What is the '48-hour clause' or escape clause in an Ontario real estate deal?

The "48-hour clause" — more precisely called a seller's right of first refusal or escape clause — is a provision sometimes added when a seller accepts a conditional offer. It allows the seller to continue marketing the property. If a new, acceptable offer comes in, the seller can give the current buyer written notice (often 24 or 48 hours, as specified in the clause) to waive their outstanding conditions and proceed firm, or to let the deal collapse so the seller can accept the competing offer.

This clause protects sellers who accept conditional offers from being locked in indefinitely while the buyer satisfies conditions. For buyers, it means you may face a hard deadline to make a final commitment — often with incomplete information — if the seller finds another interested party.

If you receive a 48-hour notice, the clock starts immediately and typically cannot be extended. You must decide whether you are prepared to waive your conditions without fully resolving them. If your conditions were for financing or inspection and you have not completed those, waiving under pressure carries real risk. Always understand this clause before you sign an offer that includes it.