Can I make my offer conditional on selling my current home in Ontario?
Yes, you can include a condition in your offer that makes it conditional on the sale of your existing home. This is sometimes called a "sale of buyer's property" condition. It protects you from being obligated to purchase the new property if you cannot sell your current home in time and need the proceeds for the down payment.
However, this condition is generally unattractive to sellers, especially in competitive markets. If a seller accepts your offer subject to your home sale, they are often protected by a "right of first refusal" or "48-hour escape clause." This means that if another buyer makes an offer, the seller can give you notice — typically 24 to 48 hours — to either waive the condition and proceed firm, or let the deal collapse so the seller can accept the competing offer.
The right timing and structure of this condition depends on your financial situation, your existing home's marketability, and the local market. A real estate lawyer can help you understand your obligations if the escape clause is triggered and you need to make a rapid decision.
Key takeaways
- A sale-of-buyer-home condition protects you if you need sale proceeds to close.
- Sellers often counter with a 24–48-hour escape clause if another offer arrives.
- If the escape clause is triggered, you must decide quickly whether to waive or walk.
- This condition is less competitive in hot markets; consider your options with your lawyer.