Key takeaways
- Your deposit is usually due within about a day of acceptance, so have the funds ready before you offer.
- Conditions protect you, but they can make your offer less attractive in a competitive situation.
- Waiving a condition is a serious risk; get advice first.
- In Ontario, your lawyer handles closing. You usually sign beforehand and pick up keys on closing day.
Understanding Offer Conditions
A condition is a term that must be met before your offer becomes firm. Each one has a deadline. If a condition isn’t met or waived in time, the deal generally ends, according to the wording.
A financing condition gives you time to get final mortgage approval. An inspection condition lets a professional check the home. If problems turn up, you can negotiate or walk away, depending on the wording. For a resale condo, a status certificate condition gives your lawyer time to review the corporation’s finances and rules.
If you already own a home, you could also ask for a condition on selling it.
Conditions protect you, but too many can make an offer less attractive, especially when others are competing. Talk through each one with your agent and lawyer before you decide to remove it.
Common offer conditions
Conditional and firm
VS
Negotiation Strategies
Good negotiating starts before you make an offer. Know your budget and your limit, and review recent sales of similar homes with your agent. That gives you a fair number to work from.
Try to learn what matters to the seller. A quick closing, a longer closing or a clean offer may matter as much as price.
Stay respectful and clear. Expect a counteroffer, and decide in advance what you can be flexible on and what you can’t.
Your agent can help you respond and keep you within your budget. Remember that walking away is always an option.
Closing week
-
Book the lawyerEarly, with your agreement
-
Arrange insuranceCoverage starts on closing
-
Review and signMortgage and final figures
-
Send fundsFollow your lawyer’s instructions safely
-
RegisterLawyers complete the deal
-
Get keysAs arranged
Multiple offers
What it isSeveral buyers compete for the same home.
Why it mattersYou may not get a second chance to improve your offer.
What to doDecide your limit before the offer date.
Closing the Deal
Once your offer is firm, the work moves to your lender and lawyer. Pre-approval isn’t final approval, so send your lender everything they ask for, well before your deadline.
If your agreement allows it, you may have a final visit before closing, to confirm the home’s condition and that agreed repairs are complete and included items remain. Ask your agent to write in any visits you want when the offer is prepared.
A few days before closing, your lawyer will review the final documents with you, including the mortgage paperwork and a statement of adjustments. That statement shows amounts such as prepaid property tax or condo fees and the balance you owe.
You usually don’t attend a closing meeting. You sign with your lawyer beforehand and provide the balance of your funds. On closing day, the lawyers complete the exchange and your lawyer registers the transfer electronically. Keep your phone nearby, because timing can run into the afternoon. Your agent or lawyer will tell you how to get the keys.
Visual guide · First home
Keep the deal on track
Statement of adjustments
What it isA summary of who owes what on closing day.
Why it mattersIt shares prepaid costs, such as property tax, between you and the seller.
What to doReview it with your lawyer before you pay your balance.