What should I check before signing an Agreement of Purchase and Sale in Ontario?
The Agreement of Purchase and Sale sets the price, deposit, closing date, and conditions, and it becomes binding once both sides sign it. Have a lawyer review it before your conditions expire, not after you've already committed.
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What is an Agreement of Purchase and Sale, exactly?
It's the contract that controls the whole transaction: price, deposit amount, closing date, what's included, and any conditions. Most GTA buyers use the Ontario Real Estate Association's standard form, with extra terms added in a schedule attached to it. Once both sides sign, it's binding, subject only to any conditions written into it.
What are conditions, and which ones matter most?
Conditions let you cancel the deal if something isn't met by a set date. The two most common:
- Financing: lets you walk away if you can't get mortgage approval on acceptable terms, usually within 5 to 10 business days.
- Home inspection: lets you walk away, or renegotiate, if the inspection turns up a serious problem.
Condos add a status certificate review condition. Read every condition's wording carefully. Vague wording like "satisfactory to the buyer" is common, but it still needs to be exercised properly and in writing before the deadline.
What is the irrevocable date?
It's the deadline for the other side to accept your offer. If they haven't signed back by that date and time, the offer expires and neither side is bound. It's separate from your conditions, which run after the agreement is already signed.
What should I check about the closing date and included items?
Confirm the closing date works with your financing, moving plans, and any home you're selling at the same time. Check the list of included items and fixtures closely: appliances, window coverings, light fixtures. Anything not listed as included is assumed to stay with the seller unless the agreement says otherwise.
Does HST apply to my purchase?
Usually not, for a resale home. HST typically applies to newly built homes and some commercial property, not resale residential purchases. If you're buying new construction, the agreement needs to say clearly whether HST is included in the price or added on top. See our new builds and Tarion page for more on new home purchases.
Can I back out after I sign?
Only if a condition in your favour isn't met and you cancel properly, in writing, before its deadline. Once conditions are satisfied or waived, the agreement is firm, and walking away can put your deposit at risk and expose you to a claim for damages.
Where to go from here
- Ask your lawyer to review the agreement and schedule before you sign, if there's time, or immediately after.
- Diarize every condition deadline. Missing one can mean losing the right to cancel.
- Confirm the included items list matches what you were shown or promised.
People also ask
Can my lawyer review the agreement before I sign it?
Yes, if you have time before your irrevocable date. Many buyers sign first under time pressure and get it reviewed right after, but earlier is safer.
What happens if I miss my financing condition deadline?
The condition may be treated as waived, meaning you're bound to close even without approved financing. Act before the deadline, not after.
Is a verbal promise from the seller enforceable?
Generally no. If it matters, get it added to the agreement in writing before you sign.
What if the seller won't remove an item I was told was included?
Talk to your lawyer. It depends on exactly what the agreement says was included, not what was said in conversation.
Sources
This page is general information about Ontario law as of September 2026. It isn't legal advice about your situation.