Conditional Offers in Toronto: How They Work
January 22, 2026
January 22, 2026
Thinking about making an offer in Toronto and wondering what “conditional” really means? You are not alone. First‑time buyers often hear about financing, inspections, and status certificates, but the timelines and fine print can feel confusing. This guide breaks it down so you know what to expect, how long each step can take, and how to prepare your best offer. Let’s dive in.
A conditional offer is an Agreement of Purchase and Sale that only becomes firm if the stated conditions are satisfied or waived in writing within set deadlines. In Ontario, many brokerages use OREA standard forms that include condition clauses. During the condition period, you work to confirm financing, complete inspections, or review documents.
Until you remove a condition in writing, you can usually terminate if the condition is not met and recover your deposit, assuming proper wording and timing. Once you remove conditions in writing, the deal is firm. For a plain‑language overview of offers and buyer protections, see the RECO consumer guides. Industry forms are available through OREA.
Below are the conditions you will see most often in Toronto offers, what they do, and typical timelines.
A financing condition gives you time to confirm a mortgage on acceptable terms. Strong offers specify the loan amount, interest rate range, amortization, and whether the lender must be acceptable to you.
Typical timing in Toronto is 3 to 7 business days. Appraisals and underwriting can take longer depending on the lender and property. Many buyers start with a pre‑approval to keep the condition period short. For guidance on pre‑approvals and mortgage basics, visit CMHC.
Tip: Ask your agent to include appraisal needs in the clause if your lender requires one. Clear, specific wording reduces disputes later.
An inspection condition lets you hire a qualified inspector to evaluate the property. For freeholds, the scope often covers structure, roof, electrical, plumbing, HVAC, and moisture. Condo inspections focus on the interior unit and visible systems.
Most offers allow 3 to 10 days to book the inspection and review the report. You pay for the inspection. Consider adding specialty inspections for older or renovated homes if needed.
Tip: Define whether the condition is “satisfactory to the buyer.” Broader phrasing generally offers more protection.
For condo purchases, you will typically make your offer conditional on reviewing the status certificate and related condo documents. Under the Condominium Act, 1998, the condo corporation must provide the status certificate within 10 days of request. Learn more about the law in the Condominium Act, 1998 and buyer resources from the Condominium Authority of Ontario.
Buyers often set the condition to be removed within 3 to 10 days after receiving the status certificate. Your lawyer will look for reserve fund health, rules, fees, legal proceedings, and any special assessments.
Tip: Ask that your lawyer’s review be explicitly included. Lawyer‑satisfactory wording helps protect you.
An insurance condition confirms you can obtain property insurance on acceptable terms by closing. Lenders require this, and it protects you as well. The timing often matches your financing condition or final removal date.
Tip: Older or heavily renovated homes may need specialty insurance. Start early so you can remove the condition on time.
Some buyers include a short lawyer‑review condition to allow time to confirm clear title, zoning, and closing documents. Your lawyer may confirm removal of encumbrances and standard adjustments.
Tip: Keep the window realistic. Fast access to your lawyer helps you meet deadlines.
This condition makes your purchase contingent on selling your current home. It can be useful but is often viewed as weaker in competitive situations. Timelines depend on your listing plan and market conditions.
Tip: Expect sellers to prefer backup offers or ask for protections around timing.
Each condition should state a clear date and time for removal. For example, removal by 5:00 p.m. on a specific date. If a deadline is missed and no written extension is signed, the offer usually lapses and your deposit is returned, provided the clause was properly drafted as a condition precedent.
You remove a condition by delivering written notice before the deadline, usually through the agents using standard forms. After written removal, the deal is firm. If you later fail to close, your deposit can be at risk. For a buyer‑friendly overview of making offers and timelines, see the RECO consumer guides.
In competitive scenarios, sellers may prefer fewer or shorter conditions. You can ask for extensions by mutual written agreement if more time is needed.
Set yourself up to move quickly and confidently.
Realistic timing in Toronto:
Shorter condition periods can make your offer more appealing, especially in multiple‑offer situations. The trade‑off is higher risk if an appraisal, inspection, or legal review uncovers issues. Balance speed with protection, and only remove conditions once you are satisfied in writing.
For market context and trends that shape offer strategies, explore resources from TRREB.
Use precise language. Here are sample phrasings commonly seen in Ontario. Exact wording affects your rights, so have your lawyer and agent review the final clauses.
Ready to write a smart, competitive offer with the right protections for your situation? Let’s make a plan that fits your budget, timeline, and comfort level. Reach out to Sam Galloway to get personalized guidance and the latest listings.
From understanding market trends to mastering effective negotiation strategies, Sam’s sophisticated approach ensures you make informed decisions every step of the way.
