- In plain terms, this condition says that the buyer's purchase of the new property only becomes firm if the buyer's own home sells — and, in many versions, actually closes — by a…
- Because this condition can tie up a property indefinitely from the seller's point of view, sellers who accept it typically insist on a companion clause, often called an escape clause or…
- From a seller's perspective, this condition introduces real uncertainty: the property may need to stay on the market, showings continue, and the seller can't fully commit to their own…
Buying a new home before you've sold your current one creates an obvious problem: what if you can't sell in time, or at a price that supports the new purchase? The sale of buyer's property condition is one way Ontario buyers address that risk, by making their offer on a new home conditional on their existing property selling, and often on that sale actually closing.
It's a useful tool, but it's also one of the least popular conditions from a seller's perspective, which shapes both how it's used and how sellers typically respond to it.
What the Condition Does
In plain terms, this condition says that the buyer's purchase of the new property only becomes firm if the buyer's own home sells — and, in many versions, actually closes — by a specified date. If the buyer's home doesn't sell in time, the buyer can walk away from the new purchase under the condition, generally without losing their deposit, subject to the exact wording used.
This protects a buyer from being contractually committed to two properties — the one they're buying and the one they still need to sell — without a plan for how to fund both.
The "Escape" or "Kick-Out" Clause Sellers Usually Add
Because this condition can tie up a property indefinitely from the seller's point of view, sellers who accept it typically insist on a companion clause, often called an escape clause or kick-out clause, that works roughly like this:
- The seller keeps the property actively listed and continues showing it to other buyers while the sale-of-buyer's-property condition remains outstanding.
- If the seller receives another offer they'd be willing to accept, the seller notifies the conditional buyer.
- The conditional buyer is then given a specified, short window to either remove — waive — their sale condition and firm up their offer, or let it lapse.
- If the buyer firms up in time, their deal proceeds and the seller's other offer is set aside. If not, the seller is free to proceed with the competing offer, and the original conditional deal ends.
The exact timeline and mechanics are set by the specific clause in the agreement — there's no fixed standard length, so this is an important detail to have your lawyer confirm before you sign.
Why Sellers Are Often Reluctant to Accept This Condition
From a seller's perspective, this condition introduces real uncertainty: the property may need to stay on the market, showings continue, and the seller can't fully commit to their own next purchase until the condition is resolved one way or another. In competitive seller's markets, many sellers simply won't accept offers with this condition at all, preferring an unconditional buyer or one with more straightforward financing.
Pros and Cons for Buyers
| Pros | Cons |
|---|---|
| Avoids carrying two properties, and potentially two mortgages, at once | Often rejected by sellers, especially in competitive markets |
| Reduces risk of being unable to fund the new purchase | An escape clause can force a fast decision on short notice |
| Gives a defined structure for an otherwise risky sequencing problem | May make an offer less competitive against unconditional buyers |
Making a Sale-Condition Offer More Attractive
Buyers who need this condition can sometimes improve their odds by pairing it with steps that reduce the seller's uncertainty. Listing their current home before or at the same time as making the offer, providing evidence that it's realistically priced and actively marketed, and being prepared to respond quickly if an escape clause notice comes in all help. None of this guarantees a seller will accept the condition, but it can make the offer more credible.
Frequently asked questions
Can I make an offer conditional on selling my current home even if it isn't listed yet?
It's possible to word a condition around simply listing the home rather than a completed sale, but most sellers prefer, and most standard clauses assume, that the buyer's property is already listed, since it makes the timeline more predictable.
What happens to my deposit if my current home doesn't sell in time?
If the condition isn't satisfied and lapses properly, or is triggered by an escape clause you don't firm up on, the deal generally ends without the buyer losing the deposit. This depends entirely on how the specific condition is worded, so it should be confirmed with your lawyer.
How much notice do I get if the seller receives another offer?
The notice period is set by the specific escape or kick-out clause in your agreement, not by a fixed rule. It can vary from deal to deal, so read, and understand, this clause carefully before you sign.
Is this condition common in a strong seller's market?
It tends to be far less common and harder to negotiate in competitive markets, where sellers often have less appetite for the uncertainty it introduces. It's more workable in more balanced or buyer-favourable markets.
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