Can You Back Out of a Firm Offer on a House in Ontario?

The question: “Can I back out of a house offer in Ontario?” is a common search question from buyers. Here is the general picture; your lawyer has the final word on any specific agreement.

Short answer: once all conditions are waived or met, an agreement of purchase and sale is a binding contract. If you refuse to close, you can lose your deposit and the seller can sue for damages, for example if they later sell for less. There is no cooling-off period for resale homes in Ontario.

Firm vs conditional

A conditional offer lets you walk away if a stated condition (financing, inspection, status certificate review, sale of your home) is not satisfied by the deadline. Once you sign a waiver or the deadline passes in the way the agreement says, the deal is firm. See Conditional offers in the GTA market for how conditions work in the current market.

The only built-in cooling-off period is for new condos

Buyers of new pre-construction condominium units from a builder have a 10-day rescission period under the Condominium Act, 1998 (Ontario). Resale homes, freehold or condo, have none. More in Ontario pre-construction condo cooling-off period.

If you are worried you cannot close

• Call a real estate lawyer right away; options are best before the closing date.
• Talk to your lender or a broker about alternatives if your financing changed.
• Ask whether the seller would agree to a mutual release or a later closing date; any change must be in writing.

For guidance on working with a brokerage and your rights as a buyer, see the Real Estate Council of Ontario (RECO).

Need a hand with this?

Call or text me at 647-667-5555. I work across Richmond Hill, Markham, Vaughan and the rest of York Region, in English and Persian (فارسی).

Related reading

• Conditional offers in the GTA market
• Ontario pre-construction condo cooling-off period
• Multiple offers in Ontario: sharing offer details

Sources

• Ontario, Condominium Act, 1998
• Real Estate Council of Ontario

All sources accessed October 2026.

Farshad Fazaeli, International Realty Firm, Inc., Brokerage. Phone 647-667-5555. This article is general information, not legal, tax or mortgage advice. Market figures are board-wide summaries and are not an appraisal of any property. Not intended to solicit buyers or sellers already under contract with a brokerage.