What does irrevocability mean in an Ontario real estate offer?

Every Ontario residential offer includes an irrevocability period — a deadline by which the seller (or buyer, if it's a counter-offer) must accept, reject, or sign back the offer. During that window the offering party cannot withdraw or change their offer. If the deadline passes without a response, the offer expires automatically and neither party is bound.

For sellers, this means if a buyer submits an offer that is irrevocable until, say, 11:59 p.m. on a given day, you have until that moment to respond. If you sign back a counter-offer, the irrevocability shifts to the buyer, who must respond within the period you set in your counter.

Setting realistic irrevocability periods is important in competitive markets. A very short irrevocability period (e.g., a few hours) puts pressure on the other side to decide quickly and is commonly used in multiple-offer situations. Your real estate agent and lawyer can advise on appropriate periods for your specific situation. Understanding irrevocability prevents confusion about when — and whether — a binding contract has been formed.