What conditions should you put in an offer in Ontario?

By Maria Capotorto-Chopra  ·  COO and Broker of Record

Buyers ask us this at the kitchen table, usually about an hour before the offer goes in.

Most Ontario buyers should think about three conditions: financing, a home inspection, and, for a condominium, a review of the status certificate. A condition gives you a set number of days to check something and to walk away in writing if the answer is bad. Ontario’s regulator for real estate agents advises buyers to use conditions where they can.

Below we set out what each of those three protects you from. We also cover how a condition is cleared, and what happens to your deposit when a deal falls apart.

What does a condition actually do?

A condition sets a deadline. If it is not met or waived in writing by then, the agreement ends under its own terms.

An offer with conditions is called conditional, and one with none left is called firm. Both are binding agreements. The difference is that a conditional agreement gives you a documented way to end it while the clock runs.

Clearing a condition is a paperwork step rather than a phone call. You sign either a waiver, which gives up the protection, or a notice of fulfilment, which confirms the condition was met. Once every condition is cleared, the agreement is firm.

The Real Estate Council of Ontario is the regulator for agents in this province. Its buyer’s checklist tells buyers to make an offer conditional, “if possible,” on financing, an inspection, or selling their existing home.

Each condition does carry a cost. A seller comparing two offers can weigh how many days the deal stays in limbo. That is why we go through the property first and decide which protections are worth asking for on that house.

Do you still need a financing condition if you are pre-approved?

In most cases yes, because a pre-approval only tells you what a lender might do.

The Financial Consumer Agency of Canada is direct about this on its page about getting pre-approved. It says the process “does not guarantee your approval for a mortgage.” It describes the preapproval amount as “the maximum you may get for a mortgage.” The agency adds that it “doesn’t guarantee that you’ll get a mortgage for that amount.”

The reason is the property. A pre-approval looks at you. A full approval looks at you and the home. That can mean an appraisal, which is the lender’s own estimate of what the place is worth. It can also mean a closer read of a condominium corporation’s finances, or questions about a well or a septic system. A lender can still say no at that stage.

Rate holds are the other half of it. The same agency says a pre-approval can lock in an interest rate for 60 to 130 days, depending on the lender. Fixed mortgage rates follow the bond market, so they move on their own schedule.

Give the condition enough days for your mortgage broker to get a full approval on that specific address. Three days is tight. Ask your broker what they need before you choose a number.

Is a home inspection condition worth it in a balanced market?

Usually yes, and the August figures suggest there is often time to ask for one.

Across all TRREB areas there were 4.6 months of inventory in August 2026, on the Toronto Regional Real Estate Board’s figures. Months of inventory is how long it would take to sell everything on the market at the current rate of sales. The board works it out as a trend across the past year rather than from one month alone. The common industry rule of thumb reads under about three months as favouring sellers and over about six as favouring buyers. That puts August in balanced territory.

Homes also took a little longer to sell. Across all TRREB areas, a property that sold in August 2026 had been on the market an average of 51 days. A year earlier the figure was 49 days. The board calls this property days on market, which counts the time from the first listing even if the home was relisted. That is an average for the whole region, so your neighbourhood and price range may look different.

The inspection itself is standard practice. The council calls it “one of the most common conditions in an offer to purchase a property.” It says a good inspector examines the major systems: electrical, roofing, plumbing, heating and cooling, the foundation and septic systems.

One point catches buyers out. The council also states that it “does not regulate home inspectors.” Nobody is vetting that trade for you, so ask about training, insurance and recent references, and read a sample report before you book.

What should a condominium buyer ask for?

Ask for a condition that lets your lawyer read the status certificate before the deal goes firm.

A status certificate is a package of information about the unit and the corporation that runs the building. The Condominium Authority of Ontario lists what it can hold, including the declaration, by-laws and rules, the current budget and the last audited financial statements.

It also carries a statement on the most recent reserve fund study and the state of the reserve fund. The reserve fund is the corporation’s savings account for major repairs, and a thin one is worth asking about. You will also see the common expenses for the unit and any arrears. Special assessments, insurance certificates and any outstanding legal judgment against the corporation are in there too.

Timing is where buyers get caught. The authority says anyone can request a certificate. Corporations can charge up to $100 including all applicable taxes, and they must provide it within 10 days. A five day condition does not work if nobody has ordered one yet.

So ask two questions before you write the offer. Has a certificate been ordered, and what date is on the copy you are being shown? Your lawyer will tell you whether it is recent enough for them and for your lender, and that answer varies between lawyers.

What happens to your deposit if the deal falls apart?

That depends on how the deal ended, and this is where conditions earn their keep.

If a deal ends properly under a condition, the agreement normally returns your deposit, and both sides sign a release. This is the ordinary outcome when a financing or inspection condition is not met and you end the agreement the way it allows.

Walking away from a firm deal is the different case. Your deposit sits in a real estate statutory trust account, which is a regulated account a brokerage has to keep separate from its own money. When the two sides disagree about who should get it, the brokerage cannot simply hand it back. The council says a brokerage “can only disburse the deposit” by one of two routes. The first is a mutual consent and release form signed by both the buyer and the seller. The second is “following instructions in a court order.”

In plain terms, a disputed deposit needs the seller’s signature or a judge. Both take time, and the second one takes a lawyer.

There is separate protection for a different problem. The council runs consumer deposit insurance that responds to “brokerage theft, fraud, insolvency, or misappropriation of funds.” Cover runs up to $200,000 per claim, subject to the terms of the policy. That covers a brokerage failing rather than a buyer changing their mind.

The practical rule is the one we give every buyer. Do your checking while the conditions are alive, because the day you waive them is the day the money is committed.

Writing an offer this autumn in the GTA, Oakville, Hamilton, Waterloo Region or Muskoka Lakes? Our team will go through the property with you and say which conditions earn their place. You can book a buyer consultation with our team or see who we are and where we work.

Quick Questions

How many days should a condition last in Ontario? There is no set number, because the days are negotiated into the agreement. Build in enough time for the actual work, whether that is a full mortgage approval, an inspector’s visit, or a condominium corporation’s 10 days to deliver a status certificate.

Can you back out of a firm offer in Ontario? A firm offer has no conditions left to rely on, so walking away puts you in breach of the agreement. Your deposit is not returned automatically. The Real Estate Council of Ontario says a disputed deposit needs a signed mutual release or a court order. Talk to a real estate lawyer.

What is the difference between a waiver and a notice of fulfilment? A waiver gives up the protection of a condition even though it was not satisfied. A notice of fulfilment confirms the condition was met. Both are signed documents with deadlines, and both move the agreement to firm. Your agent prepares them.

Does a mortgage pre-approval guarantee your financing in Canada? No. The Financial Consumer Agency of Canada says the process “does not guarantee your approval for a mortgage,” and that the pre-approved figure is a maximum rather than a promise. A lender can still refuse once it looks at the specific property.

Corcoran Horizon Realty

This article is general information, not tax, legal or financial advice. Rule and program details are from the Real Estate Council of Ontario, the Condominium Authority of Ontario, the Financial Consumer Agency of Canada and the Toronto Regional Real Estate Board, and are current as of October 5, 2026.