The three conditions that matter most are financing, home inspection and, for condominiums, a status certificate review. Each gives you a defined window, usually three to seven business days, to confirm the deal is sound and walk away with your deposit if it is not. In today's Durham Region market, sellers are accepting all three again, so there is rarely a good reason to waive them.
Conditions are not a sign of a weak offer. They are the difference between a buyer who is protected and one who is exposed to the full cost of whatever they did not know.
The three conditions and what each one does
Financing. Even with a pre-approval, your lender has not approved this property. The appraisal may come in low, the lender may object to the property type, or your circumstances may have changed. A financing condition gives you the time to receive a written commitment. The clause should be worded so that the buyer's satisfaction is in the buyer's sole and absolute discretion, and the window should be at least five business days to allow for an appraisal.
Home inspection. A licensed inspector reviews the structure, roof, electrical, plumbing, HVAC, foundation and drainage. The condition lets you walk away, or renegotiate, if the inspection turns up material problems. The clause should again be in the buyer's sole discretion, not limited to "major defects" or a dollar threshold, because the moment you accept a threshold you are negotiating over whether a problem qualifies instead of whether you want the house.
Status certificate. For condominiums, the status certificate is the corporation's financial and legal snapshot: the reserve fund, the budget, any special assessments, lawsuits, rules and the unit's standing. Your lawyer reviews it, not you. The condition should allow a minimum of three business days after the certificate is received, since the corporation has up to ten days to produce it and the clock should not start until it arrives.
Essential clause elements
- The condition is for the sole benefit of the buyer and may be waived at the buyer's option.
- Satisfaction is at the buyer's sole and absolute discretion. Avoid language that requires the buyer to act reasonably or that lets the seller challenge the reason for walking away.
- A defined deadline in business days, with the time of day stated, typically 6:00 p.m. on the final day.
- A clear statement that if the buyer does not deliver notice of fulfilment or waiver by the deadline, the agreement is null and void and the deposit is returned in full without deduction.
- For the status certificate, the deadline runs from receipt of the certificate, not from acceptance of the offer.
- For financing, the clause should refer to arranging financing satisfactory to the buyer, not a specific rate or lender, so you retain flexibility.
The risk of waiving each condition
Condition | What you are betting | Typical cost if the bet goes wrong | When waiving is defensible |
|---|---|---|---|
Financing | That the appraisal comes in at price and the lender approves the property | You cannot close, lose your deposit and may be sued for the difference if the seller resells for less | Only with a full written lender commitment on this specific property, plus a cash reserve for an appraisal shortfall |
Home inspection | That there are no hidden defects | Roof, foundation, knob-and-tube wiring or a failed septic can each run $15,000 to $50,000 or more | A pre-offer inspection has been done, or the property is a recent build with a Tarion warranty |
Status certificate | That the condo corporation is financially sound with no pending assessments or litigation | Special assessments of $5,000 to $50,000 per unit are common in buildings with underfunded reserves | A lawyer has reviewed a current certificate before the offer, obtained from the seller or a recent listing |
How the market changes the answer
In 2021 and 2022, a conditional offer in Durham Region often lost to a firm one, and buyers waived conditions to compete. Many of them paid for it. In the current market, with homes taking a month to sell and sellers accepting conditional offers, there is no competitive reason to carry that risk. Where a seller pushes back, a short condition period of three business days is usually a better compromise than waiving the condition entirely.
Other conditions worth considering
- Insurance. For older homes, rural properties and anything with a wood stove, knob-and-tube wiring or a history of claims, confirm that insurance is available at a reasonable premium.
- Well and septic. Non-negotiable on rural properties; see our guide to buying in Uxbridge and Port Perry.
- Sale of buyer's property. Lowest-risk path for move-up buyers, with the trade-off that the seller will almost always insert an escape clause.
- Lawyer review. A short condition allowing your lawyer to review the agreement, useful for complex properties, assignments or pre-construction.
Frequently asked questions
How long should a financing condition be in Ontario? Five business days is standard and allows for an appraisal. Three is tight but workable with a lender who is already engaged. Fewer than three days is a waiver in disguise.
Can a seller refuse a conditional offer? Yes, but in a balanced market most will negotiate the length of the condition rather than reject it outright. A seller who refuses any conditions on an older home is telling you something.
What is a status certificate and how much does it cost? It is the condominium corporation's disclosure package, capped by regulation at $100 plus applicable taxes, and the corporation has ten days to deliver it. The seller usually orders and pays for it.
This article is general information, not legal advice. Have every offer reviewed by your realtor and lawyer before signing.