The conditional period is one of the most important stretches of time in the entire home buying process — and also one of the most misunderstood. Many buyers treat it as a waiting period. It isn’t. It’s a working period, with a deadline, in which you complete the due diligence that protects your decision to go firm.
Here’s what to do, in what order, and what to watch for before you waive your conditions.
The conditional period is your protection window. Use every day of it. Do not rush to waive conditions early unless everything is genuinely confirmed and you have no outstanding concerns.
Day One — The Moment Conditions Begin
The conditional period doesn’t start when you feel like it — it starts the moment your offer is accepted. Whatever number of days you negotiated begins counting immediately. Here’s what to do on day one:
Pay your deposit — due within 24 hours. Have the funds accessible before you ever make an offer.Standard is 5% of purchase price. Confirm exact amount and timing in your APS.
Send APS to your lawyer immediately — your lawyer needs to review your offer right away and advise you if there are any red flags in the agreement.If you don’t have a lawyer yet, find one today. Ask your agent for referrals.
Book your home inspector — quality inspectors have limited availability. Book today, not day three.Allow 2–3 hours for the inspection. Attend in person if possible.
Contact your mortgage broker or lender — send them the accepted APS and begin the financing confirmation process.They may need the property address, APS, and updated financial documents.
For condos: request the status certificate — your agent requests it from the listing brokerage. Allow up to 10 calendar days for the corporation to provide it.Forward it to your lawyer immediately upon receipt.
Financing Condition — What “Confirmed” Actually Means
Your financing condition gives you time to confirm that your lender will fund the specific property you’re purchasing. Pre-approval is a starting point — it means the lender is comfortable with you as a borrower. Full mortgage approval is what you need during the condition period, and it includes the lender’s assessment of the specific property.
Send the APS to your mortgage professional immediately after acceptance.They will submit it for appraisal and final approval on the specific property.
Provide any additional documents requested — updated pay stubs, bank statements, or anything the lender needs.Respond to lender requests same day. Delays here can eat your timeline.
Confirm the appraisal has been ordered — required for most mortgages. It takes time.If the appraisal comes in below purchase price, have a conversation with your broker about options.
Get written confirmation of approval — not verbal. A written mortgage commitment from your lender confirms you are clear to waive the financing condition.
Make no major financial changes during this period — no new credit applications, no large purchases, no job changes.
Home Inspection Condition — What to Look For
Your home inspector will produce a written report covering the condition of the property’s major systems, structure, and components. Your job is to understand what the report says and decide whether the findings are acceptable, negotiable, or deal-breaking.
Attend the inspection in person — the inspector can explain findings directly. The written report is important; the live walkthrough is more useful.
Read the full report — not just the summary. Pay specific attention to items flagged as major, safety concerns, or requiring immediate attention.A report with issues doesn’t automatically mean walk away — it means understand what you’re buying.
Discuss findings with your agent — which issues are dealbreakers, which are normal aging, which are negotiating points?
Negotiate a price adjustment or repair credit if significant issues are found — or walk away if the findings are serious enough to justify it.
Do not waive the inspection condition until you have reviewed the report and are comfortable with what you know.
Status Certificate — Condo Buyers Only
For condo purchases, the status certificate is one of the most important documents in the transaction. It reveals the building’s financial health, any outstanding special assessments, reserve fund status, ongoing litigation, and the rules of the condominium corporation.
Request the status certificate immediately — the corporation has up to 10 calendar days to provide it. Request on day one.
Forward it to your lawyer as soon as received — they need time to review it properly.
Ask your lawyer about the reserve fund — is it adequately funded? A chronically underfunded reserve is a red flag for future special assessments.
Check for pending special assessments — any outstanding or anticipated assessments become your financial obligation after closing.
Review ongoing litigation — lawsuits involving the condo corporation can affect the building’s finances and insurability.
Review the rules and declaration — are there rental restrictions, pet policies, or other rules that affect how you plan to use the unit?
Before You Waive — Final Confirmation
Written mortgage commitment received from lender.
Inspection report reviewed and all significant findings addressed or accepted.
Status certificate reviewed by your lawyer (if condo purchase).
Lawyer has reviewed the APS and has no outstanding concerns about the agreement itself.
You are genuinely comfortable proceeding — not just relieved that it’s almost over.
Never waive conditions under time pressure without completing your due diligence. If you need more time and the deadline is approaching, speak to your agent about requesting an extension from the seller. It is always better to ask for more time than to waive conditions you haven’t properly satisfied.
The conditional period protects you. Use it properly. The work you do here — financing confirmed, inspection reviewed, status certificate assessed — is what allows you to go firm with confidence rather than hope.
Legal disclaimer: This blog is for educational purposes only and does not constitute legal advice. Always work with a qualified real estate lawyer and a licensed real estate agent throughout your transaction. Every situation has specific details that affect your rights and obligations.
Frequently Asked Questions
What happens if I can’t satisfy my conditions in Ontario?
If a condition cannot be satisfied, you can terminate the Agreement of Purchase and Sale and receive your deposit back without penalty — provided you deliver written notice of termination before the condition deadline expires. If the deadline passes without action, the situation becomes legally complex. Speak with your lawyer immediately if you’re approaching a deadline with unresolved issues.
Can I extend the conditional period in Ontario?
Yes, if both buyer and seller agree in writing to an amendment. Neither party is obligated to agree. If you need more time, ask through your agent as early as possible — requesting an extension at the last minute is a weaker position than raising the issue with days still on the clock.
Do I need a home inspection on a new construction home?
New construction homes in Ontario are covered by Tarion warranty protection, which provides coverage for workmanship, materials, and structural issues. However, a new home inspection (also called a pre-delivery inspection or PDI) is still valuable — it documents existing deficiencies before you take possession so they’re covered under warranty. For resale homes, a home inspection condition is one of your most important protections.
What issues in a home inspection are dealbreakers?
There is no universal list — it depends on the severity, your budget, your risk tolerance, and whether the seller is willing to negotiate. Generally, the most serious findings involve structural integrity, active water intrusion, major electrical hazards, or foundation failures. Normal aging of systems — an older furnace, a roof approaching end of life — is often negotiable through a price adjustment or repair credit rather than a reason to terminate. Your agent and inspector can help you assess what’s cosmetic, what’s manageable, and what’s genuinely serious.
Sales Representative · Zolo Realty Brokerage · Licensed in Ontario (RECO #5035461)
Toronto real estate agent specializing in first-time buyers and families across the GTA. 80+ five-star reviews · 100+ clients · $25M+ in completed transactions.