Making an offer on a home is the step that creates the legal contract. The Agreement of Purchase and Sale (APS) is a binding contract, and the terms you include — price, conditions, deposit, closing date — determine your rights, risks, and negotiating power. This guide covers what goes into a Canadian offer, the protections available, and what happens at each stage.
Anatomy of an Offer (Agreement of Purchase and Sale)
| Section | What It Contains |
|---|---|
| Parties | Legal names of buyer(s) and seller(s) |
| Property | Legal address, lot and plan number, land registry description |
| Purchase price | Your offered price |
| Deposit | Amount, when it is due, and who holds it in trust |
| Irrevocability | How long the seller has to accept, reject, or counter your offer |
| Closing date | The date title transfers and you get the keys |
| Conditions | Financing, inspection, status certificate, sale of property — each with a deadline |
| Chattels included | Moveable items included (appliances, window coverings, light fixtures) |
| Fixtures excluded | Attached items the seller is taking (specific light fixtures, shelving, etc.) |
| Rental items | Hot water tank, furnace, security system rentals that the buyer assumes |
| Additional terms | Any negotiated terms (seller to do specific repairs, buyer to assume tenant leases, etc.) |
| Representations and warranties | Seller warrants certain facts (e.g., no urea formaldehyde insulation, no knowledge of environmental issues) |
| Schedules | Additional pages (Schedule A or B) with detailed clauses |
Types of Offers
| Type | Definition | When it’s used |
|---|---|---|
| Conditional offer | Includes conditions (financing, inspection, etc.) that must be met before the deal is firm | Most transactions; the buyer can exit if a condition isn’t met |
| Firm offer (no conditions) | No conditions — the deal is binding immediately upon acceptance | Mostly competitive bidding wars; the buyer carries the risk |
| Pre-emptive (bully) offer | Submitted before the seller’s scheduled offer date | When you want to secure the property before competing offers come in |
| Multiple offers | Seller receives more than one offer simultaneously | Your agent advises on strategy; typically requires a stronger offer |
| Counter-offer | Seller changes the terms and sends back their own offer for your acceptance | Normal negotiation — can go back and forth |
| Back-up offer | Your offer is accepted contingent on the first-place offer falling through | Low-risk position; you may or may not get the property |
Key Conditions Explained
Financing Condition
| Detail | Standard Practice |
|---|---|
| What it says | “This offer is conditional upon the buyer arranging satisfactory financing” |
| Typical deadline | 5–10 business days after acceptance |
| What you need to do | Finalize mortgage approval with your lender within the deadline |
| If not met | The condition isn’t waived by the deadline; the deal ends and the deposit is returned under a mutual release |
| If met | You sign a waiver; the condition is removed; deal becomes firm on this point |
| Risk of waiving | If your financing falls through after waiving, you are legally committed to close |
Inspection Condition
| Detail | Standard Practice |
|---|---|
| What it says | “This offer is conditional upon the buyer obtaining a satisfactory home inspection” |
| Typical deadline | 5–7 business days after acceptance |
| What you need to do | Schedule and complete a home inspection; review the report |
| If issues found | Negotiate repairs, price reduction, or credit — or walk away |
| If satisfied | Sign the waiver; condition removed |
| Tip | Book the inspector before making the offer so they can inspect immediately upon acceptance |
Status Certificate Condition (Condos)
| Detail | Standard Practice |
|---|---|
| What it says | “This offer is conditional upon the buyer’s lawyer reviewing the status certificate and finding it satisfactory” |
| Typical deadline | 5–10 business days |
| What the lawyer reviews | Reserve fund study, financial statements, meeting minutes, bylaws, rules, insurance certificate, any pending litigation or special assessments |
| Red flags | Low reserve fund, upcoming special assessment, active litigation, rental restrictions |
Sale of Buyer’s Property Condition
| Detail | Standard Practice |
|---|---|
| What it says | “This offer is conditional upon the buyer selling their existing property” |
| Typical deadline | 30–90 days (negotiated) |
| How it works | If you don’t sell within the deadline, you can walk away |
| Seller’s escape clause | Many sellers include a 48–72 hour “escape clause” — if they receive another offer, they give you 48–72 hours to waive the condition or lose the deal |
| Alternatives | A bridge loan, or selling first, avoids this condition (many sellers won’t accept it) |
The Deposit
| Aspect | Details |
|---|---|
| Typical amount | 1–5% of purchase price |
| When due | Often within 24 hours of acceptance, by the payment method the agreement allows |
| Held by | Listing brokerage’s trust account or seller’s lawyer |
| Applied at closing | Applied against the purchase price |
| If deal completes | Part of your total payment |
| If you walk away (conditions not met) | Returned, once both parties sign a release |
| If you walk away (conditions waived / firm offer) | Seller can claim the deposit and sue for additional losses; the trust holder usually releases it only on both parties’ signed direction or a court order |
Deposit Strategy
| Market Conditions | Common deposit | Why |
|---|---|---|
| Buyer’s market (low competition) | 1–2% | Lower risk; less cash tied up |
| Balanced market | 2–3% | Shows seriousness without overcommitting |
| Seller’s market (high competition) | 5%+ | Demonstrates strong commitment; makes your offer stand out |
| Multiple competing offers | 5%+ | Common in bidding wars |
Closing Date Strategy
| Factor | Guidance |
|---|---|
| Standard closing | 30–90 days from acceptance |
| Seller’s preferred closing | Ask the listing agent — matching the seller’s preferred date can win you the deal |
| Short closing (15–30 days) | Aggressive — may appeal to motivated sellers; hard to arrange financing and inspections |
| Long closing (90–120 days) | Gives you time; seller may prefer if they haven’t bought their next home |
| Closing day of the week | Many buyers avoid Fridays (if anything goes wrong, offices are closed for the weekend) |
| Closing near month-end | More closings happening = busier lawyers and lenders = higher risk of delay |
Offer Strategy for Different Scenarios
Buyer’s Market (More Supply Than Demand)
| Strategy | Details |
|---|---|
| Offer below asking | Some buyers start 5–10% below asking |
| Include conditions | Less pressure to remove them |
| Longer irrevocability | Give the seller more time to consider |
| Negotiate inclusions | Ask for appliances, window coverings, or other chattels |
| Ask for closing cost credit | Seller may agree to contribute $2,000–$5,000 toward your closing costs |
Seller’s Market / Multiple Offers
| Strategy | Details |
|---|---|
| Offer at or above asking | Data-driven — base your price on recent comparable sales, not the asking price |
| Minimize conditions | A pre-approval letter and a pre-offer inspection let a buyer submit with fewer conditions |
| Larger deposit | 5%+ signals commitment |
| Flexible closing date | Match the seller’s preference |
| Clean offer | Simple language; no unusual requests |
| Escalation clause (use with caution) | “I will beat the highest offer by $X up to a maximum of $Y” — not used everywhere; some sellers’ agents don’t accept them |
Pre-Emptive (Bully) Offer
| Aspect | Details |
|---|---|
| When to use | Before the seller’s scheduled offer date; when you believe the property is underpriced or will receive many offers |
| Typical strategy | Strong price (above asking), large deposit, fewer conditions, seller’s preferred closing date |
| Risk | Overpaying because you haven’t seen competing offers |
| Seller’s options | Accept, reject, or ignore your offer and wait for offer night |
After the Offer Is Accepted
| Step | Timeline | Action |
|---|---|---|
| 1. Deposit | Within 24 hours | Deliver certified cheque or bank draft to the trust holder |
| 2. Mortgage application | Immediately | Submit formal application if not already done; provide APS to lender |
| 3. Home inspection | Within 3–5 days | Schedule and complete; review report |
| 4. Appraisal | Lender-ordered (1–2 weeks) | Lender sends appraiser to confirm property value supports the mortgage |
| 5. Condition waiver/fulfilment | By each condition deadline | Sign waiver forms through your agent |
| 6. Lawyer engagement | Immediately | Share APS with your real estate lawyer; they begin title search |
| 7. Insurance | Before closing | Arrange home insurance — lender requires proof before funding the mortgage |
| 8. Final walkthrough | Day of or day before closing | Verify the property is in the agreed condition; all included chattels are present |
| 9. Signing with lawyer | 1–5 days before closing | Sign mortgage and transfer documents; provide closing funds |
| 10. Closing day | Closing date | Lawyer registers transfer; funds are released; you get the keys |
Provincial Differences
| Province | Offer / Contract Name | Key Differences |
|---|---|---|
| Ontario | Agreement of Purchase and Sale (OREA form) | Standard form used by most agents; very detailed conditions schedule |
| BC | Contract of Purchase and Sale | Home buyer rescission period of 3 business days (the buyer pays the seller 0.25% of the price to rescind); subjects (conditions) are standard |
| Alberta | Residential Purchase Contract (AREA form) | Simpler form; no land transfer tax; conditions commonly included |
| Quebec | Promise to Purchase | Notary-based system; different legal framework under the Civil Code |
| Manitoba | Offer to Purchase | Standard provincial form; similar to the Ontario process |
| Saskatchewan | Standard provincial form | Similar to Alberta |
| Atlantic provinces | Agreement of Purchase and Sale (names vary) | Each province’s real estate association has its own form; processes similar to Ontario |
Common Offer Mistakes
| Mistake | Consequence | Prevention |
|---|---|---|
| Waiving all conditions in a bidding war | No protection if financing falls through or major defects found | Do a pre-offer inspection; get a firm pre-approval |
| Not including specific chattels in writing | Seller takes the dishwasher, curtains, or shed you expected to keep | List every item you expect included in the APS |
| Setting condition deadlines too short | Not enough time to arrange inspection or financing | 5–10 business days is common |
| Offering based on asking price, not comparables | Overpaying or underbidding | Recent sold prices in the neighbourhood |
| No lawyer before submitting the offer | Missed legal issues in the APS | A lawyer lined up before making an offer |
| Submitting without pre-approval | Financing condition may not be met; waste of everyone’s time | A pre-approval before house shopping |
| Missing the irrevocability deadline | Offer expires before seller responds | A realistic window (often 12–24 hours) |
How to set your offer price
In a balanced or buyer’s market
| Strategy | When to Use |
|---|---|
| 5–10% below asking | Home has been listed 30+ days, minimal interest, no competing offers |
| At asking price | Fairly priced based on comparables, some interest but no bidding war expected |
| Asking price with conditions | Conditions keep the buyer’s exits while the price appeals to the seller |
| Asking price minus seller credits | Ask for closing cost credits or included repairs instead of a lower price |
In a seller’s market (multiple offers)
| Strategy | When to Use |
|---|---|
| At or slightly above asking | Low competition (2–3 offers), asking price seems fair |
| 5–15% above asking | High competition, underpriced listing strategy, 5+ competing offers |
| Your maximum with strong terms | After comparables analysis, best offer you can make while still being comfortable with the price |
| Clean offer (minimal conditions) | Only if you have safeguards in place (pre-inspection, strong pre-approval, cash reserves) |
A winning bid still has to fit the budget: the payment on that price runs for the whole amortization, often 25 years.
Quebec: the promise to purchase
Quebec’s real estate process is distinct from the rest of Canada:
| Feature | Rest of Canada (APS) | Quebec (Promise to Purchase) |
|---|---|---|
| Legal system | Common law | Civil law (Civil Code of Quebec) |
| Standard form | APS / Offer to Purchase | Promesse d’achat |
| Closing handled by | Lawyer (or a notary in BC) | Notary (a mortgage (hypothec) must be a notarial deed) |
| Land registration | Land Titles / Registry Office | Quebec Land Register |
| Transfer tax | Land Transfer Tax | Welcome Tax (droits de mutation) |
If the other party breaches the agreement
If the seller breaches (refuses to close):
- The buyer can sue for specific performance (forcing the sale) or damages
- The buyer may also recover legal costs, moving expenses, and the difference in price if they buy elsewhere at a higher cost
If the buyer breaches (backs out without valid condition):
- The seller can claim the deposit
- The seller can sue for additional damages (carrying costs, relisting costs, price difference if sold for less)
- Many disputes settle on the deposit rather than going to court
Related Resources
Sources
The figures and rules on this page come from these sources, last checked against them between September 25, 2026 and September 29, 2026. How we check facts.
- BC Laws: Home Buyer Rescission Period Regulation
- BC Laws: Property Law Act