What's in an APS, how deposits work, and what happens after your offer is accepted.
In Canada, an offer to purchase a home is formalized through an Agreement of Purchase and Sale (APS). This is a legally binding contract that specifies the purchase price, closing date, deposit, conditions, and all other terms of the transaction. Once both parties sign and any conditions are met, the deal is firm.
Each province has its own standard APS form developed by the local real estate association. In Ontario, it's the OREA form; in BC, it's the BCREA Contract of Purchase and Sale. Your real estate agent will prepare the offer using this form.
The amount you're offering for the property. In competitive markets, offers often exceed the list price. Your agent will provide comparable sales data to help you determine a fair offer price.
The deposit (typically 5% of the purchase price) is paid after offer acceptance and held in trust by the listing brokerage. It forms part of your down payment at closing — it is not an extra cost, but it must be available in cash quickly (usually within 24–48 hours of acceptance). Losing your deposit is one of the consequences of breaching the contract.
The date you take possession. Most closings happen 30–90 days after offer acceptance. Your closing date must align with your lender's availability and your lawyer's schedule.
The period during which your offer cannot be withdrawn. Typically 24–48 hours. This gives the seller time to review and respond.
Conditions allow you to exit the deal if certain criteria aren't met. Common conditions in Canada include financing, home inspection, and status certificate review. See our conditional offer guide for full details.
The APS specifies what stays with the home (fixtures) and what the seller is including or excluding (chattels — like appliances, light fixtures, window coverings). Disputes over chattels are surprisingly common; ensure everything is documented.
If the seller doesn't accept your offer as written, they'll issue a counter-offer. The counter-offer may change the price, closing date, conditions, or other terms. You then have the option to accept, reject, or counter again. This back-and-forth continues until both parties agree or one party walks away.
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