In short
The conditional period is usually a few business days, so book the inspector and call your lender the day your offer is accepted.
Once every condition is met or waived, the deal is firm.
How it works in Ontario
A conditional offer is an Agreement of Purchase and Sale with one or more conditions written into it. The deal is signed, but it isn't firm until each condition is fulfilled or waived by the deadline in the agreement.
Common conditions are financing, a satisfactory home inspection, a lawyer's review of a condo status certificate, and the sale of the buyer's current home. Each one has its own deadline, usually a set number of days after acceptance.
The buyer still pays the deposit, normally within 24 hours of acceptance when the offer says "upon acceptance". It sits in trust while the conditions are worked through.
Fulfilling or waiving a condition
When a condition is met, the buyer signs a notice of fulfillment. If the buyer decides to go ahead without it being met, they sign a waiver. Either way, the paperwork has to reach the seller's side before the deadline.
Standard Ontario condition wording usually says that if the buyer doesn't give that written notice in time, the agreement becomes null and void and the deposit is to be returned. Read your own clause carefully, because the wording controls.
A condition that exists for the buyer's benefit can normally be waived only by the buyer. The seller can't force it.
What if the deal ends on a condition?
If a condition isn't met and the deal ends, the agreement typically says the deposit goes back to the buyer. In practice, the brokerage holding the deposit in trust usually asks both buyer and seller to sign a mutual release before it pays the money out.
That is why some buyers ask their lawyer about adding wording that directs the deposit straight back to them if a condition fails. Talk to your lawyer before you sign.
Conditions and competition
Conditions protect the buyer, but each one adds uncertainty for the seller. In multiple offer situations, conditional offers often lose to firm ones. If you plan to remove conditions, do the work first: confirm your financing and consider a pre-offer inspection.
Common questions about conditional offer
What is a conditional offer on a house in Ontario?
A conditional offer is a signed purchase agreement that only becomes firm once specific conditions are met or waived. Typical conditions are financing, a home inspection, a status certificate review or selling your current home. If a condition isn't met by its deadline, the agreement usually ends and the deposit is meant to be returned.
How long are conditions on an offer in Ontario?
There is no fixed legal length; the deadline is whatever the buyer and seller agree to in the offer. Financing and inspection conditions often run about five business days, while a sale of property condition can run weeks. Book your inspector and lender as soon as the offer is accepted.
Do you pay a deposit on a conditional offer?
Yes, a deposit is normally paid on a conditional offer too. Under the standard Ontario form, "upon acceptance" means within 24 hours of acceptance. The deposit is held in trust and is generally returned if the deal ends because a condition isn't met, though the brokerage usually wants a signed mutual release first.
Can a seller accept another offer while mine is conditional?
A seller can keep marketing and may accept a backup offer, but your accepted agreement comes first. Some agreements include an escape clause that lets the seller give you a set time to waive your conditions or step aside. Read any escape clause closely before you sign.
Sources
General information for Ontario, updated October 2026. Not legal, tax or mortgage advice. Rules change, so confirm with your lawyer, lender or the source above before you rely on it.