Congratulations! You’ve found a property you love in and submitted an offer. The real estate market, known for its competitiveness, requires a keen understanding of the process. Let’s break down the typical steps after your offer is submitted here.

1. The Waiting Game After The Offer: Seller’s Response 

• Acceptance: As in any market, this is ideal. In Ontario, particularly in hot markets like the GTA, speed is often key.
• Counteroffer: Common in Ontario, especially with multiple offers. Sellers might adjust price, closing dates, or include/exclude specific chattels/fixtures.
• Rejection: In competitive Ontario markets, multiple offers are the norm. Be prepared for potential rejection.
• Offer Presentation/Bully Offers: In Ontario, sellers may set a specific offer presentation date. “Bully offers” (pre-emptive offers) can disrupt this process, so be prepared for quick decisions.

2. Counteroffer Negotiation 

• Understanding Ontario’s standard forms is crucial. Your agent will guide you through the OREA (Ontario Real Estate Association) forms.
• Negotiation might involve HST implications, especially for new builds.
• Condo status certificates are vital in Ontario condo sales, and these are often a point of negotiation.

3. Contract Ratification (Agreement of Purchase and Sale – APS)

• In Ontario, the Agreement of Purchase and Sale (APS) is the binding contract. Ensure you understand all clauses.
• Your real estate lawyer should review the APS before you finalize.

4. After the Offer: Earnest Money Deposit (Deposit)

• In Ontario, this is referred to as a “deposit.” The amount varies, but it’s typically held in a real estate brokerage’s trust account.
• Ensure the deposit is made payable to the brokerage’s trust account.

5. Contingency Period (Conditions)

• Ontario uses the term “conditions” rather than “contingencies.” Common conditions include:
  • Home Inspection (Condition on Home Inspection): Essential in Ontario’s varied housing stock.
  • Financing (Condition on Financing): Crucial, given Ontario’s mortgage regulations.
  • Status Certificate Review (For Condos): In Ontario, this is a critical condition for condo purchases.
  • Lawyer Review (Condition on Lawyer Review): Some buyers include this condition to ensure their lawyer approves the APS.

6. After the Offer: Home Inspection and Appraisal

• Ensure your inspector is licensed and experienced in Ontario’s specific building codes.
• Appraisals must adhere to Canadian appraisal standards.

7. Loan Processing (Mortgage Approval)

• Work with a Canadian lender or mortgage broker familiar with Ontario’s mortgage landscape.
• Be aware of stress test requirements and CMHC insurance.

8. After the Offer:Title and Escrow (Title and Lawyer)

• In Ontario, real estate lawyers handle title searches and closing, rather than escrow companies.
• Title insurance is highly recommended in Ontario.

9. Final Walk-Through (Pre-Closing Visit)

• Ensure all agreed-upon items are present and in working order.

10. After the Offer:Closing (Closing Date)

• Your real estate lawyer will handle the closing, ensuring all legal and financial aspects are completed.
• Property tax and utility adjustments are done at this time.

Key Takeaways for Ontario Buyers:

• Work with an experienced Ontario real estate agent.
• Understand the Ontario Real Estate Association (OREA) forms.
• Engage a real estate lawyer early in the process.
• Be aware of local market conditions and potential for multiple offers.
• Condo buyers must understand the status certificate.

Navigating the Ontario real estate market requires local knowledge and expertise. With the right guidance, you can successfully close on your dream home.

To buy or sell your home in Ontario, contact me today at 647-995-3391 or via email at [email protected]. You can also visit my website by clicking here.

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