Can I back out of a real estate deal after I've waived my conditions?
Once all conditions in your Agreement of Purchase and Sale have been waived or satisfied, the deal is firm and legally binding. At that point, backing out is not simply a matter of losing your deposit — the seller can sue you for additional damages. If the seller eventually sells the property to someone else at a lower price, you could be liable for the difference, plus the seller's carrying costs, legal fees, and other losses.
There are very narrow circumstances where a buyer may have grounds to terminate — for example, if the seller has materially misrepresented the property or breached a term of the agreement — but these situations require legal advice and are not guaranteed to succeed.
The short answer is: once the deal is firm, you are committed. If you have concerns about the property or your ability to close, raise them before waiving your conditions, not after. Speak with a lawyer as soon as possible if you are in a firm deal and are having second thoughts.
Key takeaways
- Waiving conditions makes the deal legally binding — there is no simple exit.
- The seller can sue for their full losses, not just keep your deposit.
- Seller misrepresentation may provide a basis to challenge the contract, but it requires legal advice.
- Always resolve concerns during the condition period, not after.