A property marked “Sold Conditional” usually means the buyer and seller have accepted an Agreement of Purchase and Sale, but one or more conditions in that agreement still need to be addressed before the transaction becomes firm.
The important point is that the rights of the buyer and seller depend on the exact wording of the agreement and its conditions. There is no single rule that applies to every financing, inspection, status-certificate or sale-of-property condition.
Common Conditions in Ontario Offers
- Financing: the buyer may need time to satisfy themselves that suitable financing can be arranged under the wording of the clause.
- Home inspection: the agreement may make the offer conditional on the buyer being satisfied with an inspection or related due diligence.
- Status certificate review: condominium offers may include a condition allowing the buyer and/or their lawyer to review the condominium corporation’s documents.
- Sale of the buyer’s current property: some agreements are conditional on the buyer selling another property within a defined period.
RECO advises buyers to consider conditions that protect important interests such as financing and home inspection, and cautions buyers against removing protections simply to make an offer more competitive. See RECO’s Buyer’s Checklist and Competing Offers guidance.
Does a Financing or Inspection Condition Let a Buyer Walk Away Automatically?
Not automatically in every case. Whether a buyer can terminate the agreement, must act reasonably, must give notice, or must waive or fulfill a condition depends on the clause itself and the facts of the transaction. Buyers and sellers should not assume that every condition works the same way.
For that reason, questions about whether a condition has been validly fulfilled, waived or relied upon are legal questions and should be reviewed with an Ontario real estate lawyer.
When Does a Conditional Sale Become Firm?
A conditional transaction generally becomes firm when the outstanding conditions have been handled in the manner required by the agreement—such as being fulfilled or waived where the contract permits that. The specific timing and documentation depend on the wording of the APS and any schedules or amendments.
Can a Seller Continue Showing the Property or Consider Another Offer?
Possibly, but this also depends on the agreement, the listing instructions and whether any specific escape or continuation clause applies. A seller should not assume they are free to replace an accepted conditional agreement simply because another buyer appears.
If another offer arrives while a conditional agreement is in place, the seller and their representative should review the existing contract carefully and obtain legal advice where required before taking action.
Why Conditions Matter More Than Just the Offer Price
For sellers, the strongest offer is not always the one with the highest price. Financing, inspection, status-certificate, sale-of-property, closing-date and other terms can affect certainty and timing. For buyers, conditions can provide important protection while they complete due diligence.
RECO notes that mortgage pre-qualification does not safely eliminate the need for a financing condition, and that removing a home-inspection condition can expose a buyer to significant property risk. See RECO’s Competing Offers guidance.
Related Ontario Buyer & Seller Guides
If you are preparing to sell, see Should You Get a Home Inspection Before Selling in Ontario?. If you are deciding whether to accept an offer with financing, inspection or other conditions, read Should I Accept a Conditional Offer on My Home? Ontario Seller Guide for Fall 2026. If your sale and next purchase need to be coordinated, read Should I Sell My House First or Buy First in the GTA?.
Buying or Selling With Conditions?
I can help you understand the real-estate strategy and transaction process, while legal questions about clause wording, enforceability or termination should be reviewed with your lawyer.
This article provides general Ontario real-estate information only and is not legal advice. Contract rights depend on the exact Agreement of Purchase and Sale and the facts of the transaction. Consult an Ontario real estate lawyer for legal advice.