An offer with no conditions attached, meaning the buyer is committing to the purchase without any escape clauses. Once the seller accepts a firm offer, both parties are legally bound to complete the transaction. There's no inspection out, no financing out -- it's a done deal.
Why It Matters
Firm offers are more attractive to sellers because they carry less risk of the deal falling through. In GTA bidding wars, a firm offer can be the difference between winning and losing. But if you haven't done your homework, going in firm can be an expensive lesson.
Real-World Example
A detached home in Riverdale is listed at $1,099,000 with an offer date set for Tuesday at 7 PM. You submit a firm offer at $1,175,000 with a $50,000 deposit and no conditions. There are six other offers, but yours wins because the seller values certainty. You had a pre-inspection done before offer night and your mortgage was already fully approved -- so going in firm was a calculated decision, not a gamble.
Ontario & GTA Context
Ontario has no cooling-off period on resale properties once a firm offer is accepted. Under TRESA, your agent must discuss the risks of submitting a firm offer before you sign. RECO guidelines require agents to document that this conversation took place. If you go firm and cannot close, the seller can sue for damages and keep your deposit.
How It Works in Practice
Before submitting a firm offer, complete as much due diligence as possible: get a pre-inspection, confirm your financing with your lender (not just a pre-approval letter), and have your lawyer review comparable sales. The goal is to remove uncertainty before you remove conditions.
Common Questions
What happens if I can't close on a firm offer?▾
Is a firm offer the same as an unconditional offer?▾
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