How Offers Work in Ontario: Conditional, Firm, and Bully Offers Explained

An offer in Ontario is a legally binding document once accepted, called the Agreement of Purchase and Sale (APS). Whether it's "conditional" or "firm" determines whether either side can still walk away, and that distinction matters more than almost anything else in the offer itself.

Conditional vs. firm offers

A conditional offer includes one or more conditions, most commonly financing, home inspection, or (for a condo) status certificate review, that must be satisfied within a set window or the buyer can walk away and typically recover their deposit. A firm offer has no conditions: once the seller accepts it, both sides are locked in. Sellers generally prefer firm offers because there's no financing or inspection contingency that could still kill the deal.

What a bully offer is

A bully offer (also called a pre-emptive offer) is one submitted before the date a seller has set for reviewing all offers. Sellers aren't obligated to accept one, but they can, and when they do, listing agents are required under TRREB and RECO rules to notify anyone else who has booked a showing or registered interest that an offer is being considered early, so other buyers get a chance to submit their own. Bully offers are typically strong, often firm, and priced to end the process outright.

Deposits

A deposit is different from your down payment, it's a good-faith sum submitted with your offer, usually due within 24 hours of acceptance, and it's credited toward your down payment at closing. If a conditional offer falls through within its conditions, the deposit is typically returned; if a firm deal falls through after conditions are met, the deposit is generally at risk.

FAQ

What happens if my financing condition isn't met in time?

If you can't secure financing within the condition period and don't waive the condition, you can walk away from the deal and your deposit is typically returned, since the condition wasn't satisfied.

Can a seller accept a bully offer without telling other interested buyers?

No. If a seller accepts an offer before their stated offer date, the listing agent is required to notify anyone who has booked a showing or expressed interest that an offer is being reviewed, giving them a chance to respond before it's finalized.

Is a verbal offer binding in Ontario?

No. Real estate offers in Ontario must be in writing, on an Agreement of Purchase and Sale, to be enforceable.

This is a general explanation of common practice, not legal advice. Work with a licensed real estate professional and lawyer for guidance specific to your transaction.