What is the 'due diligence' period when buying a home in Ontario?
The "due diligence period" is the window of time after an offer is accepted during which the buyer satisfies their conditions — typically financing, home inspection, and for condos, status certificate review. It is not a formal legal term defined by Ontario statute, but it is commonly used to describe the conditional period in a real estate transaction.
During this period, you are actively investigating the property and your ability to finance it. Your inspector examines the home; your lender finalizes the mortgage application and may order an appraisal; your lawyer reviews the status certificate or flags any title concerns. At the end of the period, you either waive your conditions and proceed firm, or deliver notice that a condition was not satisfied and end the deal.
The due diligence period is the most active phase for the buyer. Use it well — book your inspector promptly, respond quickly to your lender's requests, and give your lawyer enough time to review documents. Do not assume the period is automatic or extendable without seller consent.
Key takeaways
- The due diligence period is the time to satisfy conditions after offer acceptance.
- Key tasks include home inspection, mortgage finalization, and status certificate review.
- Use the period actively — delays can cause you to miss your condition deadlines.
- Extensions require the seller's written consent and are not guaranteed.