What does it mean when a real estate deal is 'conditional' in Ontario?

A conditional deal means the Agreement of Purchase and Sale has been signed by both buyer and seller, but one or more conditions must be satisfied (or waived) before the deal becomes firm and binding. During the conditional period neither party can freely walk away — the seller cannot accept another offer, and the buyer cannot withdraw arbitrarily. The buyer must either satisfy the conditions, waive them, or properly invoke them to exit the deal.

Common conditions in Ontario residential sales include a financing condition (the buyer has a specified number of business days to arrange a mortgage), a home inspection condition (the buyer has the property inspected by a qualified inspector and is satisfied with the results), and for condominiums, a status certificate review condition.

If a condition is properly triggered — meaning the buyer genuinely cannot satisfy it within the timeframe — the deal collapses, the deposit is returned to the buyer, and the seller is free to relist. If the buyer waives the condition (agrees to proceed anyway), the deal becomes firm. Once firm, it is fully binding on both sides. As a seller, receiving a conditional offer is normal, but multiple conditions or long timeframes can delay your ability to move forward confidently.