In Ontario, every home purchase is governed by an Agreement of Purchase and Sale (APS) — a legally binding contract that, once firm, locks both parties in. As a Broker who has guided hundreds of buyers through the signing process, I’ve seen costly mistakes made by rushing through this document. Here are the five most important things to understand before you sign.
1
Conditions: Your Most Important Protection
Conditions are clauses that allow you to exit the deal — with your deposit back — if certain requirements aren’t met. The most common are Financing Condition, Home Inspection Condition, and sometimes a Status Certificate review for condos. Each condition has a deadline. If the condition isn’t waived or fulfilled by the deadline, you can walk away. Once conditions are waived and the deal goes “firm,” you’re legally bound to complete — pulling out means losing your deposit and potentially facing legal action.
2
Inclusions & Exclusions: If It’s Not Written, It’s Not Yours
Anything you expect to stay with the home must be explicitly listed under Inclusions. Common disputes arise over appliances (fridge, dishwasher, washer/dryer), window coverings, light fixtures, garage door openers, and even central vacuum attachments. Sellers can also list Exclusions — items they’re taking with them, like a cherished chandelier. Review this section carefully. In competitive offers, buyers sometimes skip reading this and are surprised when they walk in on closing day to find a bare kitchen.
3
Completion Date: Match It to Your Mortgage Timeline
The Completion Date is when money changes hands, title transfers, and you get the keys. It’s also the day your lender needs to fund the mortgage. If your lender needs 60 days to finalize the mortgage, setting a 30-day closing is a recipe for disaster. 60–90 days is typically buyer-friendly, giving enough time for financing, inspection, and your lawyer’s due diligence. If a seller insists on a very short closing, discuss the risks with your mortgage broker before agreeing.
4
SPIS: Seller Silence Doesn’t Mean No Problems
In Ontario, sellers are not required to provide a Seller Property Information Statement (SPIS). If they do provide one, scrutinize every answer — especially disclosures about water damage, foundation issues, unpermitted renovations, and insurance claims. If they don’t provide one, that’s not reassurance — it simply means
you need a thorough home inspection more than ever. Never assume that an absence of disclosure means an absence of problems.
5
Deposit: Higher Isn’t Always Better
The deposit is typically due within 24 hours of acceptance, held in the selling brokerage’s trust account, and applied toward your purchase price at closing. Standard is around 5% of the purchase price. With conditions protecting you, the deposit is fully refundable if those conditions fail. Without conditions (a firm offer), if you back out, you risk losing the entire deposit and could face a lawsuit for damages. Don’t offer a deposit you can’t afford to lose in a worst-case scenario.
Arthur’s Pro Tip
In competitive Toronto offer nights, buyers often feel pressured to sign quickly. My advice: know your conditions, limits, and must-haves before offer night — not during. Your realtor should walk you through every clause before you sign, not after. A well-structured offer protects you without weakening your competitive position.
Ontario Home Purchase Timeline
Submit APS with Conditions
↓
Seller Accepts → Deposit Due (24h)
↓
Fulfill Conditions (Inspection, Financing)
↓
Waive Conditions → Deal Goes Firm
↓
Completion Date → Keys in Hand
AZ
Arthur Zhao, Broker
SRS · ABR · MCNE · AZ Real Estate Team
📞 416-277-3836 · arthurzhao.realtor
Ontario Real Estate
APS Contract
Home Buying
Offer Conditions
Toronto Housing
First Time Buyer
