A firm offer in Ontario real estate is an Agreement of Purchase and Sale (APS) that has no remaining conditions to satisfy — it is fully binding on both parties. The deal cannot be cancelled without the other party's consent (or a breach for which damages are owed). Once firm, the buyer and seller move to closing through their real estate lawyers. Understanding what "firm" means is critical to managing risk and timeline.
In this guide, we cross-reference What Is a Clean Offer?, What Is APS in Real Estate?, and How to Buy a House in Ontario — click through whenever you want to go deeper on a related concept.
How an Offer Becomes Firm
An offer goes firm in one of two ways:
- It is accepted with no conditions in the first place (a clean offer accepted by the seller).
- It is accepted with conditions, and all conditions are waived or fulfilled within their timelines.
Common conditions in the GTA include financing (5–10 business days), home inspection (5 business days), status certificate review (10 business days for condos), and sale of buyer's property.
What Happens at the Moment of Firm
- Both parties are legally bound to close.
- The deposit is irrevocably held in trust.
- Buyer's lawyer is engaged formally and begins title search.
- Seller's lawyer prepares the Statement of Adjustments.
- Buyer binds home insurance.
- Seller schedules the move-out.
Can a Firm Offer Be Cancelled?
Only by mutual written agreement (a Mutual Release), or as a result of a fundamental breach. Buyers who walk from a firm deal can lose the deposit and be sued for damages — typically the difference between the contract price and the eventual resale price, plus carrying costs.
Firm vs Conditional vs Clean
| Term | Meaning |
|---|---|
| Conditional | Accepted but contingent on conditions being satisfied/waived. |
| Clean | Submitted with no conditions to begin with. |
| Firm | Binding with no outstanding conditions — either clean from acceptance or conditional that has gone firm. |
Going Firm and Releasing Deposit
In Ontario, the deposit is delivered to the listing brokerage trust account within 24 hours (or as the APS specifies). Upon firm, the deposit is held in trust until closing and credited toward the purchase price.
Frequently Asked Questions
Can I back out of a firm offer in Ontario?+
Only by mutual written agreement with the seller, or by accepting the legal consequences of breach (deposit forfeit and potential damages). Firm means binding.
What is the difference between a firm and conditional offer?+
A conditional offer has conditions still to satisfy (financing, inspection, status). Once those are waived or fulfilled, the offer goes firm and is fully binding.
How long does it take an offer to go firm?+
Conditional offers commonly go firm within 5–10 business days, matching the financing and inspection windows. Clean offers go firm at the moment of acceptance.
What happens to my deposit on a firm offer?+
It stays in the listing brokerage's trust account and is credited toward the purchase price at closing. If you breach a firm deal, you can lose the deposit and be sued for additional damages.
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Work With a Top Toronto Real Estate Agent
Before you go firm on a Toronto-area home, get Aldo's review of the APS, the comparables, and your inspection or financing strategy. Mistakes at this stage are expensive.