What Actually Happens After You Accept an Offer on Your Home in Ontario?
You accepted an offer on your home, congratulations!
For many Ontario homeowners, this is the moment when it feels like the hard part is over. The showings are done, you’ve negotiated the price and terms, and you finally have an accepted Agreement of Purchase and Sale.
But are you officially sold? Can you start packing? When do you get your money? And what happens between accepting the offer and handing over the keys? There are still several important steps to get through before your sale officially closes. Here’s what Ontario home sellers can generally expect after accepting an offer.
1. The Buyer Delivers Their Deposit
Once an offer has been accepted, the buyer will typically be required to provide a deposit within the timeframe outlined in the Agreement of Purchase and Sale. The deposit is generally held in trust by the real estate brokerage specified in the agreement until closing. One important distinction: the deposit is not the same thing as the buyer’s down payment.
The deposit forms part of the money the buyer is putting toward the purchase, but its immediate purpose is to demonstrate the buyer’s commitment to the transaction. As the seller, you don’t receive this money when the offer is accepted. It remains in trust and is dealt with as part of the closing process.
2. The Buyer Works Through Their Conditions
If you’ve accepted a conditional offer, the home isn’t sold firm yet. Common buyer conditions in Ontario include:
✓Financing
✓Home inspection
✓Status certificate review for a condominium
✓Sale of the buyer’s existing property
✓Insurance
✓Well or septic-related conditions on rural properties
The conditions, deadlines and wording will depend on the individual agreement. During this period, you’ll often hear your home described as “sold conditional.” The buyer then has the specified amount of time to satisfy themselves with their conditions and take whatever steps are required under the agreement to waive or fulfill them.
3. The Home Inspection May Take Place
If the offer includes a home inspection condition, the buyer will typically arrange an inspection during their conditional period. The inspector may evaluate accessible components of the home such as the roof, foundation, electrical system, plumbing, heating and cooling systems, attic and other major components. A home inspection doesn’t automatically mean the buyer is going to ask you to repair everything the inspector finds.
Every home has imperfections.
Depending on the wording of the condition and what is discovered, the buyer may decide they’re satisfied and proceed, raise concerns with their agent, attempt to negotiate something further, or choose not to proceed if permitted under their condition. This is one reason it’s helpful for sellers to have an experienced agent involved after the offer is accepted, the negotiation isn’t necessarily finished just because you’ve agreed on a price.
4. The Buyer Finalizes Their Financing
A financing condition gives the buyer time to confirm that they’re comfortable proceeding with their financing arrangements. This can involve more than simply getting a mortgage pre-approval. The lender may also need to approve the property itself and could require additional documentation or an appraisal. An appraisal is particularly important for sellers to understand. If a lender’s appraisal comes in below the agreed purchase price, it doesn’t automatically change your sale price. However, it may create a financing challenge for the buyer because their lender may base financing on the appraised value.
How that affects the transaction depends on the buyer’s circumstances and the terms of the agreement.
5. The Conditions Are Fulfilled or Waived
Once the applicable conditions have been dealt with according to the agreement, the transaction can become firm.
This is a major milestone.
A firm sale generally means the buyer and seller are contractually committed to completing the transaction, subject to the terms of their Agreement of Purchase and Sale. You’ll often see the SOLD sign go up around this stage. It’s exciting, but there’s still work to do before closing day.
6. The Paperwork Goes to the Lawyers
After the sale is firm, the transaction documents are provided to the lawyers handling the closing. Both the buyer and seller normally have their own lawyer. Your lawyer handles the legal side of transferring ownership and will work through matters such as:
✓Reviewing the transaction documents
✓Preparing closing documents
✓Addressing title-related matters
✓Obtaining mortgage payout information, where applicable
✓Calculating adjustments
✓Receiving and distributing closing funds
✓Paying out amounts that need to be discharged from the sale proceeds
✓Completing the transfer of ownership
If you don’t already have a real estate lawyer, this is something your Realtor can usually help you arrange.
7. You Prepare the Home for Closing
Now it’s time to get serious about moving. The property needs to be left in the condition required under your Agreement of Purchase and Sale. Depending on your agreement, that can mean removing your belongings and garbage, leaving agreed-upon fixtures and chattels, and making sure anything specifically included in the purchase remains at the property. This is also a good time to start organizing:
✓Movers
✓Utility changes
✓Insurance changes
✓Mail forwarding
✓Keys and garage door remotes
✓Alarm information
✓Any documents or items you’ve agreed to leave for the buyer
Don’t assume an item can be removed just because you purchased it.
Items such as light fixtures, wall-mounted equipment, mirrors, appliances or other attached items can sometimes create confusion. Your Agreement of Purchase and Sale should identify what’s included and excluded. When in doubt, ask your Realtor before removing it.
8. The Buyer May Have a Final Visit
Many Ontario Agreements of Purchase and Sale give the buyer the right to revisit the property before closing. These visits aren’t another home inspection. They’re generally an opportunity for the buyer to view the property again, take measurements, plan furniture placement, bring contractors through or confirm aspects of the home’s condition before closing. Your agreement will specify what visits, if any, the buyer is entitled to.
9. You’ll Meet With Your Lawyer Before Closing
Prior to closing, your lawyer will arrange for you to sign the necessary documents. Your lawyer can also provide you with an estimate or breakdown of the financial side of the transaction. Your sale proceeds won’t simply be:
Sale Price – Mortgage = Money in Your Bank Account
There can be several adjustments and expenses involved, including your mortgage payout, legal fees, real estate commission and HST, property tax adjustments and potentially other transaction-specific costs. Your lawyer will prepare the final calculations based on your transaction.
10. What Actually Happens on Closing Day?
This is the part sellers are often surprised by: Closing day doesn’t necessarily mean handing someone the keys at 9:00 a.m.
Behind the scenes, the buyer’s lawyer, seller’s lawyer, lenders and other parties are completing the financial and legal steps required to close the transaction. Once the required funds and documents have been exchanged and the transfer has been registered, the transaction is considered closed. The buyer can then receive access to the property in accordance with the closing arrangements. As the seller, you should plan to be completely moved out by the time required under your agreement and your lawyer’s instructions.
11. When Does the Seller Get Their Money?
Your lawyer receives the closing funds and handles the required payouts and adjustments. For example, they may need to pay out an existing mortgage or other amounts associated with the property and transaction. Once everything required for closing has been completed, the remaining net sale proceeds are provided to you according to your lawyer’s arrangements. Your lawyer is the best person to explain the exact timing and financial breakdown for your particular closing.
So, How Long Does All of This Take?
There’s no standard amount of time between accepting an offer and closing. A transaction might close in a few weeks, while another could have a closing date several months away. The important dates are established in your Agreement of Purchase and Sale. A simplified seller timeline might look like this:
Offer Accepted → Deposit → Conditional Period → Firm Sale → Lawyer & Closing Preparation → Buyer Visits → Moving → Closing Day → Funds Released
Frequently Asked Questions About Selling a Home in Ontario
Is my house sold as soon as I accept an offer?
Not necessarily. If the offer contains conditions, the property is generally considered sold conditional until those conditions have been dealt with according to the Agreement of Purchase and Sale. An unconditional accepted offer, or a transaction where the conditions have subsequently been waived or fulfilled, may constitute a firm sale.
Can a buyer back out after an offer becomes firm?
A firm Agreement of Purchase and Sale is a binding contract. A buyer generally cannot simply change their mind without potentially serious legal and financial consequences. If either party is considering not completing a firm transaction, they should obtain legal advice immediately.
Do sellers have to fix everything found during a home inspection?
Not automatically. What happens after an inspection depends on the inspection condition, the findings, the Agreement of Purchase and Sale and any subsequent negotiations between the parties.
Can I take my appliances when I move?
It depends on what your Agreement of Purchase and Sale says. If appliances or other items were included in the sale, they generally need to remain. Review the inclusions and exclusions with your Realtor before moving anything that could be questionable.
Should I cancel my home insurance once the house is sold firm?
Generally, you should maintain appropriate insurance coverage until the property has actually closed and ownership has transferred. Speak with your insurance provider about the correct cancellation or transition date for your policy.
What happens to my mortgage when I sell?
If there’s a mortgage registered against the property, your lawyer will typically obtain the required payout information and deal with it as part of the closing. Depending on your mortgage, there may be discharge costs, penalties or other considerations. Speak with your lender and lawyer well before closing if you’re unsure.
Do I need a lawyer to sell a home in Ontario?
A real estate lawyer plays an essential role in completing an Ontario real estate transaction, including handling the transfer of ownership and closing funds. It’s a good idea to have your lawyer selected well before closing.
Selling Is More Than Getting an Offer
Getting an accepted offer is a huge step, but a successful sale isn’t finished until the transaction closes. There are deposits to confirm, conditions to navigate, inspections and financing to work through, legal documents to prepare, moving arrangements to make and a closing to coordinate. That’s also why our role as Realtors doesn’t end when the SOLD sign goes up.
At Team Apex Real Estate, we help our clients understand what’s happening at each stage of the sale, what needs to happen next and who is responsible for what. Whether we’re helping someone sell in Shelburne, Orangeville or elsewhere throughout Dufferin County and the surrounding area, our goal is to make the process feel a lot less overwhelming. Because when you’re selling one of your biggest assets, you shouldn’t have to figure out the process as you go.
This article provides general information about the Ontario real estate process and should not be considered legal, financial or tax advice. Agreements and individual circumstances vary. Speak with the appropriate lawyer, lender, accountant or other professional regarding your specific situation.