Accepting an offer on your home is a significant moment — but it's also the beginning of a process, not the end of one. Once you sign the Agreement of Purchase and Sale (APS), a legally binding contract exists between you and the buyer. Understanding what comes next, and what your obligations are as a seller during this period, helps you avoid costly mistakes before the deal closes. Here's a step-by-step breakdown of what happens after you accept an offer in Ontario.

When you accept an offer — meaning you sign the APS without counter-offering — you've entered into a binding legal agreement under Ontario contract law. The APS specifies the purchase price, deposit amount and deadline, closing date, included chattels and excluded fixtures, and any conditions the buyer has included. Both parties are now bound by its terms. Your listing agent keeps a copy; your real estate lawyer should receive one immediately.

Contact your lawyer as soon as an offer is accepted. Your lawyer begins reviewing title, preparing the transfer documents, and arranging mortgage discharge if you carry one. In Ontario, every real estate transaction requires independent legal representation — do not wait until a week before closing to engage your lawyer.

Conditional vs. Firm Offers: What Changes

If the buyer submitted a conditional offer — the most common scenario in the GTA — the APS contains conditions that must be satisfied or waived within specified timeframes before the deal becomes firm:

  • Financing condition: The buyer typically has 5 business days to confirm mortgage approval. You must allow the lender's appraiser access to your home during this period.
  • Home inspection condition: Usually 3–5 business days. You must provide reasonable access to the inspector. You cannot interfere with or obstruct the inspection.
  • Status certificate condition (condos only): The buyer's lawyer reviews the condo corporation's financials, reserve fund, and rules. Typically 10 business days after receipt of the status certificate.

During the condition period, you cannot accept another offer unless the buyer waives their conditions or the APS terminates. A conditional deal is not firm — either party may have an exit if conditions aren't satisfied. Once the buyer fulfills or waives all conditions and delivers a Notice of Fulfillment of Conditions, the deal becomes firm and binding.

If the buyer submitted a firm offer (no conditions), the deal is already binding from the moment of acceptance. The buyer typically has 24 hours to deliver the deposit.

The Deposit

The APS specifies when the buyer's deposit is due — typically within 24 hours of offer acceptance for firm deals, or within 24 hours of the deal going firm for conditional offers. The deposit (commonly 5% of the purchase price in the GTA) is held in the listing brokerage's trust account until closing. It's not yours until closing — but if the buyer defaults after the deal goes firm, you may be entitled to keep it as compensation for damages.

Your Obligations as a Seller Until Closing

Once the APS is signed, you have specific obligations that run until closing day:

  • Maintain the property: You must deliver the property in substantially the same condition as when the buyer viewed it. Damage that occurs between acceptance and closing — a roof leak, a flooded basement — must be disclosed and may need to be repaired before closing.
  • Keep utilities active: Don't cancel utilities or change services before closing. The buyer is entitled to verify the property functions as represented.
  • Provide access for inspections and appraisals: Lenders typically send an appraiser. You must provide reasonable access.
  • Not re-list or market the property: Once under firm contract, the property is off-market. Any sale to a third party during this period would constitute breach of contract.
  • Complete agreed-upon work: If the APS required you to complete specific repairs or remove specific items before closing, do it.

What Your Lawyer Does After Acceptance

Your real estate lawyer begins a defined set of tasks once the APS is in hand. They conduct a title search to identify any encumbrances, liens, or defects on title that need to be resolved before closing. They calculate the mortgage discharge amount from your lender (the exact amount you owe to fully pay out your mortgage) and arrange for the discharge to register on closing day. They prepare the Transfer/Deed of Land (the document that conveys ownership to the buyer), Statement of Adjustments (which allocates property taxes, utilities, and other costs prorated to the closing date), and Direction re Funds (which specifies where the sale proceeds go — first to pay out your mortgage, then to you).

Pre-Closing Buyer Walkthrough

The APS typically gives the buyer the right to conduct a pre-closing walkthrough — usually 24–48 hours before closing — to verify the property is in the agreed condition, included chattels are present, and no new damage has occurred. If the buyer finds issues at this stage, they may raise them with their lawyer before the closing proceeds. Common problems: a seller has taken fixtures that were supposed to stay (light fixtures, built-in appliances), or damage has occurred since the offer was accepted.

Closing Day

On the closing date, your lawyer and the buyer's lawyer exchange documents and funds electronically. Your lawyer receives the purchase price funds, pays out your mortgage balance to discharge it, deducts their fees and any outstanding property tax or adjustments, and remits the net proceeds to you. The Transfer/Deed registers in the buyer's name in the Ontario land registry system. Once registration is complete, the deal is closed. You hand over the keys — typically through the real estate agents or directly — and the buyer takes possession at the time specified in the APS.

The entire process from accepted offer to closing typically runs 30–90 days, though APS terms vary. Understanding the documents required to sell your home and what you must disclose as a seller helps you avoid problems before they reach this stage.

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FAQ

Can I back out after accepting an offer in Ontario?

Not without consequences. Once an APS is signed by both parties, it's a binding legal contract. Backing out without legal justification exposes you to the buyer's claim for damages, which can include the cost of alternative housing, carrying costs, and legal fees. If the deal hasn't gone firm yet (buyer still in condition period), the buyer can exit — but the seller generally cannot. Consult your lawyer immediately if you're considering this path.

What if the buyer's financing falls through?

If the deal is still conditional on financing and the buyer cannot secure a mortgage, they notify you before the condition deadline, the deal terminates, and the deposit is returned. Once the deal has gone firm — the buyer has waived the financing condition — a financing failure does not give the buyer an automatic right to exit. The deal is binding. If they walk, you may retain the deposit and pursue additional damages.

Can I accept another offer while under a conditional agreement?

You can use an Offer Schedule B (commonly called a "bump clause" or escape clause) to continue marketing during a condition period. If a better offer comes in, you notify the first buyer and give them 24–48 hours to firm up their deal. Without this clause in the original APS, you generally cannot accept another offer during the condition period.

How long is the typical closing period in Ontario?

Most residential closings in the GTA run 30–90 days from accepted offer to closing. First-time buyers sometimes need longer to arrange financing. If you need a specific closing timeline — for coordinating a purchase of your next home, for example — negotiate this in the APS before signing. Closing date changes after signing require mutual written agreement.

What happens to my mortgage when I sell?

Your existing mortgage is discharged on closing day. Your lawyer requests a mortgage payout statement from your lender showing the exact amount required to close the mortgage, including any prepayment penalties. This amount is deducted from the sale proceeds at closing before you receive your net funds. Prepayment penalties vary significantly by lender and mortgage type — contact your lender early in the selling process to understand what you'll owe.