A firm offer — sometimes called an unconditional offer — is an Agreement of Purchase and Sale with no conditions, or one where all conditions have been waived. Once an offer is firm, both buyer and seller are legally committed to complete the transaction on the agreed terms.
Two paths to a firm deal
Submitting without conditions: Some buyers choose to waive conditions at the outset — submitting a firm offer from the start. This is common in competitive situations where the seller is choosing between multiple offers and a conditional offer is less attractive. The deal is firm the moment both parties sign.
Waiving conditions during the conditional period: More common in less competitive situations. The offer is accepted with conditions, the buyer completes their due diligence (arranges financing, conducts an inspection), and then signs waivers removing each condition. When all conditions are waived, the deal becomes firm.
What "firm" means legally
Once a deal is firm, both parties are bound to close on the agreed date at the agreed price under the agreed terms. Walking away at this point — unless the other party defaults — puts you in breach of contract. The consequences:
For the buyer: Forfeiture of the deposit is the typical first consequence. Beyond that, the seller may sue for additional damages — the difference between your agreed price and whatever the property eventually sells for, plus carrying costs. In practice, most sellers settle for the deposit rather than pursue litigation, but the legal exposure is real.
For the seller: If the seller defaults — refuses to close, fails to deliver clear title, doesn't vacate — the buyer can sue for specific performance (forcing the sale) or damages.
The deposit after firming up
The deposit was paid when the offer was accepted. If the deal was conditional and you waive all conditions, the deposit is already held in trust. It applies toward your down payment on closing. If you then walk away without legal justification after firming up, the deposit is forfeited to the seller.
When it makes sense to submit a firm offer
Waiving conditions isn't reckless if done with preparation:
Financing: If your pre-approval is strong, the property is standard, and you have the down payment and closing costs in liquid accounts, the financing risk is low. Speak with your mortgage broker before submitting — they'll tell you honestly whether this specific property is a candidate for a firm offer.
Home inspection: If the seller permits a pre-offer inspection — a walk-through with your inspector before submitting — you can gather enough information to make a firm offer with meaningful (though not complete) knowledge of the property's condition. If no pre-offer inspection is available, waiving the inspection condition means accepting the property as-is.
Status certificate (condos): For condos, the status certificate review should not be waived. If the seller has a recent status certificate (within 30 days) available before the offer date, have your lawyer review it before submitting. This allows a firm offer while still protecting yourself from condo corporation issues.
Firm does not mean irrevocable
A firm deal can still be terminated by mutual agreement — if both parties agree in writing to cancel the agreement, the deal is off and the deposit is returned as agreed. What firm means is that neither party can unilaterally exit without legal consequence. Mutual terminations do happen when circumstances change and both sides prefer a clean exit over a disputed close.