Making an Offer

Most Canadian offers include conditions that must be satisfied before the deal becomes firm. The buyer has a set number of business days (typically 5–10) to satisfy each condition. Common conditions include:

• Financing condition — Gives you time (usually 5–7 business days) to secure confirmed mortgage approval from your lender. Even if you're pre-approved, lenders must approve the specific property.

• Home inspection condition — Allows you to hire a licensed home inspector before committing. If the inspection reveals major concerns, you can negotiate repairs, a price reduction, or walk away entirely.

• Status certificate condition (condos only) — Lenders require a lawyer to review the condo corporation's financials, reserve fund, and meeting minutes before approving a mortgage. Typically 10 days.

• Sale of existing home condition — Less common in competitive markets but used when you need to sell your current property first.

Once all conditions are satisfied and waived in writing, the offer becomes "firm and binding."

The deposit is a good-faith payment made when your offer is accepted (not at signing). Key facts:

• Typically 5–10% of the purchase price in most Canadian markets • In competitive markets like Toronto and Vancouver, a larger deposit signals strength • Due within 24 hours of acceptance in hot markets; sometimes within 24–48 business hours • Held in the listing brokerage's trust account • Applied towards your down payment at closing — it's not an extra cost

If you back out of a firm deal without legal grounds, you risk losing your deposit.

In competitive Canadian markets, sellers frequently receive multiple offers simultaneously. What to expect:

• Sellers set an offer date — all bids are delivered and reviewed at a specified time, often an evening after 2–3 days of showings • You typically cannot negotiate — your first offer should be your best offer • The seller may accept one offer outright, reject all offers, or (less commonly) negotiate with one bidder • Conditional offers are often at a disadvantage against unconditional offers — but waiving conditions carries real risk; only do so if you've done your due diligence in advance (had the property pre-inspected, confirmed financing) • Ask your agent about escalation clauses: "I offer $X, but will beat any competing offer by $Y up to a maximum of $Z"

Five levers you can pull to strengthen your offer:

1. Price — Offer the highest price you're comfortable with. In heated markets, offering at or above list is common. Your agent can provide comparable sales data.

2. Conditions — Fewer conditions = stronger offer. Consider getting a pre-inspection (inspect before offer day) so you can waive the inspection condition confidently.

3. Closing date — Ask the seller what date they prefer. Flexibility on closing is often appreciated and can tip a close decision.

4. Deposit size — A larger deposit (e.g. 10% vs. 5%) signals financial strength and commitment.

5. Irrevocability period — The time your offer stays open. Keep it short (6–12 hours) to create urgency.

Quebec note: Quebec uses a *promesse d'achat* (promise to purchase) instead of a standard offer. Legal counsel is strongly recommended.

BC note: British Columbia introduced a 3-business-day rescission period ("cooling off" period) for residential property purchases. Buyers who walk away during this period pay 0.25% of the purchase price.

A standard Agreement of Purchase and Sale includes:

• Legal names of buyers and sellers • Full municipal address and legal description of the property • Purchase price and deposit amount • Closing date • Chattels included / fixtures excluded (e.g. fridge, washer/dryer, light fixtures) • Conditions and their deadlines • Any seller representations or warranties

Your real estate lawyer will review the final agreement before you waive conditions or finalize a firm deal. Always have legal counsel — in Quebec, a notary handles the entire transaction.