You’ve done the legwork. You secured your mortgage pre-approval, you found the perfect neighbourhood, and after countless viewings, you’ve finally walked into a house that feels like home. Now what? How do you transform your interest into a serious, formal intention to buy?

In Ontario, this crucial step is taken using a document known as the Agreement of Purchase and Sale (APS), often referred to simply as “the offer.” This is arguably the most significant document in the entire home-buying process. It’s a legally binding contract that outlines every detail of the transaction. Understanding its components is essential for any buyer.

This guide will take you on a deep dive into the standard Ontario Real Estate Association (OREA) Agreement of Purchase and Sale (Form 100), breaking down its key sections in plain English so you can make an offer with clarity and confidence.

Part 1: The Core of the Offer – Price, Deposit, and Irrevocability

The first page of the agreement contains the foundational elements that define your offer.

Purchase Price: This is the most straightforward number—it’s the price you are offering to pay for the property. This figure is the starting point for negotiations and may change through counter-offers between you and the seller.

Deposit: The deposit is a crucial part of an Ontario real estate transaction. It’s a sum of money you submit with your offer to show the seller you are a serious and committed buyer. Key things to know about the deposit:

  • It is typically 1-5% of the purchase price, but this can vary depending on the market.
  • It is held “in trust” by the listing real estate brokerage, not given directly to the seller.
  • If the deal closes successfully, the deposit amount is applied toward your down payment. If the deal falls through because you failed to meet your obligations, you risk losing your deposit.

Irrevocable Period: This is one of the most critical clauses for a buyer to understand. The “irrevocable” date and time sets a firm deadline by which the seller must respond to your offer. During this period, your offer cannot be revoked—you are legally bound to it. If the seller accepts and signs your offer within this timeframe, a binding contract is formed. If they don’t respond, or if they counter-offer, your original offer becomes void once the irrevocable period expires.

Part 2: Your Safety Nets – Conditions and Waivers

Few offers in real estate are made without conditions. These are clauses that make the agreement conditional upon certain events occurring, giving you “outs” if things don’t go as planned. This is the essence of a conditional offer in Ontario.

Financing Condition: This is the most common condition. It gives you a set number of days (typically 3-5 business days) to confirm with your bank or mortgage broker that you have secured the final financing needed to purchase the property. Even with a pre-approval, the lender must approve the specific property you are buying.

Home Inspection Condition: This condition allows you to hire a professional to conduct a thorough home inspection in Ontario. If the inspection reveals major issues that you are not comfortable with, this clause gives you the right to walk away from the deal without penalty, as long as it’s within the specified timeframe.

Once a condition is satisfied (e.g., you get your financing approved), you provide the seller with a “Waiver” or “Notice of Fulfillment.” When all conditions have been waived, the deal becomes a firm offer in Ontario and you are legally obligated to close the sale.

Part 3: What’s Included? The Battle of Chattels vs. Fixtures

This is a frequent source of post-closing disputes, so clarity is key.

  • Fixtures: These are items permanently attached to the property. Think of things like built-in shelving, light fixtures, the furnace, and toilets. Fixtures are automatically included in the sale of the home unless they are specifically excluded in the agreement. If a seller wants to take their prized dining room chandelier, they must write it into the “Fixtures Excluded” section.
  • Chattels: These are movable personal property items. Think of the refrigerator, stove, washer, dryer, and freestanding microwaves. Chattels are automatically excluded from the sale unless they are specifically included in the agreement.

The golden rule for buyers is simple: if you want it, put it in writing. Never assume an appliance or window covering is included. List every chattel you expect to receive in the “Chattels Included” section to avoid any misunderstandings.

Part 4: The Grand Finale – The Closing Date

The Completion Date, or closing date in Ontario, is the finish line. This is the date when ownership is officially transferred from the seller to you. On this day, your lawyer will transfer the funds (including your mortgage funds and the remainder of your down payment) to the seller’s lawyer. In return, the seller provides the keys to your new home. It’s also the day you’ll be responsible for settling all your buyer’s closing costs, such as land transfer tax and legal fees.

The Agreement of Purchase and Sale can seem like a daunting legal document, but it’s the foundational blueprint for your entire transaction. It protects both you and the seller by setting clear, detailed, and legally binding expectations. Working with an experienced real estate professional who holds a Buyer Representation Agreement (BRA) and a real estate lawyer is crucial. They will help you navigate every clause, ensuring your offer is structured to protect your interests as you complete the most important purchase of your life.