What happens if I can't satisfy a condition in my Ontario offer?

If a condition in your Agreement of Purchase and Sale cannot be satisfied — for example, your financing was not approved or the home inspection revealed serious defects — you must deliver written notice to the seller by the condition deadline stating that the condition was not met and that you are not proceeding. This written notice is typically called a "notice of non-waiver" or a similar term depending on how the condition clause was drafted.

Upon proper delivery of that notice, the deal is terminated, and you are entitled to the return of your deposit held in trust. The seller cannot retain your deposit if the condition genuinely failed and you followed the notice requirements properly.

It is important not to simply go silent when a condition cannot be satisfied. If you miss the deadline without delivering notice, the offer may become firm by operation of the APS terms, or you may trigger a dispute about whether the contract is still alive. Always confirm the exact notice requirement in your condition clause and deliver notice in a documented way — by email with read receipt, or through your agent — before the deadline.