Key takeaways
- A condition makes your agreement subject to a stated requirement, but it only protects you as far as its wording goes — the deadline, the standard, and the waiver language all matter.
- If a condition isn’t met, whether you can end the deal depends on the clause, good-faith compliance and proper notice — and what happens to the deposit is a separate question again, usually needing a mutual release or a court order.
- The most common conditions are financing, home inspection, status certificate review, lawyer review, and sometimes the sale of your current home.
- A firm (no-condition) offer is more competitive but carries more risk, so weigh the trade-off carefully with your lawyer and agent.
1. What does it mean to put a condition in my offer?
A condition makes your agreement of purchase and sale “subject to” a stated requirement being met before the deal becomes firm. Until then, the sale is conditional.
Think of a condition as a checkpoint. You agree to buy the home, but only if a specific thing happens first — for example, your financing comes through, or an inspection turns up nothing that changes your mind. If the requirement is satisfied (or you choose to waive it), the deal moves forward and becomes firm.
The key point that surprises many buyers is that a condition protects you only as far as its exact wording goes. Two conditions that sound similar can behave very differently depending on who benefits from them, whether the standard is subjective (“satisfactory to the buyer in the buyer’s sole discretion”) or objective, and what notice you have to give and by when.
Because of this, conditions are not standard, off-the-shelf commodities. Every clause has moving parts:
- The beneficiary — usually the buyer, but it should say so clearly.
- The standard — subjective (up to you) or objective (a reasonable measure).
- Fulfilment or waiver language — how the condition is met or removed.
- The deadline — the exact date and time by which you must act.
Missing a deadline or giving notice the wrong way can undo the protection you thought you had. That’s why it’s worth having your own lawyer draft or review each condition for your specific transaction.
2. What are the most common conditions buyers use?
Most residential offers in Ontario include one or more familiar conditions, chosen to match the buyer’s situation and the property.
Each one buys you time and a defined way to confirm that a specific part of the purchase works for you before you’re locked in. Here are the ones you’ll see most often:
- Financing — gives you time to confirm your lender will actually fund the mortgage on this property.
- Home inspection — lets you have the home professionally assessed for its condition.
- Status certificate review (for condos) — gives you and your lawyer time to review the condo corporation’s finances, rules, and reserve fund.
- Lawyer review — lets your lawyer review the agreement itself before it becomes firm.
- Sale of the buyer’s current home — sometimes used when you need to sell your existing property to complete the purchase.
Which conditions make sense — and how they’re worded — depends on the property, the market, and your circumstances. A condo buyer will want a status certificate condition; a first-time buyer relying on a mortgage will almost always want financing. Your lawyer and agent can help you decide which to include and how to frame them.
3. If a condition isn’t met, do I automatically get my deposit back?
Not automatically. Whether you can end the deal and what happens to your deposit both depend on the wording of the clause and how you’ve handled it.
Whether you’re entitled to terminate depends on the condition’s wording, on whether you complied in good faith, and on whether you gave proper notice within the deadline. The standard of satisfaction matters here. Some clauses are subjective — satisfactory to the buyer in the buyer’s sole and absolute discretion. Others set an objective or reasonableness standard, and many sit somewhere in between. Ontario courts have generally expected a party relying on a condition to act honestly and make reasonable efforts to satisfy it. That expectation bites hardest on a financing condition, where a buyer is normally expected to actually apply for the mortgage. A buyer who never applies and then says financing failed is on weak ground.
The deposit is a separate question again. Even where you’re entitled to end the deal, the deposit is not always returned automatically or immediately returned automatically or immediately. Releasing it often requires a mutual release signed by both parties — and if there’s a dispute over who should get it, releasing the funds may require a court order.
In short, conditions are a real and valuable protection, but they’re not a guaranteed instant refund. Following the clause’s requirements carefully — and getting legal advice if a condition can’t be met — puts you in the strongest position.
4. How does a lawyer-review condition work?
A lawyer-review condition normally creates an agreement that is binding but conditional. The deal exists and both sides are committed, but it stays conditional until the lawyer-review condition is fulfilled, waived, or expires under its own terms. What happens on expiry without notice is controlled entirely by the clause: depending on the drafting, the agreement may terminate, or it may become firm.
This can be reassuring: it gives your lawyer a defined window to look over the agreement before it becomes fully firm. But it doesn’t mean you’re free to change your mind for any reason — the scope of the review, the standard that applies, and the deadline are all set by how the clause is written.
Because the clause governs everything, it’s worth having your lawyer involved in the wording, not just the review. That way the protection matches what you actually expect it to do.
5. Can I renegotiate after a home inspection?
You can ask, but you can’t demand. Renegotiating after an inspection is not a remedy you can impose on your own — the seller has to agree to any change.
If an inspection turns up issues, a buyer will sometimes want a lower price or repairs before closing. Any such change is an amendment to the agreement, and an amendment needs both parties to sign off. The seller may agree, may counter, or may decline entirely.
What the inspection condition itself gives you is the ability to be satisfied (or not) with the home’s condition, within the terms of the clause. Whether that translates into a price reduction or repairs is a matter of negotiation, not a right. Your lawyer can help you understand your options if an inspection raises concerns.
6. Should I ever make an offer with no conditions?
Sometimes buyers make a “firm” offer with no conditions to stand out in a competitive market. It’s a stronger, more attractive offer to a seller — but it’s also riskier for you.
With no conditions, there’s no built-in checkpoint for financing, inspection, or legal review. If your financing falls through or the home has a hidden problem, you may still be bound to complete the purchase, with your deposit and more potentially at stake.
Whether a firm offer is worth it depends on how confident you are about your financing, what you already know about the property, and how competitive the market is. This is a decision to make with clear-eyed advice from your lawyer and agent — not one to make in a rush.