When you make an offer on a home in Canada, the offer can be "firm" (no conditions) or "conditional" (subject to one or more conditions being met within a specified time frame). If a condition is not satisfied by the deadline, the buyer can typically walk away and receive their deposit back in full.
Once all conditions are waived (satisfied or removed), the deal becomes "firm" — legally binding on both parties. At this point, you cannot back out without losing your deposit and potentially facing legal action.
The most important condition for most buyers. It gives you a specified number of business days (typically 3–5) to obtain formal mortgage approval from your lender. If the mortgage is not approved — for any reason — you can void the offer and get your deposit back.
Why it matters: Even with a pre-approval, your formal mortgage is not guaranteed until the lender conducts a full appraisal and underwrites the specific property. The property may appraise below the purchase price, or your financial situation may have changed.
Standard wording: "Subject to the buyer obtaining financing satisfactory to the buyer in the buyer's sole discretion."
Typical window: 3–5 business days
Gives you time to have a qualified home inspector examine the property. If the inspection reveals defects you consider unacceptable, you can void the offer or renegotiate.
Why it matters: A home inspection can reveal $5,000–$100,000+ in issues. This condition protects you from inheriting a money pit.
Standard wording: "Subject to the buyer obtaining, at the buyer's expense, a home inspection report satisfactory to the buyer in the buyer's sole discretion."
Typical window: 3–5 business days
Used when the buyer needs to sell their current home before they can afford the new one. Gives a specified period for the buyer to sell their current property. Less common for first-time buyers (who typically don't own), but important for move-up buyers.
Risk to seller: This condition makes sellers nervous. They may accept a lower price from a buyer without this condition. Sellers can often include an "escape clause" — if a better offer comes in, they give the original buyer 24–72 hours to either firm up or release the deal.
Typical window: 30–60 days
| Condition | Purpose | Common For |
|---|---|---|
| Condo/strata document review | Review financial statements, minutes, bylaws, reserve fund | Condo/townhouse purchases |
| Lawyer review | Buyer's lawyer reviews agreement and title | Complex properties, new construction |
| Septic inspection | Verify septic system condition and capacity | Rural properties |
| Well water test | Confirm potability and flow rate | Rural properties |
| Radon testing | Measure radon levels (especially in basements) | Older homes, basements |
| WETT inspection | Wood-burning fireplace/stove certification | Homes with wood-burning systems |
There are two ways to move past a condition:
To waive conditions, both parties sign a "waiver of conditions" document (or the buyer signs a "Notice of Fulfillment"). Your real estate agent handles this paperwork before the condition deadline.
If a condition deadline passes without waiver or voiding, the offer typically becomes null and void automatically — and your deposit is returned. However, this varies by the specific language in the offer. Always have your agent or lawyer confirm the exact terms.
In bidding war situations, sellers often prefer firm (no conditions) offers. This creates pressure on buyers to remove conditions — particularly the inspection and sometimes the financing condition. The risks of doing so:
Alternatives that let you compete while managing risk:
| Province | Standard Condition Windows | Notes |
|---|---|---|
| Ontario | 3–5 business days typical | Sellers can counter with shorter windows in hot markets |
| BC | 5–7 business days typical | 3-day rescission period adds buyer protection |
| Alberta | 5–10 business days typical | More conditional offers accepted; less bidding war pressure outside Calgary |
| Quebec | Negotiated; often 5–7 days | Civil law process; conditions work similarly |
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