Making an offer is about more than the price
When you make an offer on a home in Ontario, you sign a document called the Agreement of Purchase and Sale. In simple words, it is the contract that says: this is the home, this is the price, this is the deposit, and this is the closing date.
A condition is a safety check written into that contract, with a deadline. It says, in plain language: "I want to buy this home, but first I need to check this one thing. If the check does not work out by the deadline, I can walk away."
This article is for buyers in London, Ontario who are making an offer with a mortgage, or buying a condo. If you are paying all cash, some of these checks matter less, but the idea is the same: never sign something you do not understand. This is general information, not legal advice. Your lawyer confirms the exact wording of your offer.
The surprise most first-time buyers do not know
A pre-approval is not a final approval. A pre-approval says the lender likes your finances in general. It does not mean the lender has approved this specific house. The lender still has to approve the house itself, often after an appraisal. An appraisal is simply the lender's own check of what the home is worth to them.
That is why a condition matters so much. It gives you time to find out the truth about the money and the house, before the deal becomes final.
1. The financing condition: "Can I really get this mortgage, for this house?"
This condition gives you a few business days, the exact number is written in your offer, to get a firm mortgage commitment for this home.
It protects you in two common cases. First, if the lender says no to this property. Second, if the appraisal comes in lower than your offer price. In that case, the lender may lend based on the lower value, and you would need more cash to cover the gap. With a financing condition, you can step back under the terms of the contract instead of being stuck.
2. The inspection condition: "Is the house healthy under the surface?"
A home inspector is a trained professional who checks the parts of a home you cannot easily judge in a showing: the roof, the foundation, the electrical system, the plumbing, and the heating and cooling.
If the inspection finds a serious problem, you usually have three choices, depending on what your contract says: ask the seller to fix it, ask for a price change, or walk away under the condition. Without this condition, you are agreeing to buy the home as it is, problems included.
3. The status certificate condition: only for condos
If you are buying a condo, your lawyer reviews a package called the status certificate. In simple words, it is the building's report card: its budget, its savings for big repairs (called the reserve fund), any special one-time charges coming (called special assessments), its rules, and any legal problems.
This check is only for condo buyers. If you are buying a detached house, a semi-detached house, or a townhouse that is not a condo, this condition does not apply to you.
4. The sale of your current home condition: only if you already own
If you already own a home and you need to sell it first, this condition says your purchase depends on your sale. It protects you from owning two mortgages at once.
Sellers often add an escape clause to this kind of offer. In simple words, the seller can keep showing the home, and if another buyer comes along, you get a short window, written in the offer, to remove your conditions and make the deal firm, or step aside. That window is short, so this condition needs a clear plan, not just hope.
What is a deposit, and what is a "firm" deal?
A deposit is good-faith money. It shows the seller you are serious. It is usually held in trust by the listing brokerage, which means it is kept safe in a separate account, not handed straight to the seller. At closing, it normally counts toward your purchase price, so it is not an extra cost on top of the price. In many Ontario offers it is around 5% of the price, but the amount is negotiable and it is always written in your offer.
A deal becomes "firm" when every condition is met or waived in writing. Waiving a condition means you sign a paper saying, "I am going ahead anyway," even if the check is not fully done. Once you waive it in writing, you cannot use that condition later to cancel.
Here is the part to remember. If a condition is not met by its deadline, then under standard contract wording the deal ends and the deposit is returned in full. In practice, the actual release still needs signed paperwork from both sides, so in a disagreement it can take time. That is one more reason to have a lawyer involved early.
If the deal is firm and you simply change your mind, that is different. Cold feet alone is not a legal exit, and your deposit can be at risk. A firm offer is a promise to close.
Why this matters right now in London, Ontario
In September 2026, the London and St. Thomas region recorded 561 sales, a benchmark price of $552,500, and 5.9 months of inventory, according to the London and St. Thomas Association of REALTORS (LSTAR). In simple words, 5.9 months of inventory means there were enough homes for sale to last about six months at that sales pace, so buyers had more choice than in a bidding-war market.
More choice does not mean every seller will accept conditions. A seller can still say no to a conditional offer and choose a firm offer instead. But in a market with more choice, asking for a safety check is a reasonable conversation to have, not something to be embarrassed about. Some buyers still waive conditions to win a home. That can work, but only if you understand the risk you are taking with your own eyes open.
Before you sign, ask these three questions
1. Which conditions are in my offer, and what is the exact deadline for each one?
2. What happens to my deposit if a condition is not met?
3. What am I giving up if I waive a condition to make my offer stronger?
If you cannot answer those three questions in simple words, stop and ask the agent helping you and your lawyer to explain them again. A good offer is one you understand completely before you sign it.
If you are thinking about buying in London, Ontario and you want someone to walk through your offer, condition by condition, in plain language, Paola Cano, Real Estate Broker, and Jose Ramirez would be glad to help.
— Paola Cano & Jose Ramirez, Thrive Realty Group Inc., Brokerage, London, Ontario.