What should an environmental condition clause say in an Ontario offer to purchase?

An environmental condition clause in an Ontario Agreement of Purchase and Sale is what gives a buyer the contractual right to investigate a property's environmental condition before being locked into closing. At minimum, it should specify a realistic deadline for completing at least a Phase 1 Environmental Site Assessment, state clearly that the buyer's obligation to close is conditional on being satisfied with the results in the buyer's sole discretion, and set out what happens if the Phase 1 recommends a Phase 2, including whether the deadline can be extended to accommodate it.

It should also address access, confirming the seller will allow the buyer's consultants reasonable access to the property to conduct the assessment, and clarify who bears the cost of the assessment itself. Finally, it should state the consequence of a negative or concerning result plainly, whether that's a right to terminate, a right to negotiate a price adjustment or remediation commitment, or both. A vaguely worded environmental clause is a common source of disputes, so buyers should have a lawyer review the specific wording rather than relying on generic boilerplate, particularly on any property with a history suggesting real contamination risk.