A checklist before making an offer on a house helps Toronto buyers avoid committing to a property they cannot finance, inspect, close or comfortably live in. What to consider when making an offer on a house comes down to five practical points: your total closing budget, the property and neighbourhood, inspection risk, condominium documents where applicable, and offer terms you can actually meet.
Checklist before making an offer on a house in Toronto
Before submitting a home offer, confirm your financing, investigate the home and area, decide on protective conditions, review condominium documents if applicable, and read every term in the Agreement of Purchase and Sale (APS). The APS is the contract that can bind buyer and seller once it is accepted and all conditions are satisfied or waived.
- Know the cash and financing required to close.
- Assess the building, lot, location and future plans nearby.
- Choose whether to inspect before offering or make the offer conditional on inspection.
- For a condo, obtain and review the status certificate.
- Make the price, deposit, closing date, inclusions and conditions realistic.
Ontario buyers commonly use forms published by the Ontario Real Estate Association (OREA), but the completed APS and any schedules, amendments or counteroffers control the deal. A real estate agent can explain the offer process and representation; a buyer should also understand whether that agent represents them exclusively, represents the seller, or is providing a different permitted service arrangement under the Trust in Real Estate Services Act, 2002 (TRESA).
Registration and conduct of Ontario real estate professionals are overseen by the Real Estate Council of Ontario (RECO). For contract and closing questions, buyers looking for property lawyers near me should arrange a review early enough to understand a proposed APS before they become bound.
1. Confirm what you can afford to close
A mortgage preapproval is useful planning information, but it is not the same as final lender approval for a particular property. The lender may still review your income, debts, the property and its appraised value before advancing mortgage funds.
Set aside or account for more than the purchase price and mortgage. Your funds may need to cover:
- the APS deposit when it is due;
- the down payment required by your lender;
- Ontario land transfer tax and, for property in Toronto, Toronto land transfer tax;
- legal fees, disbursements and applicable taxes;
- title insurance if selected or required by the lender;
- moving costs, insurance, utility arrangements and any adjustments on closing.
Consider a buyer purchasing a Toronto freehold home for $950,000 with a mortgage approval based on that price. If the lender’s appraisal is lower than the agreed price, the lender may advance less than expected; the buyer may need additional cash, a different financing arrangement, or an APS financing condition that permits a timely exit if financing cannot be arranged on the stated terms.
A pre-closing budget also matters on a refinance. If ownership or borrowing plans change after purchase, our page on mortgage refinance Toronto explains the legal service involved in refinancing.
2. Check the home, lot and neighbourhood beyond the asking price
Evaluating a home means examining its condition, legal and practical use, and surroundings, not just comparing its asking price with recent sales. The key factors beyond the price tag are whether the home suits your intended use and whether visible or known risks fit your budget and tolerance.
At a viewing, make notes and ask about:
- water staining, musty odours, foundation cracking, roof condition and signs of drainage problems;
- the approximate age and maintenance history of heating, cooling, electrical and plumbing systems;
- parking, shared driveways, access, fences, apparent lot boundaries and easements;
- permits and documentation for additions, basement work, decks or major renovations;
- your intended renovations and whether zoning, heritage, conservation or permit requirements may affect them;
- noise, traffic, school routes, garbage collection, nearby construction and planned development;
- walking, cycling and driving routes, plus access to Toronto Transit Commission (TTC) service, schools and daily amenities.
For example, a buyer considering a $720,000 semi-detached house may learn that a rear addition has no permit record available and that a neighbouring site is proposed for redevelopment. Those facts do not automatically stop a purchase, but they may affect the price, inspection scope, financing, renovation plans and decision to offer.
3. Decide whether to inspect before offering or include an inspection condition
Yes, you can inspect a home before making an offer, and a buyer can also seek a condition allowing a professional home inspection after acceptance. A pre-offer visit does not replace a qualified inspection, particularly where basements, attics, roofs, systems or concealed defects are involved.
An inspection condition usually gives the buyer a defined period to obtain an inspection and decide whether it is satisfactory. It is generally an exit right if drafted and exercised properly, not a guaranteed right to make the seller complete repairs or accept a lower price.
In a competitive situation, buyers sometimes submit a firm offer without an inspection condition. That may make an offer simpler for a seller, but the buyer accepts the risk of discovering costly issues after becoming bound. A condition has a deadline and notice requirements, so do not assume a verbal concern or an incomplete inspection automatically releases the deposit.
4. Review condominium-specific risks before a condo offer
Condominium buyers should obtain and review a current status certificate before becoming firm, or make the offer conditional on satisfactory review of it. The status certificate and its attachments provide essential information about the unit and condominium corporation that is not visible during a showing.
Review or have appropriate professionals review the monthly common expenses, whether the unit is in arrears, the reserve-fund information, budget materials, insurance information, rules, planned work, special assessments and disclosed litigation or claims. The certificate may also include declarations, by-laws and rules affecting pets, parking, short-term rentals, renovations and use of the unit.
For example, a buyer offering $640,000 for a downtown condominium may find, during a five-business-day status-certificate condition, that major garage work is planned and the reserve fund is under pressure. The buyer can assess the documents, anticipated costs and condition wording before deciding whether to give notice that the condition is fulfilled or not fulfilled. Buyers weighing property types can also read about the pros and cons of buying a condo.
5. Make sure the offer terms are realistic
A workable offer states more than a price: it must address the deposit, closing date, included items, excluded items and any conditions. Read the APS and every schedule carefully because those written terms, rather than assumptions from a listing or conversation, govern the agreement.
| Amount or term | What it means | What to confirm before offering |
|---|---|---|
| Deposit | Money paid under the APS and usually held in trust by the named deposit holder. | Amount, holder, method of payment and the exact delivery deadline in the signed APS. |
| Down payment | Your contribution toward the purchase price after mortgage financing. | Lender requirements and the funds available by closing. |
| Closing funds | Funds needed to complete the transaction in addition to mortgage advances. | Taxes, legal costs, adjustments, insurance and other transaction-specific charges. |
| Closing date | The date ownership is intended to transfer and funds are exchanged through the lawyers. | Work, sale, mortgage, moving and lender timing that could prevent closing. |
There is no universal normal deposit or universal deposit deadline for every Ontario transaction. The amount and timing are negotiated and appear in the APS; a buyer must be ready to comply with the agreed wording and should obtain a receipt once the deposit is delivered to the designated holder.
Which conditions should you put in an Ontario house offer?
The appropriate conditions depend on the risks you have not yet resolved, but financing, inspection and condominium status-certificate conditions are the common protections. Each should identify a clear deadline and the notice mechanism required by the APS.
- Financing: protects a buyer who still needs lender approval on acceptable terms.
- Home inspection: gives time for a professional assessment of the property’s condition.
- Status certificate: gives a condominium buyer time to review corporation and unit information.
- Sale of the buyer’s property: may be relevant where the buyer needs sale proceeds, though its wording and seller response require careful consideration.
Waiving a condition, or allowing it to be fulfilled, can turn an offer into a firm commitment. Before signing, obtain advice on the specific condition language, deadlines and consequences; a buyer should not assume that a condition can be revived after it expires.
What a real estate lawyer checks after an offer is accepted
After acceptance, a real estate lawyer reviews the APS and amendments, investigates title and closing issues, and prepares for registration and transfer of funds. This work does not replace a home inspection or a buyer’s own assessment of the property’s condition.
The work may include title and off-title searches as appropriate, review of registered mortgages, easements and other interests, requisitions to the seller’s lawyer, review of the statement of adjustments, mortgage instructions, insurance requirements and electronic registration. The lawyer also coordinates closing funds and documents. A buyer in Durham can work with a real estate lawyer in oshawa for an Ontario purchase or sale.
A firm APS can have serious consequences if a buyer cannot close. In addition to deposit issues, the seller may pursue remedies for losses; the available remedy depends on the contract and facts. The Courts of Justice Act governs Ontario court jurisdiction and procedure, while cases such as Benedetto v. 2453912 Ontario Inc. illustrate why parties should not treat a real estate contract as casually reversible.
Questions to ask before making an offer on a house
Ask about known defects, water issues, permits and renovation records, included chattels, rental equipment, deposit delivery instructions and the seller’s preferred closing date. Also ask your agent what representation arrangement applies and whether there are competing offers or offer instructions that affect timing.
For a fuller list of realtor-focused questions, see these things to ask before buying a house. The practical next question is often when to put an offer on a house, once your documents, funds and conditions are ready.
Common offer mistakes and what to do next
Common mistakes include offering before deposit funds are available, treating a preapproval as final financing, overlooking condominium documents, missing a contractual deposit deadline and assuming a firm offer can simply be cancelled. These are among the home buyer mistakes that can create expense or dispute.
Before you sign, assemble the listing, APS draft and schedules, mortgage information, inspection or condo documents, deposit instructions and target closing date. Once an offer is accepted, send the complete signed package to your lawyer promptly, rather than waiting until the closing date is close.
FAQ about making an offer on a house
Can a seller ignore an offer?
A seller is generally not required to accept an offer, even if it matches the asking price, unless a binding agreement has already been formed. The seller may reject, counter, accept another offer or allow an offer to expire, subject to the APS terms and the obligations of registered professionals under TRESA.
What is a normal deposit on a house offer?
There is no legally fixed normal deposit for Ontario house offers. The negotiated amount should be meaningful to the transaction, available when required, and stated with the deposit holder and deadline in the APS.
Can I back out after a firm offer?
A firm accepted offer is not automatically reversible because a buyer changes their mind or financing becomes difficult. Obtain legal advice immediately if a problem arises, because the APS terms, any conditions and the facts determine the options and potential exposure.
What makes an offer strong without removing protections?
A clear price, reliable deposit arrangements, realistic closing date, limited and precise conditions, and complete paperwork can make an offer easier to assess without abandoning protections you genuinely need. For more on the legal role in the purchase, read do you need a lawyer when buying a home in Toronto?.
Speak with a Toronto real estate lawyer
Having the APS, schedules and property documents reviewed early can help you understand the obligations and deadlines attached to a Toronto home offer before they become urgent.
Call 416-747-9900 or book a consultation to discuss your matter with LD Law.