Offer conditions are clauses you add to a purchase offer that must be satisfied before the deal becomes final. In Ontario, the most common are financing, home inspection, status certificate review (for condos), and sale of your current home. Each gives you a set number of days to check something, and a way out (with your deposit back) if it does not work.
Think of conditions as your safety net. They let you sign an offer while still confirming the things you could not fully check beforehand. When you waive or remove a condition, you give up that protection, so it is worth understanding exactly what each one does before you decide to keep it or drop it.
What is an offer condition in Ontario?
A condition (sometimes called a "conditional clause" or "subject-to" clause) is written into the Agreement of Purchase and Sale (OREA Form 100). It says the deal only goes ahead if a specific thing happens by a specific date. If it does not, and you follow the clause correctly, you can walk away and get your deposit back.
While your conditions are still open, the offer is "conditional." Once every condition is met or removed, the offer becomes "firm," which means it is binding on both sides. Understanding this shift is a big part of learning how to make an offer in Ontario.
Conditions are for your benefit as the buyer, so you are usually the one who decides whether they are satisfied. That is why the wording matters, and why it should be drafted carefully in the Agreement of Purchase and Sale.
What are the main offer conditions to know?
Most Ontario buyers deal with four common conditions. You do not always need all of them, and some depend on the property type.
Financing condition
This gives you time (often a few business days) to confirm your lender will actually fund the mortgage for this specific property. Even with a mortgage pre-approval, a lender still reviews the home itself, including its appraised value. A financing condition protects you if the loan falls through.
Home inspection condition
This lets a professional inspector examine the property for issues like the roof, foundation, wiring, plumbing, and moisture. If the inspection turns up something serious, you can walk away, or sometimes go back and renegotiate. It protects you from expensive surprises after closing.
Status certificate condition (condos only)
If you are buying a condo, this condition lets you (and ideally a lawyer) review the status certificate. That package shows the condo corporation's finances, reserve fund, rules, and any special assessments or lawsuits. It protects you from inheriting a building's financial problems.