Most home offers in Canada include conditions: terms that must be met, or waived, before the deal becomes firm. They protect the buyer while key questions are answered, but they also make an offer less attractive to a seller in a competitive market. Here is what the common conditions do, and what to think about before removing one.
What a condition does
A condition (called a subject in British Columbia) sets out something that must happen by a deadline. If it is not satisfied or waived in time, the buyer can usually walk away under the terms of the agreement. Once all conditions are met or waived, the deal is firm. The exact wording, deadlines and deposit treatment depend on the contract used in each province, so have the agreement reviewed before signing.
The Real Estate Council of Ontario (RECO) suggests buyers consider making an offer conditional on mortgage financing, a home inspection and the sale of an existing home, noting that "these conditions can provide you with additional assurances and protection."
The financing condition
A financing condition gives the buyer time to get final mortgage approval. It matters even with a pre-approval. The Financial Consumer Agency of Canada (FCAC) notes that pre-approval does not ensure you will get a mortgage for that amount, that the final amount depends on the property's value and down payment, and that a lender verifies the property meets its standards before approving a loan.
Questions to ask: how long will the lender need, does the property type raise any issues (for example, a condo with low reserves or a home with a rental suite), and what happens if the lender's valuation is lower than the price.
The appraisal condition
Some buyers add a separate appraisal condition, or rely on the financing condition to cover a low valuation. If the lender's appraisal comes in under the purchase price, the lender may lend less, and the buyer must cover the gap with more cash or renegotiate. An appraiser works for whoever orders the report, often the lender.
The inspection condition
An inspection condition allows time for a home inspection, and the right to walk away or renegotiate based on what it finds. RECO warns that "when there are competing offers it can be tempting to waive your conditions (such as a home inspection). Think twice before doing this." Without it, repairs found after closing are generally the buyer's cost.
Other common conditions
- Sale of the buyer's home: protects a buyer who needs sale proceeds, but sellers often see it as the weakest offer.
- Condo or strata documents: time to review financial statements, reserve funds, bylaws and any special assessments.
- Insurance: confirming the home can be insured at a reasonable cost, which matters for older homes or flood-prone areas.
- Lawyer or notary review: time for a legal professional to review the agreement.
British Columbia's rescission period is separate
In B.C., the Home Buyer Rescission Period gives buyers of most residential properties up to three business days after an accepted offer to rescind, whether or not a licensee is involved. The buyer must notify the seller in writing before the period expires and pay a rescission fee of 0.25% of the offer price. The right cannot be waived. It is not a substitute for conditions: it is short, and it costs money to use.
Before you waive a condition
Our interpretation: a firm offer can win in a busy market, but it shifts risk to the buyer. Before going firm, consider getting a full mortgage approval on the specific property, a pre-offer inspection where the seller allows it, and enough cash to cover a low appraisal.
Next steps
A buyer's agent can explain the conditions commonly used locally and how sellers view them. To estimate the cash needed if a valuation comes in short, try the closing costs calculator.
Sources
- Real Estate Council of Ontario (RECO), Buyer's checklist, 2026-07-03. Accessed 2026-10-29.
- BC Financial Services Authority, Home Buyer Rescission Period, 2026-10-29. Accessed 2026-10-29.
- Financial Consumer Agency of Canada, Getting preapproved for a mortgage, 2025-10-15. Accessed 2026-10-29.
General information only, not legal or financial advice. Offer terms and rules vary by province and contract; have any agreement reviewed by a lawyer or notary before signing.
