Offer Clauses Every Ontario Home Buyer Should Know:
Many buyers assume the Offer is just a preliminary step, with a formal contract to follow afterward — but in Ontario, once the seller accepts your Offer, the Offer itself becomes the binding purchase and sale agreement. There’s no second contract. Getting a single clause wrong can cost you tens of thousands of dollars.
Based on real residential transactions we’ve handled, H. Law Firm has put together these 4 must-include clauses for your Offer:
① For condo buyers: Structural warranty clause. Require the seller to warrant that the unit’s structure has not been altered. If there has been a structural change, the buyer has the right to terminate the agreement and seek damages.
② For house buyers: Leased equipment clause. Spell out which leased equipment (water heater, furnace, etc.) the seller must buy out before closing, and which the buyer will take over and continue paying rental on. Buyout costs typically run between $5,000 and $20,000, and this must be written into the Offer clearly.
③ For pool buyers: Permit + holdback clause. Require the seller to provide the pool permit and warrant that the pool is in working order. If closing happens during winter, you can require the seller to leave a portion of the funds in the law firm’s trust account, to be released only after the pool is inspected the following season — if it fails inspection, you can claim repair costs from the seller.
④ Condition of fixtures: “Good Working Order” vs. “As Is.” “As Is” means the seller takes on no repair responsibility whatsoever — whatever condition it was in when you viewed the property is what you get. Make sure your Offer clearly states the condition you’re requiring for each fixture.
All of the recommendations above come from real purchase and sale transactions handled by H. Law Firm, and each clause is legally enforceable. Any term both parties agree on can be written into the contract and will be protected by law.
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📍 Service area: Greater Toronto Area (GTA) · Province-wide Ontario
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