A condition in a real estate offer is a clause that allows the buyer (or occasionally the seller) to exit the agreement if a specific requirement is not satisfied. Conditions are your protection mechanisms as a buyer. In a slower market, conditions are standard. In competitive, multi-offer situations, some buyers waive them to make their offer more attractive to the seller. Understanding what each condition does — and what you give up when you waive it — is essential before making that decision.
Financing condition
A financing condition gives you the right to exit the purchase agreement if your mortgage lender does not approve the mortgage for this specific property. The typical condition period is 3–5 business days.
Even with a strong pre-approval, there are scenarios where lender approval of the specific property can be delayed or denied: the property doesn't meet the lender's lending criteria (certain condo buildings, rural properties, properties with known issues), the appraisal comes in below the purchase price, or your personal financial situation changes between pre-approval and offer.
Waiving the financing condition means that if your lender ultimately refuses the mortgage, you are legally obligated to complete the purchase — or lose your deposit and potentially face legal action for breach of contract. Only do this if your pre-approval is solid, your lender has seen the property type, and you have had an explicit conversation with your mortgage professional about the risk.
Home inspection condition
A home inspection condition gives you the right to have the property professionally inspected during the condition period and to exit the agreement (or renegotiate) based on the findings. The typical condition period is 3–5 business days.
Waiving the home inspection condition means you accept the property in its current condition, visible or not. If a major defect is discovered after closing — a failing foundation, active water intrusion, unsafe wiring — that cost is yours to bear with no recourse against the seller for undisclosed defects (unless you can prove the seller knew and deliberately concealed them, which is difficult).
A middle-ground option is to arrange a pre-offer inspection before submitting your offer. Some sellers will accommodate this during the showing period. It gives you the same information without the protection of a formal condition, but allows you to submit a clean offer with knowledge of the property's condition.
Status certificate condition (condos)
If you are purchasing a condominium, the standard practice is to include a condition allowing your lawyer to review the status certificate — a package of documents from the condo corporation that includes the financial statements, reserve fund study, declaration, by-laws, rules, budget, and any pending or current litigation against the corporation.
The condition period is 10 days under Ontario law. Your lawyer reviews the documents and confirms they are satisfactory. This condition is important: an underfunded reserve fund, a pending special assessment, or problematic by-laws (e.g., restrictions on short-term rentals if that's relevant to you) can significantly affect the value and desirability of the unit.
Sale of property condition
This condition makes your purchase contingent on selling your current home first. It is rarely accepted by sellers in competitive markets because it introduces uncertainty. If you need to sell before you can buy, talk to your agent about bridge financing options or the timing of your transactions.
Making the decision in a competitive offer
There is no universal right answer on conditions. The decision depends on: the specific property and its apparent condition, the strength of your financing, how competitive the offer situation is, and your personal financial capacity to absorb a worst-case outcome.
What we always tell our clients: have this conversation with your agent before offer night, not during it. Deciding under pressure, in the moment, is not how you want to make a decision of this magnitude.
If you are buying in the GTA and want to understand how conditions work in practice, reach out to us. We'll walk you through the current market context and what's typical for the type of property you're pursuing.
