Ontario APS Explained:
Every Clause You Need to Know Before Signing

The APS opens by identifying the buyer(s), seller(s), and the property being transferred. This seems straightforward — but the details matter enormously.

Buyer name(s) must match exactly what appears on your mortgage application. If you’re buying with a partner or spouse, both names go on the contract — and you need to decide between Joint Tenancy (right of survivorship) and Tenants in Common (each party owns a defined share).

The Legal Description is the land registry identifier for the property — more precise than a street address. For condos, this section also specifies the unit number, parking space(s), and locker, all of which should be independently verified against the seller’s title documents.

A mismatch here — even a middle initial — can create title issues that delay or derail your closing. Double-check everything.

The purchase price is the number everyone focuses on. But the deposit clause deserves just as much attention.

In Ontario, the deposit is typically 5% of the purchase price, paid within 24 hours of the seller’s acceptance — by certified cheque or bank draft, payable to the listing brokerage in trust. This money sits in a trust account until closing, at which point it’s credited toward your down payment.

What happens if the deal falls through? If a condition isn’t satisfied and you properly terminate the contract, your deposit is returned in full. If you default on a firm deal (no conditions remaining), the seller can sue you for damages — and your deposit is often forfeit as part of that.

In 2026’s market, some sellers still request larger deposits (up to 10%) as a show of good faith, particularly in competitive bidding situations. Your agent can advise on what’s reasonable for a given transaction.

Conditions are the most powerful buyer-protection clauses in the APS. A conditional offer remains pending — it doesn’t become binding — until the condition is either satisfied or waived.

Financing Condition: Gives you typically 5–7 business days to secure a formal mortgage commitment from your lender. If your financing falls through — or comes back with unacceptable terms — you can walk away and keep your deposit. In 2026, with rates remaining above long-run averages, this condition remains essential even if you’ve been pre-approved.

Inspection Condition: Allows you to hire a licensed home inspector and review the results. If the inspection reveals material defects — a failing roof, knob-and-tube wiring, foundation cracks — you can terminate the deal or renegotiate the price.

Status Certificate Condition (condos): A condo’s Status Certificate is a package of financial and governance documents — budget, reserve fund study, bylaws, any pending special assessments. You typically get 3–5 business days to have your lawyer review it.

Each condition has a hard deadline. Before that date, you must submit either a Waiver (condition satisfied — deal is now firm) or a Notice of Termination (condition not met — deal is void, deposit returned). Missing the deadline entirely usually results in automatic termination — but the exact language in your APS governs.

The closing date (also called the completion date) is the day legal ownership transfers. For most resale transactions in Ontario, closings range from 30 to 90 days. Shorter closings are possible but put pressure on your mortgage approval timeline; longer closings give both sides more flexibility.

Financial Adjustments: On closing day, your lawyer calculates prorated credits and charges between buyer and seller, including:

· Property tax (prorated to the day of closing)

· Prepaid utilities or condo fees

· Any rent deposits if tenants are remaining

· Fuel oil or propane in tank (if applicable)

These adjustments mean the final amount you wire to your lawyer on closing day is almost never exactly the purchase price minus your deposit — it’s slightly higher or lower based on these calculations. Your lawyer will provide a closing statement ahead of time so there are no surprises.

This is one of the most misunderstood sections — and one of the most common sources of post-closing disputes.

Chattels Included: Personal property that doesn’t automatically transfer with the house but that the seller has agreed to leave behind — typically appliances, window coverings, garage door openers, TV mounts, and the like. Every item you want must be explicitly listed here.

Fixtures Excluded: Items permanently attached to the property that would normally stay but which the seller intends to take. A custom dining room light fixture, a built-in wine rack, a wall-mounted mirror — if the seller wants it, it must be listed here. Otherwise, it legally belongs with the house.

The practical rule: if you saw it during your showing and you’re counting on it being there on closing day, make sure it’s in the contract. A good agent will walk through the property with a checklist and make sure nothing is ambiguous.

Seller Representations: The seller warrants that the property doesn’t have encroachments that would affect title, that there are no undisclosed tenancies, and various other standard declarations. If these turn out to be false, you have legal recourse — but it’s still better to catch problems before closing than litigate afterward.

Risk Clause: Until closing, the risk of loss remains with the seller. If the house burns down the night before closing, the seller — not you — bears that loss, and you’re entitled to terminate the deal. This is why buyers typically arrange their insurance to begin on the closing date, not before.

HST: For new construction, the HST treatment must be carefully spelled out in the contract. Builders typically build HST into the purchase price and then assign the rebate back — but only if the buyer qualifies (i.e., will occupy the property as a primary residence). Investment buyers who don’t qualify for the rebate need to budget an additional ~4% of the purchase price.

Schedule A is where your agent (and often your lawyer) adds custom clauses: extended condition periods, seller take-back arrangements, specific repair requirements, or anything else that doesn’t fit the standard form. This is where experienced representation makes a real financial difference — a well-drafted Schedule A can save you from expensive problems down the road.