Contingent Offers Explained

If you need to sell your current home to afford your next one, a contingent offer can protect you. It lets you commit to a purchase only if a specific condition is satisfied first — most often the sale of your existing home. In Ontario these are usually written as conditional offers, and while they reduce your risk, they can also make your offer less attractive to a seller. Here's how to use them wisely.

Key takeaways

• A contingent (conditional) offer only becomes binding if a stated condition is met.
• The most common version for movers is a sale-of-property condition.
• Contingent offers protect the buyer but are weaker in a competitive market.
• An escape clause lets a seller keep marketing the home while your condition is pending.
• HOMEH gives eligible buyers the industry's highest Cashback Rebate to make a two-sided move easier. Sellers list for 1%, or free when they also buy with HOMEH within 6 months, or $395 + HST with a Mere Posting.

What is a contingent offer?

A contingent offer is a purchase offer that only becomes firm if certain conditions are satisfied. In Ontario, these conditions are written directly into the agreement of purchase and sale — which is why they're more commonly called conditional offers. Until each condition is waived or fulfilled, either party can typically walk away without penalty. For the broader picture of how conditions work, see conditional vs firm offer.

Common conditions include financing, a satisfactory home inspection, lawyer review, or — the key one for movers — the sale of the buyer's current home. That last one is the contingency this guide focuses on.

The sale-of-property condition

A sale-of-property (or "sale of buyer's property") condition says you'll complete the purchase only if your existing home sells by a set date. It's the safest way to buy and sell at the same time without committing to two homes at once. If your home doesn't sell in time, you can usually withdraw and recover your deposit.

The trade-off is strength. A seller weighing two offers will usually prefer the one that's firm or only lightly conditional. In a hot market, a sale-of-property condition can put your offer at the back of the line.

Common contingencies, ranked by strength

Not all conditions weigh the same in a seller's eyes. Here's how the common ones generally compare from a seller's perspective.

Because financing and inspection are common, sellers expect them. A sale-of-property condition is the one that gives sellers the most pause, since it ties their deal to a transaction they can't control.

The escape clause

To make a sale-of-property condition more palatable, sellers often insist on an escape clause (sometimes called a 48-hour or 72-hour clause). It lets the seller keep marketing the home; if another buyer makes an acceptable offer, you're given a short window to either remove your condition and commit, or step aside.

What the escape clause means for you

An escape clause keeps your deal alive but conditional. If a competing offer comes in, you may have to decide quickly whether to firm up your purchase before your own home has sold — so have your financing plan ready in advance.

When a contingent offer makes sense

A contingent offer is the right call when selling your current home is essential to financing the new one and you don't want to risk owning two. In a balanced or slower market, sellers are more open to it. In a competitive market, you may instead need to sell first, or arrange a bridge loan or HELOC so you can make a firmer offer. Our guide on whether to buy or sell first can help you choose.

Move with more confidence and HOMEH cashback

Eligible HOMEH buyers receive the industry's highest Cashback Rebate — extra room that can let you make a stronger offer or cushion a two-sided move. Sellers list for 1%, or free when they also buy with HOMEH within 6 months, or $395 + HST with a Mere Posting. Estimate yours with the cashback calculator or get started at sell and buy with HOMEH.