You’ve found a townhouse you like. The next step is making an offer and in Canada, that means signing a legally binding Agreement of Purchase and Sale (APS).
Unlike a casual negotiation, submitting an offer involves real money, legal commitments, and specific conditions that determine how protected you are if something goes wrong before closing. Your deposit, financing condition, inspection clause, and townhouse-specific documents (such as status certificates or strata records) all play a role in whether the deal succeeds or fails.
This guide explains how to make an offer on a townhouse in Canada step by step, including how the process works, what documents matter most, and what first-time buyers and newcomers should understand before signing anything.
- Townhouse Contract: What It Includes, What To Negotiate, and What To Check Before You Sign
- How to Make an Offer on a House (U.S. & Canada Guide)
- Townhouse HOA: What It Is, How It Works, and What Buyers Must Know
- Exploring Townhouse and Townhome Investments: A Guide for North American Buyers
Before You Write the Offer: What Must Already Be in Place
The single most common mistake buyers make is writing an offer before they're actually ready. Here's what must be confirmed before your agent drafts the APS:
1. Mortgage Pre-Approval — Not Just Pre-Qualification
A pre-qualification is an estimate based on stated income. A pre-approval is a conditional commitment from a lender based on verified documents. The difference is enormous when you're competing for a property.
What pre-approval gives you: a confirmed maximum purchase amount, a rate hold (typically 90–130 days), and credibility with sellers and agents. A seller who receives two offers — one from a pre-approved buyer and one from an unverified buyer — will almost always prioritize the pre-approved one, even at a slightly lower price.
For newcomers: if you have limited Canadian credit history, confirm with your lender which mortgage product you qualify for, what down payment is required, and whether CMHC insurance applies before you go into offer negotiations. Per RBC guidance, newcomers without established Canadian credit typically need a minimum 35% down payment to qualify without a full credit history on file.
2. Your Deposit Funds — Liquid and Accessible
This is where newcomers and first-time buyers frequently get caught. In Ontario, the deposit is due within 24 hours of APS acceptance — in real time, not business hours. If your APS is signed at 9pm on a Friday, your deposit (certified cheque or bank draft) is due by 9pm Saturday. Wire transfers can take 1–3 business days and may not arrive in time.
Before you make an offer: confirm with your bank that you can obtain a certified cheque or bank draft quickly, and on short notice. If your funds are in an investment account, GIC, or overseas, start the transfer process before offer day, not after.
3. Comparable Sales Data (CMA)
Your agent should provide a Comparative Market Analysis — the actual sold prices (not list prices) of similar townhouses in the same neighbourhood in the past 60–90 days. This is the evidence base for your offer price. In a balanced or buyer's market, the CMA data is your negotiating anchor. In a seller's market with multiple offers, it tells you the floor — not the ceiling — of what you'll likely need to offer.
4. The Townhouse-Specific Documents — Request Before Offering
Unlike a detached home, a townhouse — especially a condo-titled one — has a layer of governance documents that can reveal critical information about the financial health of the building and community. Requesting and reviewing these before you make an offer saves you from having to walk away after signing.
• Ontario condo townhouse: Request the status certificate ($100, typically provided by seller on request). Your lawyer reviews it.
• BC strata townhouse: Request strata documents (bylaws, minutes, depreciation report, financials). Your agent requests these from the strata.
• Freehold townhouse with HOA: Request HOA declaration, bylaws, budget, reserve fund study, and meeting minutes. These are not always provided automatically.
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💡 Review Documents Before Offering — Not During the Conditional Period Most buyers request status certificate or strata documents as a condition of the offer, then review during the conditional period. This is standard and acceptable. But if the property has been on the market for a few days, or you have time before submitting, requesting documents early lets you walk in to negotiations already knowing the financial picture. A depleted reserve fund or a large pending special assessment is a dealbreaker — better to know before you write the offer. |
The Offer Process: Step by Step
|
# |
Stage |
What Happens — and What You Must Do |
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Step 1 |
Get Pre-Approved (Before You Even Search) |
Mortgage pre-approval tells you your exact budget and signals to sellers you are a serious buyer. Without it, your offer may not be taken seriously — especially in competitive markets. Lock in a rate with your lender to protect against increases during your search. |
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Step 2 |
Research Comparable Sales (Determine Fair Value) |
Ask your agent for CMA (Comparative Market Analysis) — sold prices of similar townhouses in the same neighbourhood in the past 60–90 days. This is the data that justifies your offer price and protects you from overpaying. |
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Step 3 |
Review Townhouse-Specific Documents First |
For strata/condo townhouses: request status certificate (ON) or strata documents (BC) before making an offer. For freehold townhouses: request disclosure of any HOA rules, restrictions, or special assessments. Issues here can kill a deal after offer — better to know first. |
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Step 4 |
Determine Your Offer Strategy |
In a buyer's market: offer below asking; include conditions; negotiate firm. In a seller's market / multiple offers: price at or above asking; minimize conditions; large deposit. Know which market you're in before you decide your posture. |
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Step 5 |
Draft the Agreement of Purchase and Sale (APS) |
Your agent drafts the APS using the standard OREA Form 100 (freehold TH, Ontario) or OREA Form 101 (condo TH, Ontario), or the BC Contract of Purchase and Sale. Key decisions: price, deposit amount, conditions, closing date, inclusions/exclusions. |
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Step 6 |
Set Your Irrevocable Deadline |
The irrevocable date/time is your offer's expiry. Give the seller enough time to review (typically same evening or next morning) but not so long they can shop your offer to other buyers. Standard: 12–24 hours in most Canadian markets. |
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Step 7 |
Submit the Offer with Deposit Ready |
In Ontario, your deposit is due within 24 hours of acceptance — in real time, not business hours. Have certified funds or a bank draft ready before you submit, especially on evenings and weekends. |
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Step 8 |
Negotiate Counter-Offers or Multiple Offer Situations |
The seller can: accept, reject, or counter your offer. A counter-offer changes the terms (usually price or conditions) and voids your original offer. In a multiple-offer situation, you may get one chance to submit your best offer — know your ceiling before you go in. |
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Step 9 |
Satisfy Conditions During the Conditional Period |
Once accepted, you have 5–10 business days (typical) to satisfy your conditions: arrange financing confirmation, complete home inspection, review strata/condo documents. Each condition must be formally waived in writing by the deadline. |
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Step 10 |
Firm the Deal & Pay Balance of Deposit |
Once all conditions are waived, the deal is firm and legally binding. The balance of your deposit (if not paid in full at offer) is due per the APS terms. From this point, backing out has financial and legal consequences. |
The Agreement of Purchase and Sale (APS): Every Term You Need to Understand
The APS is the legal instrument of your offer. In Ontario, agents use OREA Form 100 for freehold townhouses and OREA Form 101 for condo-titled townhouses. In BC, it's the Contract of Purchase and Sale (CPS) with conditions called 'subjects.' Once both parties sign and conditions are waived, you are legally obligated to close. Here is what every key term actually means:
|
APS Term |
What It Means — Buyer's Plain-Language Explanation |
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Purchase Price |
The amount you are offering to pay. This is your opening bid. It can be negotiated through counter-offers. Once agreed and the APS is signed by both parties, it is legally binding. |
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Deposit |
Good-faith payment showing commitment to close. In Ontario: typically 5% of the purchase price; due within 24 hours of APS acceptance (real-time, not business hours). Held in trust by the listing brokerage. Becomes part of your down payment at closing. If you back out without a valid unfulfilled condition, you risk losing it. |
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Irrevocable Date & Time |
The deadline for the other party to accept your offer. After this time, your offer expires and you are released from it. Typically 12–24 hours in most Canadian markets. In hot seller's markets with multiple offers, sometimes set to same evening. |
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Closing Date (Completion Date) |
The date when title transfers from seller to you and you receive the keys. Usually 30–90 days after offer acceptance. Negotiated based on both parties' needs. Your mortgage funds on this date. |
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Conditions (Subjects) |
Events that must happen before the deal becomes firm. If not fulfilled, the deal is void and your deposit is typically returned. In BC, conditions are called 'subjects.' Typical buyer conditions: financing approval, home inspection, strata document review (for condo TH), sale of current home. |
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Condition Period |
The number of business days to fulfill each condition. Standard: 3–10 business days. The condition must be formally waived in writing before the deadline or the deal dies automatically. |
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Inclusions (Chattels Included) |
Moveable items the seller agrees to leave: appliances, window coverings, garage door openers, light fixtures (if moveable). These must be listed specifically — nothing is assumed to be included unless written in the APS. |
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Exclusions (Fixtures Excluded) |
Items physically attached to the property that the seller is taking with them (e.g., a custom chandelier, built-in shelving). If the seller intends to remove it, it must be listed here or they leave it. |
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Status Certificate Condition (Condo/Strata TH only) |
For condo-titled townhouses in Ontario: a condition allowing your lawyer up to 10 days to review the status certificate. This document reveals the condo corporation's financial health, reserve fund, any lawsuits, and current budget. A failing status certificate is grounds to walk away. |
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Strata Document Review (BC only) |
The BC equivalent of the status certificate condition. Your agent requests all strata documents (minutes, bylaws, depreciation report, insurance certificate) and you have a set period to review and approve them. |
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Requisition Date (Title Search Deadline) |
The deadline by which your lawyer must complete a title search to confirm no liens, encumbrances, or ownership disputes. Any unresolved title issues must be fixed before closing. |
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Schedule A |
The attachment to the APS where your specific conditions are drafted in detail. This is where your financing condition, home inspection condition, and any other custom terms live. The wording in Schedule A matters enormously — have your agent and lawyer review it. |
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🚨 The APS Is Legally Binding — This Is Not Like Signing a Lease Many newcomers and first-time buyers approach the APS with the same informal attitude they might have toward a rental application. It is a fundamentally different document. Once signed by both parties, it is a legally enforceable contract. Backing out without a valid unfulfilled condition means: (1) you likely forfeit your deposit; (2) the seller may sue you for damages — their carrying costs, relisting fees, and any price difference if they re-sell lower. Take this document seriously and have a real estate lawyer review it before you waive conditions. |
Conditions: The Clauses That Protect You — and When to Include Them
Conditions (in BC: subjects) are contingencies in your offer — events that must occur within a specified time period for the deal to proceed. If a condition is not met, you can walk away and get your deposit back. Here's exactly when to use each:
|
Condition |
When to Include |
Why It Protects You — and What Happens Without It |
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Financing Condition |
Always include if pre-approval only |
Gives you X business days to confirm final mortgage approval. If your lender declines, you walk away without losing your deposit. Without this condition on a firm offer, you are legally obligated to close — even if your financing falls through. |
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Home Inspection Condition |
Almost always include |
Gives you X business days to have a licensed home inspector assess the property. If significant issues are found, you can negotiate price reduction, request repairs, or walk away. In a hot seller's market, some buyers waive this — a risk that has backfired badly for many. |
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Status Certificate Review (Condo TH, Ontario) |
Always include for condo-titled TH |
Your lawyer reviews the condo corporation's status certificate — financial statements, reserve fund, budget, lawsuits, rules. A poorly managed condo corporation or a depleted reserve fund is a material risk. 10 days review period standard. |
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Strata Document Review (Townhouse in BC) |
Always include for strata TH in BC |
Same principle as status certificate in Ontario. You review strata bylaws, minutes, depreciation report, insurance, and financials. Particularly important for uncovering special levies, ongoing litigation, or deferred maintenance. |
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Sale of Buyer's Property |
Include if you need to sell your home first |
Makes your purchase conditional on your existing home selling. Sellers dislike this — it creates uncertainty. In a buyer's market, sellers may accept it with an escape clause (allowing them to keep showing and accept another offer, giving you 24–72 hours to firm up or walk). |
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Lawyer Review (especially for newcomers) |
Recommend always |
Gives your real estate lawyer time to review the APS before you are fully committed. Standard in some provinces (Quebec requires a notary), optional but recommended elsewhere. Critical for newcomers who may be unfamiliar with Canadian contract law. |
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Strata/HOA Rules Review |
Recommend for any townhouse with HOA |
Gives you time to review the HOA's rules, restrictions, and bylaws before committing. Discover rental restrictions, pet policies, or renovation bans that may be dealbreakers before you're locked in. |
The Conditional Period: What Happens Day by Day
Once your offer is accepted with conditions, you typically have 5–10 business days to satisfy each one. Here is what that looks like in practice:
• Day 1: Notify your mortgage broker/lender that your offer was accepted. They begin final underwriting.
• Days 1–2: Book your home inspector. Good inspectors book out 2–5 days — book on Day 1.
• Day 1 or 2: Agent requests status certificate (ON) or strata documents (BC) if not already obtained.
• Days 2–4: Home inspection takes place. Inspector provides report usually same day or within 24 hours.
• Days 3–5: Lawyer reviews status certificate/strata docs. Provides written opinion. Discuss findings with your agent.
• Days 4–7: Lender issues mortgage commitment/approval. Broker confirms in writing.
• By Day 7–10 (deadline): Formally waive each condition in writing using your agent's waiver form. Or formally decline and walk away. Missing the deadline without written communication causes the deal to die automatically.
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⚠️ Missing the Condition Deadline Is Fatal to the Deal If you fail to waive or formally decline a condition by the written deadline, the deal dies automatically under Canadian contract law. You do not get an automatic extension. The seller is free to accept another offer. If you need more time to satisfy a condition, you must request a written extension — agreed to by both parties — before the original deadline passes. Discuss this with your agent at least 24 hours before expiry. |
Offer Strategy: Buyer's Market vs. Seller's Market
The tactics for making a strong offer change fundamentally based on market conditions. Here's how to calibrate your strategy:
|
Offer Element |
🟢 Buyer's Market Strategy |
🔴 Seller's Market / Multiple Offers |
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Offer Price |
Below asking (2–5% under) or at assessed value. Use CMA to anchor low. |
At or above asking. In multiple offer situations: offer your true ceiling — not 'close to' it. |
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Deposit Size |
Standard 5% of purchase price. Negotiable; smaller ok in buyer's market. |
Large deposit signals commitment. 5–10% or more; in GTA bidding wars, higher deposit = stronger optics. |
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Conditions |
Include all relevant conditions: financing, inspection, strata docs, HOA rules review. Seller will accept. |
Minimize — financing condition is still recommended. Waiving inspection is a risk; make an informed decision. |
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Closing Date |
Flexible — you can propose what works for you; seller likely to accept. |
Offer a date that works for the seller. Ask your agent what the seller prefers. Flexibility on closing = stronger offer. |
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Irrevocable Period |
24–48 hours reasonable. Take your time. |
Same evening or next morning. Don't give the seller time to shop your offer to other buyers. |
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Escalation Clause |
Not typically needed. Negotiate directly. |
Optional: 'I will beat any competing offer by $X up to a maximum of $Y.' Must be used carefully — get agent advice. |
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Personal Letter |
Optional and increasingly less relevant legally. |
In some provinces (ON, BC), agent advice varies. Human touch can help; legal risk of discrimination exists. |
How to Determine Which Market You're In
Months of inventory: divide active listings by monthly sales. Under 4 months = seller's market. 4–6 months = balanced. Over 6 months = buyer's market. Your agent can pull this data for your specific neighbourhood and property type.
Days on market (DOM): How long has the property been listed? Under 7 days = active demand; you may face competition. 30+ days = slower market; seller may be motivated; more negotiating room.
Price reductions: Has the listing price been reduced since original list? A price cut signals a motivated seller. Ask your agent for the full listing history.
The Deposit Decision: How Much Is Enough?
In Canada, there is no minimum deposit requirement — but there are strong market norms. A deposit that is too low signals financial weakness or lack of seriousness and can cause a seller to decline or favour a competing offer.
• Standard Canadian deposit: 5% of the purchase price. On a $700,000 townhouse, that's $35,000.
• Competitive deposit (seller's market / bidding war): 5–10% of purchase price. On the same townhouse, $35,000–$70,000.
• Strategic note: In a multiple-offer situation, some sellers have accepted a lower offer price when the competing higher offer had a smaller deposit. A large deposit demonstrates certainty of closing.
Remember: the deposit is not a separate cost. It becomes part of your down payment at closing. You are not paying it in addition to your down payment — it counts toward it.
Townhouse-Specific Offer Considerations: What's Different from a House
These are the elements of a townhouse offer that do not apply to standard detached home purchases and where many buyers are caught unprepared:
|
Townhouse-Specific Document / Issue |
What to Request, Review, and Watch For |
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Status Certificate (Condo TH, Ontario) |
A document from the condo corporation disclosing: current budget, reserve fund balance, any lawsuits, outstanding special assessments, current rules and bylaws. Your lawyer reviews it. Cost: $100 (seller usually provides). Red flags: depleted reserve fund (<10% of annual budget), active litigation, unpaid fees by previous owner. |
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Strata Documents (Townhouse in BC) |
The BC equivalent. You receive: strata bylaws, meeting minutes (last 2 years), depreciation report, insurance certificate, financials, current strata fees. Review for: deferred maintenance, planned special levies, restrictions on pets/rentals, any bylaw violations pending. |
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HOA Disclosure (Freehold TH) |
For freehold townhouses with an HOA, request: declaration, bylaws, rules, current budget, reserve fund study, meeting minutes, and any upcoming assessments. HOA documents are not always provided automatically — your agent must request them. Buyers are often unaware of HOA rules until after possession. |
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Property Disclosure Statement (PDS) |
Seller's declaration of known issues: past flooding, mould, roof age, any unpermitted renovations, WETT certificate for fireplace, underground oil tanks (older properties), and more. Not all provinces require a PDS — in Nova Scotia and some others it's declining. Review carefully; material omissions are actionable. |
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Title Review |
Your lawyer searches the title to confirm: no liens, easements, right-of-ways, construction liens, or ownership disputes. For leasehold townhouses (common in BC), title search confirms the lease terms and remaining duration. Title insurance protects against defects found after closing. |
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Parking & Locker Ownership Type |
In a condo/strata townhouse, parking spots and storage lockers may be: titled (owned, transferable, have value), exclusive use common element (use rights, not owned), or assigned (no formal ownership). Titled parking is most valuable and most easily transferred. Confirm which applies before making an offer. |
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Outstanding Special Assessments |
A special assessment is a one-time charge levied by the condo corporation for major repairs not covered by the reserve fund. An assessment that was approved before your closing date is typically the seller's responsibility unless otherwise negotiated. Confirm in the status certificate and APS inclusions/exclusions. |
OREA Form 100 vs. OREA Form 101: Which Applies to Your Townhouse?
In Ontario, the APS form depends on the legal ownership structure — not the physical appearance of the unit.
• OREA Form 100 (Freehold): Used for freehold townhouses — where you own the land and structure with no condo corporation. Simpler; no status certificate clause required (though HOA disclosure may still apply).
• OREA Form 101 (Condominium): Used for condo-titled townhouses — where a condo corporation exists. Includes specific clauses for the status certificate review condition, parking/locker ownership, condo fees, and any rules affecting the unit. If your townhouse is in a complex with a condo corporation, Form 101 applies even if it physically looks like a townhouse.
If your agent uses the wrong form, it creates legal complications at closing. Confirm with your agent which form is being used and why before you sign.
Counter-Offers and Multiple Offer Situations
How a Counter-Offer Works
When a seller counter-offers, they are rejecting your original offer and proposing new terms — usually a higher price, different closing date, or fewer conditions. Importantly: a counter-offer legally voids the original offer. You are no longer bound by what you originally submitted.
The counter-offer also has an irrevocable date. You have until that time to accept, reject, or counter back. Negotiations can go multiple rounds — each counter voids the previous offer. There is no limit on rounds, but the practical reality is that most deals are settled within two or three exchanges.
Multiple Offers (Bidding Wars): What Actually Happens
In a multiple offer situation, the listing agent notifies all buyers' agents that competing offers exist. Each buyer submits their best offer (typically sealed) by a deadline. The seller reviews all offers — simultaneously — and can: accept one outright, counter one or more, or reject all.
What sellers actually evaluate in a multiple offer:
- Price: The most obvious factor — but not the only one.
- Conditions: Fewer conditions = stronger offer. A firm (no condition) offer is strongest but carries risk.
- Deposit: Larger deposit = more credibility and commitment.
- Closing date: The seller's preferred date; flexibility is valued.
- Escalation clause (if used): Automatically beats competing offers up to your maximum. Must be transparent about your ceiling if seller invokes verification.
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📋 Register for the Offer Presentation In Ontario, your agent can request to present the offer in person to the seller. This is not always accepted, but when it is, it can be a meaningful differentiator — especially for an offer that is slightly below the top price but has a compelling story (first-time buyer, flexible on closing, large deposit). Ask your agent whether this is worth pursuing for the specific property and seller situation. |
The Bully Offer
A bully offer (Ontario terminology) is an offer submitted before the seller's set offer date designed to force the seller to respond before other buyers can submit competing offers. The bully offer must contain an expiry time that falls before the scheduled offer night.
When to consider a bully offer: if you've done your research, believe the property is priced correctly or below market, and don't want to enter a bidding war. The risk: the seller may decline and proceed with the scheduled offer night, having now seen your ceiling price.
After Your Offer Is Accepted: What Happens Next
- Deposit due: Within 24 hours (Ontario, unless otherwise specified). By bank draft or certified cheque to the listing brokerage's trust account.
- Notify your mortgage broker: They begin final underwriting. Provide the accepted APS and any additional documents they request immediately.
- Book home inspector: Do this Day 1. Good inspectors book out — don't wait.
- Request documents: Status certificate (ON), strata docs (BC), or HOA disclosure if not already received.
- Engage your real estate lawyer: Provide the APS immediately. They begin title search and review any condo/strata documents.
- Track your condition deadlines: Write them in your calendar. Set reminders 48 hours before each deadline.
- Waive conditions in writing: When all conditions are satisfied, your agent submits formal written waivers for each condition. The deal is now firm and legally binding.
- Arrange balance of deposit if applicable: Some APS structures have a staged deposit (portion at acceptance, balance at firming). Confirm your schedule.
Making an Offer as a Newcomer to Canada: What's Different
The offer process is the same for all buyers under Canadian law — but there are specific practical realities that newcomers encounter more often than established Canadian buyers. Here's what to know:
|
Issue for Newcomers |
What to Know — and What to Do |
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Deposit logistics — newcomers get caught here |
In Ontario, deposit is due within 24 hours of APS acceptance — in real time. If you accept an offer at 8pm Saturday, the deposit (certified cheque or bank draft) is due by 8pm Sunday. Have this arranged in advance. Wire transfers can take 1–3 days — your bank may need notice. |
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Legal name must match mortgage and ID exactly |
The name on your APS must exactly match your mortgage pre-approval and government ID. Newcomers with names transliterated from other scripts sometimes have variations across documents. Confirm with your lawyer and lender before your agent drafts the offer. |
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Conditional on financing — never waive this |
Newcomers with newer credit histories or non-standard income documentation face higher mortgage approval risk than established Canadian borrowers. The financing condition is your protection. Even if the seller prefers a firm offer, the financing condition is not optional for most newcomers. |
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Understand the legal document you are signing |
The APS is a legally binding contract in Ontario and BC. Once signed by both parties, backing out has financial and legal consequences. Many newcomers are used to verbal agreements or less formal property transaction processes in their home country. Treat the APS with the gravity it deserves. |
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Your real estate lawyer review is not optional |
In Quebec, a notary is legally required. In other provinces, it's technically optional but practically essential. For newcomers unfamiliar with Canadian real estate law, a review of the APS by a real estate lawyer — before conditions are waived — is the most important professional investment you can make. |
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35% down payment for no Canadian credit history |
Per RBC guidance: newcomers without established Canadian credit history or employment may qualify with 35% down payment + reference letter from home bank. If your down payment is below 20%, you need CMHC mortgage insurance — confirm eligibility before you make an offer. |
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Strata and HOA documents — read them before offering |
In your home country, apartment and townhouse communities may have very different governance structures. Canada's strata corporations and HOAs have bylaws that govern what you can do, own, and pay. Rules about pets, short-term rentals (Airbnb), parking, and noise are binding. Read them before you're bound by them. |
Frequently Asked Questions: How to Make an Offer on a Townhouse in Canada
How much should I offer on a townhouse in Canada?
Base your offer on sold comparables — similar townhouses that have sold in the same neighbourhood in the past 60–90 days. In a buyer's market, offering 2–5% below asking is reasonable if the CMA supports it. In a seller's market or multiple offer situation, you may need to offer at or above asking. The list price is a marketing number; the CMA-based fair market value is your anchor.
How long does the offer process take?
The offer itself (from drafting to acceptance or rejection) typically takes 12–48 hours. The conditional period, if applicable, is usually 5–10 business days. From offer acceptance to closing (key date), typically 30–90 days. From start to finish — offer to possession — most townhouse transactions in Canada take 45–90 days.
Can I make an offer without a real estate agent in Canada?
Yes — it is legal to submit an offer without a buyer's agent. However, the APS is a complex legal document, and the offer process involves deposit logistics, condition drafting, and negotiation where errors are costly. A buyer's agent is paid by the seller (through commission split) — meaning their services cost you nothing directly. For newcomers and first-time buyers, engaging an experienced buyer's agent is strongly recommended.
What happens if my financing falls through after my offer is accepted?
If you have a financing condition and your lender declines: you formally decline the condition before the deadline, the deal is void, and your deposit is returned. If you have no financing condition (firm offer) and your lender declines: you are still legally obligated to close. Failing to close means forfeiting your deposit and potentially being sued by the seller for additional damages. This is why the financing condition is non-negotiable for most buyers — particularly newcomers.
What does 'irrevocable' mean in a Canadian real estate offer?
Irrevocable means your offer cannot be withdrawn until the stated date and time. Once you submit an offer, you are bound by it until the irrevocability expires. The seller can accept, counter, or let it expire — but you cannot pull the offer before the irrevocable deadline without potentially facing legal consequences. This is one of the most misunderstood aspects of Canadian offer law for newcomers.
Is a deposit the same as a down payment?
No — but the deposit is part of your down payment. The deposit (typically 5% of purchase price) is paid within 24 hours of acceptance and held in trust. At closing, it is applied toward your total down payment. So if your down payment is 20% and your deposit was 5%, you'll bring the remaining 15% plus closing costs to your lawyer's office on closing day.
What is a status certificate and why does it matter for a condo townhouse?
A status certificate is a package of documents provided by the condo corporation disclosing the corporation's financial health, reserve fund balance, current budget, any pending lawsuits, outstanding fees, and the rules governing the unit. Your lawyer reviews it during the conditional period. A depleted reserve fund, active litigation against the corporation, or a large unpaid special assessment are red flags that may justify walking away or renegotiating the price.
Conclusion
Making an offer on a townhouse in Canada is not complicated but it is consequential. The buyers who do it well are not the ones who move fastest or offer the most. They're the ones who did their research before the offer, structured their conditions correctly, had their deposit ready, and understood exactly what they were signing.
Know your market. Know your CMA. Have your deposit liquid. Include the conditions that protect you — especially financing. Review the townhouse-specific documents before or during the conditional period. And engage a real estate lawyer to review the APS before you waive any condition.
For newcomers in particular: the offer process is the moment where preparation meets action. Everything you've done to build your credit, save your down payment, and research the market comes down to this document. Treat it with the respect it deserves and you will move through it with confidence.
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Ready to Make Your First Offer on a Townhouse in Canada? NaviLiving specializes in guiding newcomers and first-time buyers through every step of Canada's homebuying process from pre-approval and property search to offer strategy, conditions, and closing. |
