Buying a home is exciting, but it can also be stressful. It’s not uncommon for buyers to feel confident when submitting an offer, only to start second-guessing themselves later.
One of the most common questions buyers ask is:
“What if I make an offer and then change my mind?”
The answer depends on where you are in the negotiation process and whether any conditions are included in the offer.
If the Seller Hasn’t Accepted Yet
Submitting an offer does not automatically create a binding agreement.
If the seller has not accepted your offer within the irrevocable period, you may still be able to withdraw it.
Likewise, if the seller responds with a counteroffer, you are under no obligation to accept it. A counteroffer effectively rejects the original offer and creates a new offer for you to consider.
At that point, you can:
- Accept the counteroffer
- Submit another counteroffer
- Walk away from the negotiation entirely
No binding agreement exists until both parties agree to the same terms and a fully executed Agreement of Purchase and Sale is in place.
Once the Seller Accepts, the Contract Becomes Binding
If the seller accepts your offer within the irrevocable period and all parties sign the agreement, a legally binding contract is created.
At that point, you generally cannot walk away simply because you’ve changed your mind, found another property, or become nervous about the purchase.
Unlike some consumer purchases, there is typically no cooling-off period for resale residential properties in Ontario.
If you fail to complete the transaction without a valid contractual reason, you could risk losing your deposit and potentially face legal consequences.
The Importance of Conditions
This is why many buyers choose to include conditions in their offer.
Conditions provide an opportunity to complete important due diligence before becoming fully committed to the purchase.
Some of the most common conditions include:
Financing Condition
This allows the buyer time to obtain final mortgage approval from a lender.
Home Inspection Condition
A professional inspection can uncover issues that may not have been visible during showings.
Status Certificate Review
For condominium purchases, buyers often include a condition allowing their lawyer to review the Status Certificate and the condominium corporation’s financial and legal information.
Sale of Buyer’s Property Condition
This condition has become increasingly common in today’s market.
It allows the buyer time to sell their existing home before becoming fully committed to purchasing the new property. In some cases, the condition may require not only a successful sale but also a firm transaction or even a completed closing of the buyer’s current home.
What Happens If a Condition Cannot Be Satisfied?
If a condition cannot be fulfilled during the conditional period, the buyer may choose not to waive the condition.
For example:
- Financing approval is denied
- A home inspection reveals significant concerns
- A lawyer identifies issues during a Status Certificate review
- The buyer’s existing property does not sell within the required timeframe
In these situations, the parties will often sign a Mutual Release, which formally terminates the agreement and authorizes the return of the buyer’s deposit.
When a condition is not satisfied and the agreement is terminated according to its terms, the buyer is generally not considered to be in breach of contract.
Changing Your Mind Is Not the Same as Failing a Condition
This distinction is extremely important.
A valid condition protects a buyer when a specific requirement cannot be met.
However, simply deciding that you no longer want the property is different.
If the agreement is firm and all conditions have been waived or fulfilled, the buyer is expected to complete the purchase.
Buyer’s remorse alone is usually not a valid reason to walk away from a firm deal.
Final Thoughts
Before submitting an offer, make sure you understand exactly what obligations you are taking on.
A real estate offer is not just an expression of interest—once accepted, it can become a legally binding contract.
The best protection is to think carefully before submitting an offer, ensure the appropriate conditions are included when necessary, and fully understand the risks before signing.
In real estate, it’s much easier to change your mind before an offer is accepted than after.
