Ontario Selling Guide
The highest offer is not automatically the strongest offer. Ontario sellers should compare the full agreement, including price, deposit, conditions, timing, inclusions and the buyer’s requested obligations.
Quick answer
Read the complete offer before making a decision. Once accepted, an agreement can become legally binding. Ask questions and obtain legal advice when a term is unclear.
Start With the Complete Offer
An offer is more than the first-page price. Review every schedule, clause, amendment and attachment together. Pay attention to deadlines and the time at which the offer becomes irrevocable.
Key Terms to Compare
- Purchase price
- Deposit amount, timing and holder
- Financing and inspection conditions
- Sale-of-property or other buyer conditions
- Closing date
- Inclusions, exclusions and rental items
- Requested representations, warranties or seller work
- Buyer visits before closing
- Adjustments, title review and document requirements
Deposit
A deposit can demonstrate commitment and may provide security if the buyer fails to complete the transaction, but the consequences of a failed transaction are legal matters. Confirm the amount, deadline, payee and method of delivery.
Conditions
A conditional offer may depend on financing, inspection, insurance, the sale of another property, document review or another stated event. Review who controls the condition, the deadline and what notice is required to waive or fulfill it.
Closing Date
The closing date affects moving, mortgage discharge, lawyer availability, the purchase of another home and temporary accommodation. A convenient date can sometimes be as important as a modest price difference.
Inclusions, Exclusions and Rental Items
Identify fixtures and chattels clearly. Appliances, light fixtures, window coverings, hot-water equipment and other items should not be left to assumption.
Representations, Warranties and Seller Work
Read clauses requiring repairs, professional work, permits, documents or warranties carefully. Avoid agreeing to an obligation without understanding the cost, deadline and standard of completion.
Competing Offers
RECO provides consumer information about competing offers and the selling process. The existence of competition does not eliminate the need to review each offer carefully or guarantee that every buyer will improve their terms.
Possible Responses
- Accept the offer as written
- Reject the offer
- Make a counter-offer
- Request clarification or a written amendment before deciding
A counter-offer changes the negotiation and can affect the original offer. Consider timing and legal consequences before responding.
Related Ontario Selling Guides
Official consumer resources: RECO information for sellers and the RECO Information Guide.
General information only: This guide is educational and is not legal, financial, tax, appraisal, inspection or property-specific real estate advice. Agreements and circumstances differ. Confirm important decisions with the appropriate professionals.
Featured photo by Arek R on Unsplash.