What is a Conditional Offer?

When buying or selling a home in Ottawa, you’ll likely hear the term “conditional offer.” It’s one of the most common parts of a real estate transaction in Ontario, but if you’re new to the process, it can feel a little confusing.

Let’s break it down so you know exactly what it means, how long it lasts and why it’s important to understand.

What Does a Conditional Offer Mean?

A conditional offer is an agreement to purchase a home that comes with specific conditions attached. In other words, the buyer is saying, “I’ll buy this home but only if certain requirements are met.”

These conditions protect the buyer while still giving the seller a clear sense of where things stand. If the conditions are met within the agreed-upon timeframe, the offer becomes firm, meaning both parties are legally bound to close the deal.

If the conditions aren’t met, the buyer typically has the right to walk away without penalty.

Common Conditions in Ontario Real Estate

Here in Ottawa and across Ontario, some of the most common conditions you’ll see in a conditional offer include:

Financing Condition – Gives the buyer time to secure a firm mortgage approval from their lender.
Home Inspection Condition – Allows the buyer to hire a professional inspector to check for major deficiencies with the property.
Sale of Buyer’s Property Condition (commonly referred to as a First Refusal) – Gives the buyer time to sell their existing home before committing to the purchase.
Status Certificate Review (for condos) – Provides time for a lawyer to review the condo corporation’s financials and rules before finalizing the purchase.

Each of these conditions serves a purpose: they give the buyer peace of mind and help reduce risk before finalizing one of the largest financial decisions of their life.

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How Long Does a Conditional Offer Last?

The timeline for conditions is usually negotiated between the buyer and seller. In Ottawa’s real estate market, the most common condition period ranges from a few days up to a week.

Financing often requires 3–5 business days.
Inspections typically take 3–5 days as well.
Status certificate reviews for condos may take up to 10 business days since the condo corporation needs time to provide the documents.

The seller benefits from knowing the exact timeline. Once the conditions expire, the deal either becomes firm or falls through.

Can You Back Out of a Conditional Offer?

Yes, if the conditions aren’t satisfied, the buyer can walk away without penalty.

For example:

If the inspection reveals serious foundation problems, the buyer may choose not to proceed.
If financing isn’t approved, the buyer can legally exit the deal.

On the flip side, once the buyer waives their conditions, the offer becomes firm. At that point, both the buyer and seller are legally obligated to close on the property.

Why Conditional Offers Matter for Buyers and Sellers

For Buyers – Conditional offers provide a safety net. They ensure you’re not locked into a deal until you’ve double checked the property, your financing or any other important details.
For Sellers – While a firm offer is ideal, conditional offers still signal serious buyer interest. They provide a defined window where the buyer must either commit or move on, allowing you to plan your next steps.

In competitive markets, buyers sometimes choose to waive conditions to strengthen their offer. While this can make your offer more appealing, it also comes with risk. That’s why it’s important to weigh the pros and cons carefully with your REALTOR®.

Conditional Offers in Ottawa’s Market

In Ottawa, conditional offers are part of everyday real estate transactions. Whether you’re buying a single family home in Orleans, a downtown condo in Centretown or an investment property in Barrhaven, chances are conditions will likely play a role.

They’re particularly valuable in today’s market where financing rules are strict, homes vary in age and condition and buyers want to make informed decisions.

Searching for more advice about selling your home in Ottawa? Explore these related blogs.

Final Thoughts

A conditional offer is a powerful tool that balances protection and commitment in real estate transactions. It gives buyers the chance to do their due diligence while still moving forward in good faith, and it gives sellers a clear timeframe for when the deal will either firm up or fall through.

If you’re considering buying or selling in Ottawa, understanding conditional offers is essential. Every situation is unique, and the right advice can make all the difference.

Have more questions about conditional offers? Reach out to our team at Pilon Group; we’re here to guide you through every step of the process with confidence and expertise.