. Your deposit stays there, untouched by the seller, and is credited toward your down payment at closing.
Conditions: the clauses that protect you
Conditions are the parts of the offer that protect you, the buyer. Each one gives you a window to check something important, and if it does not work out, you can walk away. Conditions typically run 3 to 10 business days. Here are the three you will hear about most.
The financing condition
A financing condition gives you time to get a firm mortgage commitment from your lender, typically 5 to 7 business days. Even with a pre-approval, the lender still has to approve the specific home you are buying, so this window matters more than people expect.
The home inspection condition
A home inspection condition gives you time, typically 3 to 5 business days, to have a professional look the home over for problems you cannot spot on a showing, like the state of the roof, the furnace, or the wiring.
The status certificate condition, for condos
If you are buying a condo, you will want a status certificate condition. The condo corporation must provide the certificate within 10 days, and your lawyer reviews the corporation's finances and rules, so you know the building is healthy and there are no surprises waiting for you.
A status certificate is a package from the condo corporation covering its finances, its reserve fund, and its rules. Your lawyer reads it so you know what you are buying into before you commit.
Waiving conditions, always in writing
When you are satisfied with a condition, you remove it by waiving it. The rule that surprises people is this: a condition must be waived in writing. Telling your agent over the phone that you are happy does not make it official. A verbal waiver does not count. Nothing is done until it is signed.
An offer with conditions still attached is conditional. Once you waive your conditions, the deal is firm, and you are fully committed to buying.
That difference is a big one. While the deal is conditional, you have protected exits. Once it is firm, walking away can cost you your deposit, and it can also leave you liable for the seller's losses. So waive each condition only when you are genuinely ready to go through with the purchase.
Getting your deposit back is usual, but not automatic
If a condition is not met and you choose not to waive it, your deposit is normally returned to you. That is how conditions are meant to work. But there is an honest detail worth knowing before you get there.
Technically, a brokerage can only release a deposit on a signed mutual release or a court order. In plain terms, both you and the seller usually have to sign a document agreeing to release the money. So getting your deposit back is usual, but not automatic, and cooperation between the two sides matters. It is rarely a problem when a condition genuinely was not met, but it is why staying on good terms, and having a lawyer in your corner, helps.
A mutual release is a document the buyer and the seller both sign to formally end the deal and agree on where the deposit goes. Without it, or a court order, the brokerage cannot simply hand the money back.
Picture a buyer in a heated bidding war who, to win, waives the financing condition so their offer looks stronger than the rest. They win the home. Then, before closing, they lose their job. The lender will no longer approve the mortgage, and because the deal is already firm, there is no way out. They lose their $30,000 deposit, and when the seller resells the home for less, they are sued for the shortfall, ending up more than $100,000 out of pocket. The lesson is simple: conditions exist for a reason.
Before you sign
An offer is where excitement and paperwork meet, and it is easy to get swept up. Slow down at this stage. Know your two dates, keep your conditions unless you truly understand the risk of dropping them, and make sure your deposit is ready to move. It also helps to know your full closing costs before you settle on a price, and to check which first-time buyer benefits you qualify for.
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