You found your dream home. Your offer was accepted. Congratulations! But before you start booking inspectors and spending money, there's something you need to understand.
Just because your offer was accepted doesn't mean you should start spending money on everything at once.
Let me explain.
Recently, I was working with buyers purchasing a property that required several inspections and additional due diligence.
We had a home inspection to arrange, a septic system to examine, well water to test, and other important details to investigate.
But there was one little problem.
We hadn't received confirmation from the bank that the mortgage financing was approved.
So I asked my buyers a simple question:
Why would we spend $500–$600 on a home inspection, plus potentially hundreds more on septic and well inspections, if the bank hasn't confirmed you can actually purchase the property?
Exactly!
Now, sometimes deadlines mean we have to work on several conditions simultaneously. But whenever possible, I prefer to organize the process strategically.
Because buying a home isn't just about finding the right property.
It's about protecting your money, understanding your contractual obligations, and knowing when—and when not—to spend it.
Let's talk about the conditions you can include in an Ontario Agreement of Purchase and Sale, which ones matter most, and why the order in which you investigate them can make a big difference.
1. What Conditions Can You Include in an Ontario Agreement of Purchase and Sale?
First, let's clear up a common misunderstanding.
There isn't one universal checklist of conditions that every homebuyer must use.
An Agreement of Purchase and Sale (APS) can contain different conditions depending on the property, the buyer's circumstances, and what the seller agrees to.
Some are common. Others are very specific.
And yes, you can negotiate conditions that go well beyond financing and a home inspection.
The important thing is that the conditions are clearly written, legally appropriate, and relevant to the transaction.
The Real Estate Council of Ontario (RECO) encourages buyers to consider conditions that provide appropriate protection, including financing, inspections and selling an existing home. Real Estate Council of Ontario
Let's explore the possibilities.
A. Financial Conditions
1. Mortgage Financing Condition
Allows the buyer time to arrange satisfactory mortgage financing for the property.
2. Sale of Buyer's Existing Property Condition
Makes the purchase conditional on the buyer selling their current home under the terms specified in the agreement.
This can help buyers avoid carrying two properties when they cannot afford to do so.
3. Property Appraisal Condition
Allows the buyer to obtain a satisfactory appraisal.
This can be particularly relevant if the lender requires an appraisal or the property's purchase price is difficult to support.
4. Mortgage Insurer Approval Condition
Addresses the approval requirements of a mortgage insurer when mortgage default insurance is necessary.
5. Acceptable Home Insurance Condition
Allows the buyer to confirm that suitable insurance is available at an acceptable cost.
This can be particularly important for properties with older wiring, certain heating systems, past water damage or other insurance concerns.
6. Down Payment Funds or Gift Confirmation
A specifically drafted condition may address the verified availability of funds required for the purchase.
7. Bridge Financing Condition
May be appropriate when the buyer needs short-term financing between selling one property and purchasing another.
8. Assumption of an Existing Mortgage
Where a mortgage is potentially assumable, a condition can address obtaining the necessary lender approval.
9. Seller Take-Back Mortgage Approval
If the seller agrees to provide part of the financing, the agreement may contain conditions relating to the terms and required documentation.
10. Review of Financing for Investment Properties
For investment properties, buyers may require financing approval that accounts for anticipated rental income and lender requirements.
My advice: Being pre-approved before shopping is important, but the financing condition is where we confirm whether the actual purchase works.
We'll explore that distinction shortly.
B. Home and Property Inspection Conditions
This is where buyers sometimes discover that their dream home comes with a few surprises.
And I'm not talking about the wallpaper.
11. General Home Inspection
A professional inspection of the home's accessible systems, components and overall condition.
12. Structural Inspection
Review by an appropriate specialist or structural engineer when there are concerns involving foundations, load-bearing walls, beams or other structural components.
13. Roof Inspection
Particularly relevant for older roofing systems or properties showing signs of leaks.
14. Electrical Inspection
A specialist evaluation of wiring, electrical panels or other potential safety concerns.
15. Plumbing Inspection
Assessment of plumbing systems, drainage or suspected leaks.
16. HVAC Inspection
Review of heating, ventilation and air conditioning equipment.
17. Fireplace, Wood Stove or Chimney Inspection
May involve a qualified specialist or a WETT inspection, depending on the installation and insurer's requirements.
18. Sewer Line Inspection
A camera inspection can help identify root intrusion, blockages or damaged underground sewer lines.
19. Foundation or Basement Water Intrusion Inspection
Particularly relevant when there are signs of moisture, cracks or previous flooding.
20. Mould or Indoor Air Quality Investigation
Specialized assessment when there is evidence or reasonable concern about moisture, mould or indoor air quality.
21. Asbestos or Hazardous Materials Assessment
May be appropriate for older properties or buildings with materials that could contain asbestos.
22. Radon Testing
Allows buyers to assess radon levels. Because reliable testing often requires an extended period, timelines need careful consideration.
23. Pest or Wood-Destroying Insect Inspection
Can help identify evidence of termites, carpenter ants or other infestations.
24. Pool or Hot Tub Inspection
Evaluation of equipment, plumbing, structural condition and safety-related components.
25. Outbuilding Inspection
For garages, workshops, barns, sheds or other structures.
26. Specialist Inspection of Unique Building Systems
This could include geothermal systems, solar installations, generators, elevators or specialized heating equipment.
Important: A general home inspection does not automatically cover every system or hidden component. Additional specialists may be necessary.
C. Rural Property, Septic and Well Conditions
If you're buying a rural property in Innisfil, Oro-Medonte, Springwater, Essa, Clearview or elsewhere in Simcoe County, this section deserves special attention.
Rural properties can require considerably more investigation than a typical urban home.
27. Septic System Inspection
A qualified professional evaluates the septic system and available information about its condition.
28. Septic Pumping and Maintenance Documentation
The agreement may require the seller to arrange pumping, provide maintenance records or supply other specific septic information.
A septic pumping requirement is not a substitute for a proper septic inspection.
29. Septic Permit and Capacity Verification
Allows investigation of permits, approved design and whether the system is appropriate for the property's intended use.
30. Well Inspection
Evaluation of the well, its construction and accessible components.
31. Well Water Quality Testing
Testing for relevant contaminants, including bacteriological testing.
Additional chemical testing may be appropriate depending on location and circumstances.
32. Well Flow Rate and Recovery Testing
Helps determine whether the well can provide sufficient water for the household.
Water quality and water quantity are two different things.
33. Well Records and Permit Review
Where available, buyers can investigate well records, construction details and other documentation.
34. Private Road Maintenance Agreement Review
Important when access depends on a privately maintained road.
Who maintains it?
Who pays for snow removal?
What happens if repairs are required?
35. Legal Access Verification
Confirms whether the property has appropriate legal access.
36. Environmental Assessment
Can be particularly important for properties with historical commercial, industrial, agricultural or potentially contaminating uses.
37. Agricultural or Farm-Related Due Diligence
Depending on the property, this may involve farm leases, drainage, nutrient management issues, agricultural zoning or other specialized matters.
38. Conservation Authority and Floodplain Review
Allows the buyer to investigate applicable development restrictions, flood hazards and regulated areas.
39. Soil or Geotechnical Investigation
Potentially important when a buyer intends to construct a new building, addition or other substantial improvement.
40. Drainage and Grading Investigation
Relevant when there are concerns about standing water, drainage patterns or neighbouring properties.
These investigations can cost hundreds or thousands of dollars.
Which brings us back to my original point:
Before spending money on all of them, make sure you're approaching the conditions in a sensible order.
D. Legal, Zoning and Municipal Due Diligence Conditions
This is one category I believe buyers frequently underestimate.
Just because something already exists on a property doesn't automatically mean it was legally built or can be used the way you intend.
41. Lawyer's Review of the Agreement
Allows a lawyer to review specified legal aspects of the purchase within the agreed period.
42. Title Review
Allows investigation of ownership, registered interests and title-related concerns.
Your lawyer ordinarily conducts a title search as part of closing. A separate condition may be appropriate when an issue needs to be resolved before the purchase becomes firm.
43. Survey Review
Particularly useful when property boundaries, encroachments or proposed construction are important.
44. Zoning Verification
Confirms whether the buyer's intended use is permitted under applicable zoning rules.
45. Building Permit Verification
Allows investigation of existing structures, additions and renovations.
46. Outstanding Building Permit or Work Order Review
Can address open permits, outstanding orders or other municipal compliance concerns.
47. Secondary Suite or Apartment Legality
Important when purchasing a property with a basement apartment, converted garage or other secondary dwelling.
48. Future Construction Feasibility
For buyers intending to build a garage, workshop, garden suite, addition or other improvement.
49. Easement and Right-of-Way Review
Important when utility access, shared driveways, neighbouring rights or other easements affect the land.
50. Heritage Designation Investigation
Relevant if the property may be subject to heritage restrictions.
51. Development Charges and Municipal Fee Investigation
Particularly relevant when the buyer plans construction or redevelopment.
52. Environmental or Land-Use Restrictions
Includes investigating applicable environmental regulations, development limitations and other land-use constraints.
53. Rental, Tenancy or Occupancy Review
For tenanted properties, buyers may need to review leases, lawful rents, deposits, tenant rights and whether the intended occupancy arrangements are legally possible.
54. Municipal Property File Review
Allows investigation of municipal records relevant to the property.
55. Tax, Assessment or Special Charge Review
May be relevant where there are outstanding charges, local improvement costs or unusual assessments.
Here's a situation worth thinking about.
You purchase a beautiful rural home on a large lot.
Your plan?
Build a detached garage, maybe add a workshop and eventually put in a pool.
Sounds wonderful!
But after closing, you discover that conservation restrictions or zoning requirements prevent your plans.
Wouldn't you rather know that BEFORE the property becomes yours?
Exactly.
That's why due diligence matters.
E. Waterfront Property Conditions — Especially Important Around Lake Simcoe
Waterfront properties are one of my specialties, and they deserve their own category.
Buying waterfront isn't quite the same as buying a house in a subdivision.
You may have shoreline restrictions, dock considerations, erosion concerns and questions about ownership that simply don't arise with many inland properties.
56. Shoreline Ownership Verification
Confirms the legal extent of ownership and whether any shore road allowance or other interest affects the shoreline.
57. Shore Road Allowance Investigation
Determines whether an unopened shore road allowance exists and whether it is owned by the municipality or has been closed and conveyed.
58. Dock Permit and Compliance Investigation
Reviews whether existing docking facilities require authorizations and whether relevant approvals exist.
59. Waterfront Access Rights
Confirms whether the property includes legal waterfront access, deeded access, an easement or some other arrangement.
60. Shoreline Alteration and Conservation Restrictions
Investigates restrictions relating to shoreline work, retaining walls, vegetation removal or other alterations.
61. Floodplain and Erosion Hazard Review
Important for properties potentially affected by high water levels, flooding or shoreline erosion.
62. Boathouse Permit and Compliance Review
Determines whether the boathouse and its intended use comply with applicable rules.
63. Water Depth and Docking Suitability Investigation
Particularly relevant to buyers who own boats.
A gorgeous waterfront home doesn't necessarily mean your boat can reach the dock safely.
64. Waterfront Septic Setback and Compliance Review
Important when a septic system is near a lake, river or other sensitive area.
65. Shared Waterfront Facility Agreement Review
For properties with shared docks, beaches, private associations or common waterfront facilities.
66. Riparian Rights and Other Waterfront Title Matters
These can be complex and should be reviewed with a lawyer familiar with waterfront property.
67. Shoreline Stability or Erosion Assessment
May be appropriate when there are signs of erosion or concerns about retaining walls and shoreline protection.
68. Water Access and Navigability Investigation
Relevant where the buyer's intended boating use depends on access routes, navigability or physical conditions.
A condition should be drafted around the particular investigation rather than assuming any one approval or right automatically exists.
F. Condominium Conditions — Barrie, Friday Harbour and Beyond
Buying a condominium comes with an entirely different set of considerations.
69. Status Certificate Review
Allows the buyer's lawyer to examine the condominium corporation's financial and legal information.
70. Condominium Rules and Restrictions Review
Important for buyers concerned about pets, parking, renovations, short-term rentals or other restrictions.
71. Reserve Fund and Financial Review
Helps assess the corporation's financial position and potential future expenses.
72. Special Assessment Review
Addresses existing or anticipated special assessments where disclosed.
73. Parking and Locker Verification
Confirms the legal nature and details of parking spaces and storage lockers.
74. Exclusive-Use Common Element Verification
Useful where a terrace, garden, parking area or other space is described as exclusively available to a unit.
75. Resort or Club Fee Review
Especially relevant for resort-style communities such as Friday Harbour, where buyers should understand any applicable club, resort or other contractual fees.
76. Rental and Short-Term Rental Restriction Review
Important for buyers purchasing an investment property.
77. Litigation and Insurance Review
Allows examination of significant legal and insurance matters affecting the condominium corporation.
Did you know? Ontario condominium corporations generally must provide a status certificate within 10 days of receiving a request and payment. The statutory preparation fee cannot exceed $100, including taxes and materials. This does not necessarily include a lawyer's review fee. Condominium Authority of Ontario
G. Other Conditions Buyers Can Negotiate
Depending on the transaction, additional conditions may include:
Satisfactory review of a property's rental income and expense statements.
Review of existing leases and tenant documentation.
Verification that specified chattels or equipment are included.
Review of solar panel agreements, equipment leases or financing arrangements.
Review of rental contracts for furnaces, water heaters or other equipment.
Satisfactory review of property management or service agreements.
Verification of transferable warranties.
Review of a home business's legal use requirements.
Obtaining required permits or approvals for an intended use.
Approval from a condominium corporation or other third party, where applicable.
Seller completion of specifically identified repairs or other work.
Satisfactory review of documentation relating to previous property damage or insurance claims.
Satisfactory investigation of any material property issue specifically identified by the buyer.
Some of these are more appropriately drafted as seller representations, warranties, covenants or closing obligations, rather than buyer conditions.
That's an important distinction.
For example, if you want the seller to remove debris from the property, a properly drafted closing obligation may be more appropriate than making the entire purchase conditional on debris removal.
The goal isn't to cram 90 conditions into your offer.
The goal is to identify the protections that actually matter for the property you're buying.
And remember: the seller must agree to the proposed conditions. Adding unnecessary conditions can also make an offer less attractive.
2. In What Order Should You Fulfill Your Home Buying Conditions?
Now we're getting to what I consider one of the most important parts of the purchasing process.
The order matters because your money matters.
Here's how I generally like to approach things when the agreement, deadlines and circumstances allow it.
STEP 1: Confirm Your Mortgage Financing
Before booking several expensive inspections, I want my buyers to understand where their financing stands.
If the bank cannot approve the mortgage, spending money on every other investigation may accomplish very little.
Let's imagine you're buying a rural property in Simcoe County.
Your estimated due diligence expenses might look like this:
These are hypothetical planning figures, not verified local quotes. Actual costs vary by property, professional and scope of service.
Imagine spending almost $2,000 and then finding out your mortgage has been declined.
Ouch.
That's why I prefer to confirm financing as early as possible.
But there's an important catch.
You should not assume that all the other conditions can simply be postponed.
Every condition has its own contractual deadline.
And sometimes a lender needs an inspection, appraisal, septic report or other property information before issuing approval.
When that happens, the investigations must be coordinated.
My preferred approach
First, get the mortgage application and property documents to the lender immediately.
While the lender reviews the application, start gathering documents, booking specialists provisionally where practical, and identifying any time-sensitive investigations.
If financing is denied early, you may avoid additional expenses.
If financing looks promising but final approval depends on an appraisal or another report, prioritize what the lender requires.
And if the condition deadlines are approaching?
We may need to request an extension.
Never let a condition expire simply because you're waiting for the bank.
An extension requires agreement from the other party. The seller is not obligated to grant one.
3. Mortgage Pre-Approval vs. Final Mortgage Approval: What's the Difference?
This is a HUGE misunderstanding among homebuyers.
I often hear:
"Gemma, don't worry. I've already been pre-approved!"
Wonderful!
But let me explain why that doesn't mean your mortgage is guaranteed.
What Is a Mortgage Pre-Approval?
Before you start shopping, your mortgage broker or lender may review your:
- Income and employment
- Credit history and existing debts
- Down payment
- Financial obligations
- Estimated borrowing capacity
Based on the information available, the lender may indicate how much you could qualify to borrow.
This is incredibly helpful.
It gives you a starting budget before we start looking at properties.
But here's what many people don't realize.
Mortgage pre-approval is NOT the same as final mortgage approval.
The Financial Consumer Agency of Canada confirms that a pre-approval doesn't guarantee the lender will approve your mortgage for a specific property. Canada
What Happens After Your Offer Is Accepted?
Now the lender has something it didn't necessarily have during pre-approval:
An actual property to evaluate.
The lender may review:
- Your signed Agreement of Purchase and Sale.
- The actual purchase price.
- The property's location, type and condition.
- Your updated financial documentation.
- The property's appraised value, if required.
- Mortgage default insurance requirements, if applicable.
- Any property-specific risks or lending restrictions.
For example, imagine you've been pre-approved to buy a $700,000 home.
You find a beautiful rural property in Innisfil and negotiate a purchase price of $690,000.
Everything looks good.
Then the lender orders an appraisal.
The appraisal comes back at $650,000.
Suddenly, the lender may not be willing to advance the amount you originally expected.
You might need a larger down payment, a different financing arrangement or further negotiations.
And that can change everything.
CMHC confirms that the property's value is an important factor in determining how much mortgage financing a lender will provide. CMHC
Another important consideration
Some lenders may give a conditional mortgage approval, but still require certain documentation before the loan can be funded.
An approval with outstanding requirements isn't necessarily the same as a fully cleared mortgage.
Before removing your financing condition, you should understand what has been approved, what remains outstanding and whether the financing is satisfactory under your agreement.
Your mortgage professional should explain any remaining risks.
So when should you remove your financing condition?
Only after you have carefully reviewed the lender's approval, understand any outstanding requirements, and are satisfied you can proceed.
Once you remove the condition and the deal becomes firm, failing to obtain the funds on closing can expose you to serious financial consequences.
4. STEP 2: Review the Important Documents and Potential Deal-Breakers
While the bank is working on financing, I like to identify issues we can investigate without immediately spending large sums of money.
For example:
Buying a rural property?
Let's investigate zoning and potential conservation restrictions.
Planning to build a garage?
Let's contact the municipality to understand whether your plans may be permitted.
Buying a waterfront property?
Let's review shoreline ownership, access and relevant restrictions.
Buying a Barrie condominium?
Let's make sure the status certificate has been requested promptly.
Some preliminary information can be obtained relatively inexpensively.
However, written professional opinions, municipal searches, surveys and other detailed investigations may involve fees.
The idea is simple:
Identify the potential deal-breakers early, especially those that could make the property unsuitable for your plans.
After all, there's no sense buying a property that doesn't allow you to do the very thing you purchased it for.
5. STEP 3: Complete the Home Inspection
Once financing is sufficiently reassuring—or sooner if the deadline requires it—we need to examine the house itself.
A home inspection helps buyers better understand the property's condition.
But remember:
A home inspector cannot see through walls.
A standard inspection has limitations.
If the inspector finds structural movement, electrical concerns, water intrusion or another issue requiring specialized expertise, additional inspections may be recommended.
And depending on what we discover, buyers may want to:
- Proceed with the purchase.
- Obtain additional professional opinions.
- Negotiate repairs or a price adjustment, if the seller agrees.
- Decline to fulfill the inspection condition if the concerns genuinely make the inspection unsatisfactory under the agreement.
The available options depend on the wording of the condition and the circumstances.
6. STEP 4: Complete Septic, Well and Specialized Inspections
This is especially relevant to rural buyers around Barrie, Innisfil and Simcoe County.
A home might look beautiful.
But what about the systems you can't see?
Septic systems
An inspection may uncover concerns about the tank, drainage bed, system condition or compliance.
Repairs can be expensive.
Private wells
Buyers need to consider both water quality and quantity.
A water test that comes back acceptable for the parameters tested does not automatically mean the well supplies enough water for everyday use.
Likewise, a strong flow rate does not prove the water is safe to drink.
These are separate investigations.
Specialist inspections
Depending on the property, you may require additional assessments of foundations, pools, electrical systems, environmental concerns or outbuildings.
These inspections are not expenses I recommend skipping just to save money.
The objective is to schedule them intelligently without compromising proper due diligence.
7. STEP 5: Complete Legal and Municipal Due Diligence
This stage includes resolving any outstanding questions about the property's legal status and intended use.
But here's something important:
Legal and municipal due diligence shouldn't always wait until the end.
Some investigations require more time than a home inspection.
Your lawyer should be involved early, particularly when reviewing title, surveys, easements, property boundaries or complicated contractual provisions.
Municipal investigations may also take longer than expected.
For rural properties, I often want to know:
Can you legally use the property the way you intend?
Were additions constructed with the appropriate permits?
Is that converted garage a legally permitted dwelling?
Are there conservation restrictions?
Does the survey accurately reflect what you believe you're purchasing?
These are questions worth investigating before the agreement becomes firm.
My preferred order, summarized
8. What Happens to Your Deposit If You Don't Fulfill Your Conditions?
This is one of the biggest questions buyers ask.
Let's say you purchase a home in Barrie for $700,000.
You provide a $25,000 deposit.
Your offer includes financing and home inspection conditions.
Then your lender declines the mortgage.
Do you lose your $25,000 deposit?
Not necessarily.
In fact, if your agreement contains a properly drafted financing condition, you act in good faith, and the agreement terminates according to its terms because the condition was not satisfied, you would generally be entitled to the return of your deposit.
But there's an important difference between being entitled to the deposit and actually receiving the money.
Where Does Your Deposit Go?
In a typical Ontario resale transaction, the deposit is held in a real estate brokerage's trust account.
It doesn't simply go into the seller's personal bank account.
When the sale closes, the deposit is credited toward the purchase price.
If the agreement ends under a valid condition, the deposit will ordinarily need to be released according to the applicable legal and trust requirements.
What Is a Mutual Release?
A mutual release is a document that can formally end the parties' contractual obligations and direct how the deposit should be distributed.
However, the agreement may already have become null and void under its conditional terms.
In that situation, the parties may still need to sign a direction authorizing the brokerage to release the deposit, even though a broader release of legal claims is not necessarily required.
If the parties disagree about the deposit, the money may remain in trust until the matter is resolved through proper authorization or a court order. Ontario Real Estate Source
Here's what you need to understand.
A failed condition does not automatically mean the buyer has breached the contract.
But neither does it mean that a buyer can simply invent a reason to cancel.
Which brings us to a VERY important topic.
9. Can You Walk Away From a Conditional Offer in Ontario?
The short answer?
Potentially, yes—but you must have a legitimate contractual basis and act in good faith.
A signed Agreement of Purchase and Sale is a binding legal contract, even while conditions remain outstanding.
A condition gives you a defined contractual protection.
It does not automatically give you unlimited freedom to change your mind.
Let's look at a few examples.
Example 1: Your Financing Is Declined
You apply for mortgage financing promptly.
You provide the requested documents.
Your lender reviews the application and determines you don't qualify for satisfactory financing.
If your agreement includes an appropriate financing condition and you follow its terms, this may provide a valid basis for the agreement to terminate.
Example 2: The Home Inspection Reveals Problems
You hire a professional inspector.
The inspection identifies concerns about the foundation, roof or other property components.
After reviewing the findings, you're genuinely not satisfied with the property's condition.
Depending on the wording of the inspection condition, you may have the right not to proceed.
Example 3: The Property Cannot Be Used as Intended
You purchase a rural home because you want to build a large workshop.
Your offer includes a properly drafted condition permitting you to investigate whether that use is possible.
You discover that the necessary approvals cannot be obtained.
That may provide a valid reason not to fulfill the condition, depending on its wording.
Example 4: You Simply Change Your Mind
You sign an agreement.
Two days later, you see another house you like better.
Or perhaps you decide the original property isn't as exciting anymore.
That doesn't automatically give you the legal right to cancel your purchase.
You cannot assume that an unrelated financing or inspection condition gives you a free pass to walk away.
Ontario courts have considered these issues.
In Marshall v. Bernard Place Corp., the Ontario Court of Appeal examined an inspection condition that gave the buyer broad discretion to assess the inspection results.
The court confirmed that contractual discretion must still be exercised honestly and in good faith. The buyers were entitled to rely on their inspection condition in the circumstances of that case. CTDJ
What Does Acting in Good Faith Actually Mean?
In practical terms, buyers should:
- Make genuine efforts to satisfy their conditions.
- Provide truthful information to lenders and professionals.
- Take reasonable steps required by the agreement.
- Respect contractual deadlines.
- Base their decisions on legitimate concerns relevant to the conditions.
- Avoid using conditions dishonestly as an excuse to escape a purchase.
Good faith does not mean a buyer must accept every inspection issue or agree to unsuitable financing.
The buyer's rights depend on the specific contractual wording and circumstances.
However, conditions are protections, not loopholes.
10. What Happens If You Walk Away After the Deal Is Firm?
This is where things can become very expensive.
Once all conditions have been fulfilled or waived and the agreement is firm, the buyer is generally obligated to complete the purchase.
If the buyer fails to close without a legally valid excuse, the consequences can include:
Losing the deposit.
Being sued for damages.
Paying additional costs arising from the failed transaction.
For example, imagine you agree to purchase a property for $800,000.
The agreement becomes firm.
Then you decide you no longer want it.
The seller eventually resells the property for $750,000.
Depending on the circumstances, the seller may pursue damages arising from your breach, potentially including the $50,000 price difference and certain additional losses.
A deposit may be forfeited, and the seller's recoverable damages may exceed the deposit. The treatment of any deposit and damages depends on the contract and applicable law.
RECO warns that failing to complete a binding agreement can expose buyers to significant legal and financial consequences. Real Estate Council of Ontario
A deposit is not simply the price you pay to change your mind.
And that's why I believe buyers should understand every condition before signing their agreement.
11. Should You Waive Your Conditions to Make Your Offer More Attractive?
This is a question that comes up frequently in competitive markets.
And the answer isn't always simple.
Removing conditions can make an offer more attractive to a seller.
But it can also transfer significant risk to the buyer.
Imagine purchasing a rural property without a septic inspection.
You move in.
Then you discover the septic system needs major repairs or replacement.
Or imagine purchasing a waterfront property without investigating shoreline restrictions.
You close on the property and discover that the improvements you planned cannot be approved.
Suddenly, that condition-free offer doesn't feel like such a great idea.
Are There Alternatives?
Sometimes.
Depending on the situation, buyers may be able to:
- Arrange a pre-offer inspection.
- Obtain preliminary financing guidance.
- Review available property documents before submitting an offer.
- Negotiate a shorter condition period.
- Focus on the conditions presenting the greatest risks.
But these alternatives aren't always practical, and they don't eliminate every risk.
The objective is to submit an offer that's competitive without exposing yourself to risks you don't understand or cannot afford.
12. How Many Days Should Conditions Last in an Ontario Real Estate Offer?
There's no universal answer.
The appropriate period depends on:
- The complexity of the property.
- The lender's approval process.
- The availability of inspectors.
- Municipal response times.
- The seller's willingness to accept the proposed period.
- The investigations required.
For example, a relatively straightforward Barrie home may need fewer investigations than a rural waterfront property with a septic system, private well, multiple outbuildings and development restrictions.
A condominium purchase also requires enough time to obtain and review the status certificate.
One of the biggest mistakes buyers can make is accepting a condition period that isn't realistic for the investigations they need.
I would rather negotiate sufficient time at the beginning than discover later that we cannot complete the necessary investigations before the deadlines.
And if additional time becomes necessary, an extension must be negotiated and properly documented before the relevant deadline.
13. Frequently Asked Questions About Home Buying Conditions in Ontario
Can I put more than one condition in an offer?
Absolutely. Ontario buyers can propose multiple conditions, including financing, home inspection, septic inspection, well testing, status certificate review and municipal due diligence.
The seller must agree to the terms.
Can I include a financing condition if I'm already pre-approved?
Yes. A mortgage pre-approval doesn't guarantee financing for a specific property.
A financing condition can provide an opportunity to confirm satisfactory mortgage arrangements after your offer is accepted.
Should I get financing approval before paying for a home inspection?
When practical, I recommend addressing financing first to avoid unnecessary expenses.
However, inspection deadlines and lender requirements may mean the two processes need to happen at the same time.
Can I lose my deposit if my financing isn't approved?
If you have a properly drafted financing condition, act in good faith and comply with the agreement, you would generally be entitled to the return of your deposit when the condition cannot be satisfied.
However, the funds may remain in trust until the required direction or legal authorization is provided.
What if the seller refuses to return my deposit?
A disagreement over the deposit may require negotiation or legal proceedings.
A brokerage cannot simply decide which party deserves disputed trust funds.
Can I cancel my home purchase because I don't like the inspection report?
Possibly. It depends on the wording of the inspection condition, the findings and whether you're exercising your contractual rights honestly and in good faith.
Can I back out of a house purchase after signing in Ontario?
You may be able to terminate the agreement if a valid contractual condition is not satisfied or another legal right of termination applies.
However, signing a conditional offer does not automatically provide an unrestricted cancellation right.
What happens if I don't waive my conditions by the deadline?
Many standard buyer conditions are drafted so that the agreement becomes null and void unless the required written notice is delivered by the deadline.
But conditions aren't all drafted the same way.
The exact wording determines what happens, including whether notice is required and what obligations survive.
Can I extend my financing condition?
Yes, if the seller agrees to an extension.
Neither party should assume an extension is automatic.
Do I need a lawyer before removing my conditions?
You should involve your lawyer early whenever legal issues arise, especially for complex properties, title concerns, zoning matters or unfamiliar contractual provisions.
14. My Advice to Buyers in Barrie, Innisfil and Simcoe County
Buying a home is exciting.
I love seeing my buyers find that perfect property.
But there's something even more satisfying.
Watching my buyers get the keys knowing they've done their homework and understand what they're purchasing.
Because my job isn't simply to help you buy a house.
It's also to help you ask the right questions, organize the process, identify risks and involve the right professionals before you make a major financial commitment.
And sometimes that means having conversations that aren't particularly exciting.
Like septic systems.
Or municipal permits.
Or whether the bank will actually approve your mortgage.
Not exactly the glamorous part of real estate, I know!
But those conversations can protect you from expensive surprises.
And that's worth a lot more than a pretty kitchen.
Thinking About Buying a Home in Barrie, Innisfil or Around Lake Simcoe?
“Buying a home isn't just about knowing what conditions to include. It's about knowing which ones to investigate first, which ones protect your money, and what happens if something goes wrong.”
Before you fall in love with a property, let's make sure you understand what you're buying—and how to protect yourself.
Whether you're purchasing your first home, a rural property, a waterfront home or a condominium, every purchase comes with different considerations.
I'll help you understand which conditions may be relevant, coordinate the process with your lender and other professionals, and approach the purchase with a clear plan.
Because finding the right home is important. Buying it the right way matters just as much.
Gemma Leggett
Real Estate Broker
Barrie | Innisfil | Lake Simcoe | Simcoe County
🌐 gemmaleggett.ca
Have questions about buying a home? Contact me before you make your offer.
Disclaimer: This article is intended for general educational purposes and does not constitute legal, mortgage, engineering, environmental or other professional advice. Conditions and contractual rights depend on the precise wording of the Agreement of Purchase and Sale and the circumstances of the transaction. Buyers should consult qualified legal, mortgage, inspection and other professionals as appropriate.
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