In short
No financing condition, no inspection condition, nothing to walk away on.
It's strong in a bidding war, but only if you've done your homework first.
How it works in Ontario
A firm offer has no conditions. Once the seller accepts it and the acceptance is communicated, both sides are bound by the Agreement of Purchase and Sale.
A conditional deal also becomes firm once every condition is fulfilled or waived. From that point the two situations are the same: the property is sold, subject only to closing.
Is there a cooling-off period?
For resale homes in Ontario, no. There is no general right to change your mind after a firm agreement.
The main exception is a new condominium bought from the builder. The Condominium Act gives buyers 10 days to rescind, starting from the later of receiving the signed agreement and the required disclosure documents.
What happens if a buyer backs out of a firm deal?
A buyer who doesn't close without a valid legal reason risks losing the deposit. The seller may also claim further losses, for example if the home later sells for less or the seller faces extra costs.
If you are unsure whether you can close, call your lawyer right away. Don't wait for closing day.
Before you go firm
A firm offer can win in a bidding war because the seller gets certainty. It also moves every risk onto you.
Before you write one, get your financing confirmed in writing, consider a pre-offer inspection, and for a condo, have your lawyer read the status certificate. Make sure your deposit funds can move within 24 hours.
If anything about the property worries you, raise it before you sign. Once the deal is firm, you have far less room to negotiate.
Firm isn't the same as closed
Between going firm and closing day, the buyer's lawyer still searches title and can raise legal problems with the seller's lawyer. That process deals with defects in the property's title. It isn't a way out if you simply change your mind.
Use the time to finalize your mortgage, arrange home insurance, which lenders require before they release funds, and book your final walk-through.
Common questions about firm offer
Is a firm offer legally binding in Ontario?
Yes, once a firm offer is accepted, it is a binding contract for both buyer and seller. There are no conditions left to rely on. If either side fails to close without a valid legal reason, the other side may have claims for the deposit and further losses.
Can you back out of a firm offer in Ontario?
Generally no, not without consequences. Resale homes have no cooling-off period, so a buyer who walks away can lose the deposit and may be sued for the seller's losses. New condos bought from a builder are different: buyers get a 10-day rescission period under the Condominium Act.
Why do sellers prefer firm offers?
Sellers prefer firm offers because the sale is certain from the moment of acceptance. A conditional offer leaves the deal open for days while the buyer checks financing or inspects. In competitive situations, a firm offer can beat a slightly higher conditional one.
What should I do before making a firm offer?
Confirm your financing in writing before you sign. Many buyers also book a pre-offer inspection, review the status certificate with a lawyer for a condo, and make sure the deposit can be delivered within 24 hours. Ask your lawyer if anything in the agreement is unclear.
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.