The offer process in Ontario real estate is genuinely different from what most people expect — and very different from how it works in other provinces or countries. If you’re relocating, buying for the first time, or simply haven’t been through a transaction in a while, understanding the mechanics before you’re in the middle of one changes your experience entirely.
This guide covers how offers actually work in Ontario — from the Agreement of Purchase and Sale to offer nights, bully offers, and conditions. It’s educational, not legal advice. For anything specific to your transaction, your real estate lawyer is the right person to guide you.
The Agreement of Purchase and Sale
When you make an offer on a home in Ontario, your agent prepares an Agreement of Purchase and Sale (APS) — a legally binding contract that, if accepted, obligates both you and the seller to complete the transaction. This is not a casual expression of interest. It is a legal document.
The APS includes the offer price, the deposit amount and when it’s due, the closing date, what’s included and excluded from the sale, and any conditions the buyer wants to include. Every element of this document is negotiable — and how it’s drafted matters.
Deposits — What You Need to Know
A deposit is paid when your offer is accepted — typically within 24 hours of acceptance. Standard practice in Ontario is a deposit of 5% of the purchase price. The deposit is held in trust by the listing brokerage and applied to your purchase price at closing. It is separate from your down payment but forms part of it.
A higher deposit signals seriousness to the seller. In competitive situations, a strong deposit can differentiate your offer from others at the same price.
Important: If the sale becomes firm (conditions waived) and you then fail to complete the purchase, you risk losing your deposit and may face legal action. The deposit is not refundable once the deal is firm.
Offer Nights — How They Work
An offer night (also called a “set offer date”) is when the seller designates a specific date and time when all offers will be reviewed together. The listing will typically say something like “Offers reviewed Tuesday at 7pm.” This is a deliberate strategy to create a structured competitive environment.
Property lists — offer date is set
The seller and their agent decide not to accept offers immediately, creating anticipation and giving buyers time to tour and prepare.
Buyers register to offer
Interested buyers (through their agents) register their intent to submit an offer. The listing agent is required to disclose the number of registered offers — though not their contents.
Offers submitted by deadline
All offers arrive by the specified time. Each buyer submits their best offer, not knowing exactly what others are offering.
Seller reviews and decides
The seller can accept one offer outright, reject all offers, sign back (counter) one offer, or in some circumstances begin working with a preferred buyer. There is no obligation to accept the highest offer.
In the current market, offer nights are less common than during peak years. Many sellers are now reviewing offers as they come in. Understanding both scenarios prepares you for whatever listing you encounter.
Bully Offers — What They Are and How to Handle Them
A bully offer (also called a pre-emptive offer) is submitted before the seller’s scheduled offer date, with the intention of convincing the seller to accept before competition arrives. Bully offers are typically strong — close to or above asking, with few or no conditions, and a short expiry time.
Sellers can accept, reject, or completely ignore a bully offer. If they accept, the offer night is cancelled. If they reject it and proceed to the offer night, other buyers proceed normally.
From a buyer’s perspective, submitting a bully offer means you’re betting that pre-empting the field is worth potentially overpaying. The decision depends on how badly you want the property, what comparable sales tell you it’s worth, and what your agent’s read of the seller’s motivations is.
A bully offer is a strategy, not a panic move. It works best when it’s informed — when you know the home’s value, understand the seller’s timeline, and have a clear reason to act before offer night.
Conditions — Your Protection in the Deal
Conditions are clauses in your offer that allow you to walk away without penalty if a specific requirement isn’t met within a specified timeframe. They are your protection. Waiving them speeds up your offer but removes your safety net.
The most common conditions in Ontario:
Financing Condition
Gives you a set number of business days (typically 3–5) to confirm your mortgage approval for this specific property. If financing falls through, you can walk away and receive your deposit back.
Home Inspection Condition
Gives you time to have a licensed home inspector assess the property. If the inspection reveals significant issues you cannot resolve with the seller, you can terminate the agreement.
Status Certificate Review (Condos)
For condo purchases, gives your lawyer time to review the building’s status certificate — financial health, reserve fund, any outstanding special assessments, litigation, and rules.
In competitive offer situations, buyers sometimes waive conditions to make their offer more attractive. This reduces your protection significantly. Waiving a home inspection doesn’t mean the house has no problems — it means you’ve agreed to buy it regardless. In today’s market, with homes sitting longer and buyers having more time, including conditions has become far more common and accepted than it was during peak years.
Sign Backs — The Counter Offer
If a seller doesn’t accept your offer as written, they may sign back — returning your offer with changes. They might alter the price, the closing date, the inclusions, or the conditions. A sign back is a counter offer. You can accept it, sign it back again with further changes, or let it expire. Each sign back has an expiry time. Once expired, neither party is bound.
Understanding these mechanics before you submit your first offer changes your experience fundamentally. You’re making decisions faster, under real pressure, on one of the largest financial commitments of your life. Knowing the process removes a layer of uncertainty from that pressure.
Legal disclaimer: This blog is for educational purposes only and does not constitute legal advice. Real estate transactions in Ontario involve legally binding agreements. Always work with a licensed real estate agent and retain a qualified real estate lawyer before signing any offer or agreement.
Frequently Asked Questions
What is an offer night in Toronto real estate?
An offer night is when a seller sets a specific date and time to review all offers at once, rather than accepting offers as they come in. All buyers must submit by the deadline. The seller then reviews all offers and can accept, reject, or sign back any of them. The number of registered offers must be disclosed — but not the amounts.
What is a bully offer in Ontario?
A bully offer (pre-emptive offer) is submitted before the seller’s scheduled offer date. It’s typically strong — near or above asking, with few conditions and a short expiry — designed to convince the seller to accept before offer night. Sellers can accept, reject, or ignore it. If rejected, the offer night proceeds normally.
What conditions should I include in my Ontario real estate offer?
The most common conditions are a financing condition (time to confirm mortgage approval) and a home inspection condition (time to have the property inspected). For condos, a status certificate review condition is also standard. The conditions you include depend on the property, market conditions, and your risk tolerance — discuss with your agent and lawyer before deciding what to include or waive.
Can a seller reject my offer even if I offered the asking price?
Yes. In Ontario, a seller is not obligated to accept any offer, regardless of price. They can reject all offers, sign back with different terms, or accept a lower offer for other reasons (preferred closing date, fewer conditions, etc.). The asking price is a strategy, not a commitment.
What happens if I change my mind after my offer is accepted?
If your offer includes conditions and you’re still within the conditional period, you can terminate the agreement if a condition isn’t satisfied — without penalty. Once conditions are waived and the sale is firm, walking away means losing your deposit and potentially facing legal action from the seller. This is why conditions exist and why the decision to waive them should be deliberate.
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.