An offer to purchase that includes one or more conditions that must be fulfilled before the deal becomes firm. Common conditions include financing approval, a satisfactory home inspection, and review of a condo's status certificate. The buyer typically has a set number of days to satisfy or waive each condition.
Why It Matters
Conditions are your safety net. They give you a legitimate exit if the inspection reveals a crumbling foundation or the bank won't lend you the money. In competitive markets, some buyers waive conditions to win -- but that's a calculated risk with real consequences.
Real-World Example
You offer $825,000 on a semi-detached in Leslieville with three conditions: financing (5 business days), home inspection (5 business days), and lawyer review (2 business days). The inspection reveals knob-and-tube wiring that will cost $12,000 to replace. You negotiate a $10,000 price reduction, the seller agrees via an amendment, you waive the condition, and the deal moves forward at $815,000.
Ontario & GTA Context
In Ontario, conditions must be clearly written into the APS using schedule clauses. RECO requires agents to explain the risks of waiving conditions to their clients. There is no statutory 'cooling off' period for resale homes in Ontario -- once conditions are waived, you are legally committed. New condo purchases under the Condominium Act have a separate 10-day rescission period.
How It Works in Practice
Work with your agent to include only the conditions you truly need -- overloading an offer with conditions makes it less competitive. Always have your mortgage pre-approval and inspector lined up before you start making offers so you can satisfy conditions quickly.
Common Questions
Can I back out of a conditional offer?▾
How many days do I get for conditions in Ontario?▾
Should I waive conditions to win a bidding war?▾
Related Guides
Related Tools
Need Guidance?
Get a second opinion on your real estate situation. No pressure, no obligation.
The RAZZ Report
Market insights and practical advice delivered to your inbox.