Asked to Sign an Ontario Agreement of Purchase and Sale? What a Buyer Should Review

Vinay Thapliyal, Founder & Principal Lawyer

October 27, 2026

Real Estate

An accepted home purchase agreement can bind you before closing. Learn which Ontario APS terms and property-specific questions deserve attention before you sign.

Request an agreement review consultation Call 905-283-8514

Have an offer or a signing deadline? Tell us the property type and proposed deadline in your initial inquiry. We will check whether we can assist and explain consultation availability, scope and any applicable fee before booking. Further transaction work is assessed and agreed separately.

Before signing an Ontario Agreement of Purchase and Sale (APS), a buyer should understand the obligations the document creates and the risks it leaves with them. The price is only one part. Conditions, deposit terms, closing date, included items, property information and the funds needed on closing can all matter. An accepted agreement may be binding even though closing is weeks or months away.

This guide focuses primarily on a residential resale purchase. New-build and condominium purchases can involve different documents and statutory rights, discussed separately below. The actual wording of the offer and its schedules determines what applies to your transaction.

Key takeaways

Review before signing when possible. A buyer should not assume there will be a general opportunity to cancel or obtain legal review after acceptance.
Conditions protect only according to their wording. Financing, inspection, status-certificate and other conditions need clear subjects, dates and notice requirements.
Plan for more than the price. Deposit timing, closing funds, land transfer tax, adjustments, financing and property-specific obligations can affect whether the purchase is workable.

What does an Agreement of Purchase and Sale do?

An APS records the buyer's and seller's agreed terms for a property transaction. The offer typically identifies the parties and property, price, deposit, closing date and other terms, with schedules or amendments that may be just as important as the main form. Once an offer is accepted in accordance with its terms, it can create enforceable obligations.

An offer, an accepted agreement and a condition are different

Offer: Proposed terms, including how long the offer remains open for acceptance.

Accepted agreement: The parties may then be legally bound by the signed terms; a later change ordinarily requires a legal basis or agreement.

Condition: A specific contractual qualification, such as financing or inspection, whose effect depends on its exact wording and deadlines. It is not a general licence to walk away for any reason.

Which terms deserve close attention before signing?

1. Financing, inspection and other conditions

Ask whether the offer includes the conditions that matter to your purchase. A mortgage pre-approval is not a guarantee that final financing will be available for this property on the needed terms. An inspection condition may give an opportunity to assess the home's condition, but it must be drafted and used within the agreed time. A sale-of-existing-home condition or a condition for lawyer review may also be relevant in some transactions, if negotiated and clearly included.

Read who benefits from each condition, what must be satisfied, by when, and what notice or document is required. Removing a condition to compete for a property can expose a buyer to obligations they may not be able to complete. Do not assume an extension, waiver, or termination follows automatically from a conversation with an agent, lender or seller.

2. The deposit and payment dates

Check the amount, payee, delivery method and exact deadline for each deposit. The deposit is usually credited toward the purchase price on closing, but its treatment if the transaction does not close depends on the agreement and the circumstances. Failing to deliver a required deposit does not automatically cancel the deal. It may be a breach with serious consequences. If the source or timing of funds is uncertain, address that before committing.

3. Closing date, possession and related transactions

Consider whether the closing date works with your lender, sale of another home, moving arrangements and any intended occupancy. Check what the agreement says about possession, existing tenancies or vacant possession, and any property-specific promise. A closing date is a contractual obligation; changing it later may require the other party's agreement and can carry costs or risk.

4. What is included, excluded or rented

Make sure the written terms identify important appliances, light fixtures, window coverings and other items, and any exclusions. Ask about rented equipment, service contracts, solar arrangements or other obligations that could continue after closing. If a repair, removal or completion item matters, its wording and timing should be clear rather than left to memory or a verbal assurance.

5. Property-specific records and use

The right questions depend on the property. A buyer may need information about title, surveys, access, easements, work done without permits, zoning, boundaries, water or septic systems, or an existing tenancy. A home inspection can assess physical systems, while a lawyer's title and contract review addresses different legal issues. Neither substitutes for every other type of due diligence.

6. Total funds required to close

Beyond the purchase price and deposit, plan for the remaining down payment, lender requirements, legal fees and disbursements, Ontario land transfer tax where applicable, and adjustments under the agreement. A Toronto property may involve a separate municipal land transfer tax. Depending on the property and buyer, other tax or program rules may matter. A lawyer and lender can help identify the transaction-specific figures; this article cannot calculate them.

Example of scope: Reviewing a short resale offer before signature may involve different work from analyzing a lengthy builder APS, a condominium disclosure package, a disputed title issue or the full closing transaction. Legal Route can explain the proposed review, timing and fee arrangement before work begins. This is an example of scope, not a price quote or promise of immediate availability.

How do condo and new-build purchases differ?

Resale condo: Consider whether the offer gives enough time and an appropriate condition to obtain and review a status certificate. It contains information and documents concerning the condominium corporation, including governing documents and financial matters. A resale condo does not have a general legislated cooling-off period simply because it is a condo.

New or pre-construction condo from a developer: Ontario provides particular disclosure and rescission rights, including a 10-day period after receipt of the required signed agreement, disclosure statement and condominium buyers' guide. The timing and method for exercising rights matter. The development documents and adjustments also require review; do not assume the same rule applies to a resale home or every new home.

New freehold home or other builder purchase: The APS may contain lengthy schedules, an addendum with critical dates, delay provisions, adjustments and other charges. Review the full package and the correct property-specific rules before signing. A builder's sales summary is not a substitute for the actual agreement and addendum.

Upcoming change: As of October 2026, Ontario's Home Construction Regulatory Authority says new information sheets and addenda, together with a 10-day cooling-off period for purchasers of new freehold homes, will apply to purchase agreements entered into on or after January 1, 2027. The type and date of your agreement matter. Check the rules in force when you sign.

What can a lawyer review before you sign?

Within an agreed scope and available time, a real estate lawyer can examine the offer and schedules, identify legal obligations or missing terms, explain the effect of proposed conditions and dates, and flag issues that need follow-up with the lender, agent, seller, builder or another professional. The buyer remains responsible for the commercial decision and for obtaining any inspection, financing or other specialist assessment needed.

Send the complete proposed agreement, not only the signature page. Include schedules, amendments, disclosure or builder addenda that you have received, and state the offer deadline. If you have already signed, legal advice may still help you understand the terms and next dates, but it may not create a cancellation right or make a missed condition reappear.

Which situation brings you here?

Asked to sign quickly: Identify the offer expiry time and seek a review of the full package before committing, if possible.
Unsure about a condition: Clarify what the clause actually requires and what happens if it is not satisfied.
Buying a condo or new build: Review status-certificate or disclosure rights, builder schedules, critical dates and possible adjustments.
Already signed: Ask about the next contractual dates and what the existing terms permit.

What to have ready for an initial inquiry

Tell us whether the property is a resale house, resale condo, new-build freehold home or pre-construction condo; the proposed signing deadline; whether the offer has been accepted; and the main question you want reviewed. Note any financing, inspection or closing concern. A brief description is enough at first. Please wait for conflict-check and secure intake instructions before sending detailed confidential documents.

How Legal Route can assist

Legal Route Professional Corporation provides Ontario real estate law services. Depending on availability and the agreed scope, we can discuss a proposed APS before signature, review contract terms and conditions, advise on an accepted purchase, and provide legal services for a residential closing. We explain the proposed work and fee arrangement before further services begin.

Where we assist

Our office is in Brampton. We assist buyers in Toronto and the regions of Peel, York, Halton and Durham, and can discuss suitable Ontario real estate matters through a virtual consultation. Property location, lender, signing and closing requirements may call for other steps; a virtual consultation does not mean every part of a transaction can be handled remotely.

Explore our Real Estate Law services and learn about Vinay Thapliyal, Founder & Principal Lawyer.

Frequently asked questions

Can I change my mind after signing an Ontario home offer?

Do not assume there is a general cooling-off period for a resale home. Whether you can end an accepted agreement depends on its terms and applicable law. New or pre-construction condo purchases from a developer have specific statutory rights discussed above.

Does a mortgage pre-approval remove the need for a financing condition?

Not necessarily. Final lending can depend on the property, appraisal, updated finances and lender requirements. A buyer should understand the risk of offering without a financing condition.

Will I automatically get my deposit back if financing fails?

No automatic answer applies. The financing clause, whether it was included and properly addressed, the parties' actions and the reason the deal failed all matter. Do not assume the deposit is automatically refundable or forfeited in every case.

Can I add a home inspection condition after the seller accepts?

A condition is generally negotiated as part of the offer. A later addition would ordinarily require the parties' agreement. The signed document controls; ask for advice before relying on an informal assurance.

What is a status-certificate condition for a resale condo?

It is a negotiated contract term that can provide time to obtain and assess the condominium corporation's status certificate according to the clause's wording. The document can reveal financial and governance information relevant to the purchase.

Can my real estate agent and lawyer review different issues?

Yes. An agent can assist with the offer process and market questions; a lawyer can advise on legal effect, contract wording, title and closing obligations within the agreed retainer. An inspector and lender address other matters. Clarify who is responsible for each question.

Review the offer before you commit

If you are being asked to sign an APS, contact Legal Route with the property type, your main concern and the signing deadline. We will check conflicts and availability, then explain whether we can assist, the proposed review scope, any applicable fee and the next step.

Request an agreement review consultation or call 905-283-8514.

Email: info@legalroute.ca
Office by appointment: 2074 Steeles Avenue East, Unit 17, Brampton, ON L6T 5A5
Hours: Monday–Friday, 9:30 a.m.–5:30 p.m. Eastern Time.

Contacting the firm does not itself create a lawyer-client relationship or mean we have accepted responsibility for an offer deadline. If time is short, do not wait for a website reply before seeking timely legal assistance. Further services require an agreed scope and fee arrangement.

Official sources

For further reading on the consumer and transaction issues discussed above:

Legal information disclaimer

This article provides general information about Ontario residential purchases, not legal, tax, financial or inspection advice. Contract wording, property type, financing and applicable law determine the buyer's rights and obligations. Rules and institutional requirements may change. Contacting Legal Route does not itself create a lawyer-client relationship or mean the firm has agreed to act. Representation and scope must be confirmed.