Making an offer is one of the most exciting — and stressful — steps in buying a home in Canada. The formal document you submit is legally binding once accepted. Understanding every element of an offer before you sign protects your interests and improves your chances of success.
In Canada, a purchase offer is submitted as an Agreement of Purchase and Sale (APS). This is a legally binding contract that, once signed by both parties, obligates the buyer to buy and the seller to sell — subject to any conditions included. Each province has its own standard form, typically prepared by your real estate agent.
The amount you are offering to pay. This should be informed by recent comparable sales in the area, market conditions, the home's condition, and any competing interest. Your agent should provide a comparative market analysis (CMA) before you commit to a price.
A good faith deposit that demonstrates you are serious. In Canada, deposits are typically 2% to 5% of the purchase price, though this varies by market. In Toronto, deposits of 5% are common. The deposit is submitted after offer acceptance — often within 24 hours. It is held in trust by the listing brokerage and applied to your down payment at closing.
If you back out without a legal condition to rely on, you may lose your deposit and potentially be sued for additional damages.
The date on which ownership legally transfers from seller to buyer and you receive the keys. Closing dates are negotiable. Sellers typically prefer dates that align with their needs (move-out timeline, mortgage arrangements). Common lead times are 30 to 90 days, though faster closes are possible if all parties are prepared.
Conditions protect the buyer by allowing them to exit the deal — with deposit returned — if specific criteria are not met. Common conditions include:
Your offer has an expiry time — typically 24 to 48 hours from submission. The seller must accept, reject, or counter before this time or the offer becomes void. In competitive markets, sellers may set a presentation date on which all offers are reviewed simultaneously.
Your offer specifies what stays with the home. Standard inclusions are typically negotiated but may include:
If the seller is taking something you want included, negotiate it explicitly in the offer. Once the deal is done, it is very difficult to add inclusions.
In a balanced or buyer's market, you submit an offer and the seller responds with acceptance, rejection, or a counteroffer. Negotiations may go back and forth several rounds (counters and signing-backs) until both parties agree or someone walks away.
In hot markets, sellers set an offer presentation date, receive multiple offers at once, and typically accept the best one outright. In this scenario, asking the seller to counter or sign back is uncommon — you usually need your best offer the first time. See our bidding war guide for strategies.
A counteroffer is a new offer from the seller that supersedes your original. When a seller counters, your original offer is no longer valid — you cannot go back to your original terms. Always read a counteroffer carefully and treat it as a fresh negotiation.
Price is not the only thing sellers care about. In many situations, a lower offer with fewer conditions, a preferred closing date, or a quick deposit submission may be more appealing than a higher offer with many conditions and a long closing. Ask your agent what matters most to this specific seller.
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