Irina Marchenkova · RE/MAX Realtron Realty
A plain-English guide to Ontario real estate clauses: how the escape clause works, financing and inspection conditions, typical timelines and sample wording.
By Irina Marchenkova, Sales Representative, RE/MAX Realtron Realty · Last updated October 2026
The clauses in an Ontario agreement of purchase and sale decide what happens if your mortgage falls through, the inspection finds a problem, or you can’t sell your current home in time. This guide explains the clauses buyers and sellers see most often, in plain English, including how the escape clause works, how long each condition usually lasts, and what to watch for.
A firm offer has no conditions: once it is accepted, the buyer is committed. A conditional offer includes one or more conditions that must be met, or waived, by set deadlines. Conditional offers protect buyers but are less attractive to sellers, so in competitive markets buyers often do their homework (pre-approval, pre-inspection) before the offer and submit it firm.
What it does: gives the buyer time to arrange a mortgage. If financing isn’t confirmed by the deadline, the buyer can cancel and get the deposit back.
Typical timeline: 5 banking days, sometimes shorter or longer. Watch for: a pre-approval is not a final approval. The lender still needs to approve the specific property, including its appraised value.
What it does: lets the buyer have the home inspected by a professional and cancel if the results aren’t satisfactory to them.
Typical timeline: 5 to 10 days. Watch for: many buyers use the inspection results to renegotiate the price or ask for repairs before waiving the condition.
What it does: makes the purchase depend on the buyer selling their current home by a certain date, so they aren’t stuck owning two homes.
Typical timeline: often 30 to 90 days. Watch for: sellers usually accept this condition only with an escape clause, explained below.
What it does: gives the buyer’s lawyer time to review the condo corporation’s status certificate: its finances, reserve fund, legal issues, rules and any special assessments.
Typical timeline: 3 to 5 days after the buyer receives the certificate. Watch for: a low reserve fund or upcoming special assessment can mean extra costs after you move in.
What it does: lets the buyer confirm they can get home insurance at a reasonable cost. This matters for older homes with knob-and-tube wiring, oil tanks or past water damage.
What it does: gives the buyer’s lawyer a few days to review the agreement itself. It is common for unusual properties, private sales and new-construction agreements.
An escape clause is added to an offer that is conditional on the sale of the buyer’s property. It lets the seller keep marketing their home while the buyer tries to sell theirs. If the seller receives another acceptable offer, the escape clause gives the first buyer a short window to remove their condition, or the deal ends.
For buyers: before relying on a sale-of-property condition, talk to your lender about bridge financing. If you can’t waive in time, you lose the house. For sellers: an escape clause keeps your options open, but agree on exactly how notice must be given and how many hours the buyer has.
Clauses are where small details have big consequences. When you buy or sell with me, we review every condition and deadline together, and your lawyer reviews the final agreement. Questions about an offer? Get in touch.
Below are plain-English examples of how common conditions read in an Ontario agreement of purchase and sale. In practice, your REALTOR® uses standard OREA clauses and tailors dates, deadlines and details to your deal, so treat these as illustrations, not wording to copy into a contract.
Example: “This offer is conditional upon the Buyer arranging, at the Buyer’s own expense, a new first mortgage satisfactory to the Buyer. Unless the Buyer gives written notice to the Seller within five banking days after acceptance that this condition is fulfilled, this offer shall be null and void and the deposit returned to the Buyer in full without deduction.”
What it means: if your financing doesn’t come through in time, you can walk away and get your deposit back. Five banking days is common, but the timeframe is negotiable.
Example: “This offer is conditional upon the inspection of the property by a home inspector at the Buyer’s expense, and the obtaining of a report satisfactory to the Buyer in the Buyer’s sole and absolute discretion, within five days of acceptance.”
What it means: you can have the home inspected and, if you’re not satisfied, cancel or renegotiate before the deadline.
Example: “This offer is conditional upon the sale of the Buyer’s property at [address] on or before [date]. The Seller may continue to offer the property for sale. If the Seller receives another acceptable offer, the Seller may give the Buyer written notice, and the Buyer will have 72 hours to waive this condition or the offer shall be null and void.”
What an escape clause means: it protects the seller. The seller keeps marketing the home; if a better offer comes along, the buyer must either firm up (usually within 48 to 72 hours) or step aside.
Example: “This offer is conditional upon the Buyer’s lawyer reviewing the status certificate and attachments and finding them satisfactory, within three business days of receipt.”
What it means: your lawyer checks the condo corporation’s finances, reserve fund, rules and any legal issues before you’re committed.
A firm offer has no conditions: once accepted, both sides are bound. In competitive markets some buyers waive conditions to win, which puts their deposit at risk if financing or the property doesn’t work out. Get your financing pre-approved and consider a pre-offer inspection before going firm.
General information only, not legal advice. Have your real estate lawyer review any agreement before you sign. Questions about an offer? Contact Irina Marchenkova or call 416-846-8064.
An escape clause is used with an offer that is conditional on the sale of the buyer's current home. The seller can keep marketing the property, and if another acceptable offer comes in, the buyer is given a short time, usually 48 to 72 hours, to remove the condition or let the deal end.
Five banking days after acceptance is common, but the timeframe is negotiable. If the buyer can't confirm financing in writing by the deadline, the offer becomes void and the deposit is returned.
Generally not without consequences. Once an offer is firm, the buyer who walks away can lose the deposit and may be sued for the seller's losses. The 10-day cooling-off period in Ontario applies only to new condominiums bought from a builder, not to resale homes.
Trusted, independent sources I recommend to my clients (links open in a new tab):
