Accepted offer usually means a binding contract
In most Ontario residential resale deals, the buyer’s signed offer and the seller’s acceptance form an Agreement of Purchase and Sale — commonly the OREA Form 100 or a close cousin of it. Once offer and acceptance line up on the essential terms, you generally have a contract. That is true even before every condition is waived, and it is true before the deposit cheque clears.
“Can I back out?” is therefore the wrong first question. The better questions are: Is the deal still conditional? Has every condition been waived or fulfilled? Is there a contractual or statutory exit that still applies? If none of those help, walking away is usually a breach — with deposit and damages consequences — not a free change of mind. For how the form itself is built, see the Agreement of Purchase and Sale.
Conditional vs firm: the exit that actually works
While financing, home inspection, status certificate, insurance, sale of the buyer’s property, or another written condition is still open, the party who holds that condition can usually terminate under it — if they follow the wording, the notice method, and the deadline. A late or informal “I’m out” text is not a substitute for proper notice under the APS.
A conditional deal is still a contract. It is just not unconditional yet. Once every condition is waived or fulfilled, the deal is firm. After that, there is no general right to walk because you found a nicer house, your rate changed, or you got cold feet. Our guide to Ontario real estate conditions covers the common condition types, waiver, and fulfillment. Talk to your lawyer before you waive anything — waiver is often the moment the exit closes.
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No general cooling-off for Ontario resale
Ontario does not give buyers of typical resale residential homes a statutory cooling-off period. The short window to deliver the deposit is not a cooling-off period either. Missing the deposit deadline can put the buyer in breach; it does not hand the buyer a clean cancellation right. Ontario’s consumer page on what to know before buying a home makes the same distinction for resale condo units: there is no legislated cooling-off for cancelling without penalty.
Do not confuse resale with new or pre-construction condominium purchases. Under section 73 of the Condominium Act, 1998, a purchaser of a new or pre-construction condo from a declarant generally has a 10-day right to rescind after receiving the fully signed agreement, the disclosure statement, and Ontario’s Residential Condominium Buyers’ Guide (whichever comes later). That statutory rescission is about new condo sales from a developer. It does not apply to an ordinary resale house or a resale condo between private parties.
Buyer’s remorse is not a legal exit
Regret after acceptance is common. It is not a legal ground to tear up a firm APS. Neither is “I changed my mind,” “my parents hate it,” or “I saw a better listing.” Those stories may explain the panic. They do not, by themselves, terminate the contract.
Sellers can get buyer’s remorse too — a higher offer arrives, moving feels harder than expected, or title and disclosure issues surface late. The analysis is the same: look at the written conditions, any amendment, and whether the other side is actually in breach. Seller disclosure in Ontario and the APS title/requisition timeline can matter to fault, but they are not a general “I want out” button.
Mutual release and negotiated termination
If both sides want the deal dead, they can usually end it by agreement. In practice that often means a written mutual release (or similar termination paperwork) that deals with the deposit, releases claims, and tells the deposit holder what to do with the trust money. Brokerages and lawyers typically will not release a deposit on a handshake or a text thread.
A mutual release is a negotiation, not a right you can force unilaterally. One side may refuse to sign unless the deposit is forfeited, split, or held pending a damages claim. If you are asking for a release, expect the other side to ask what they get in return.
Deposit and damages if you walk from a firm deal
When a purchaser repudiates a firm agreement and fails to close, Ontario courts generally treat a true deposit as forfeited — even if the seller later resells for the same price or more. If the seller also proves damages, the deposit is usually credited against that award rather than kept on top of it. The full measure of loss, mitigation, and limitation periods are covered in damages when a residential real estate deal fails in Ontario. For trust holding, mutual releases, and when money moves, see real estate deposits in Ontario.
A Toronto real estate lawyer reviewing a “we want out” file will usually start with the signed APS, the condition schedule, every waiver or notice, the deposit receipt, and any amendment — before anyone drafts a threat letter or a release.
Amendments, extensions, and time is of the essence
Most residential APS forms say time is of the essence. Closing dates, condition deadlines, and deposit delivery times are not soft suggestions. If you need more time, get a signed amendment. An informal email trail is a poor substitute when someone later claims the deal was already dead or already firm.
Extensions and amendments can keep a shaky deal alive. They can also reset rights. Read what you are signing. Extending a condition is different from waiving it. Changing the closing date does not, by itself, reopen a financing or inspection exit you already waived.
Practical steps before you say “I’m out”
Call your lawyer before you waive conditions, before you send a termination notice, and before you tell the other side you are walking. Send notices the way the APS requires — often in writing to the named addresses or through the brokerages as specified. Keep every email, text, amendment, and banking record.
If the house has fire or major damage before closing, that is usually an insurance-clause problem, not a simple “back out” story. See fire or damage before closing in Ontario. If you are still in the real estate closing process, do not treat a panicked message as formal termination. Have your lawyer put the notice, the release, or the reservation of rights in writing.
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Frequently Asked Questions (FAQ)
Is there a cooling-off period after I accept an offer on a resale home in Ontario?
Generally no. Typical Ontario resale residential Agreements of Purchase and Sale have no statutory cooling-off period. The deposit delivery window is not a cooling-off period. A separate 10-day rescission right under the Condominium Act, 1998 usually applies to new or pre-construction condo purchases from a developer, not to ordinary resale deals.
Can I still walk away if my financing or inspection condition is open?
Often yes, if you terminate properly under that condition before it is waived or fulfilled — following the APS wording, notice method, and deadline. Once every condition is gone, the deal is firm and walking away is generally a breach. Get your lawyer to review the actual schedule before you send anything.
What happens to my deposit if I refuse to close a firm deal?
A true deposit is generally forfeited when the buyer breaches a firm agreement. The seller may also claim damages, with the deposit usually credited against proven loss. Mutual release and trust-release mechanics are separate from whether the deposit is forfeited as a matter of law.
Does a mutual release mean I automatically get my deposit back?
No. A mutual release is a negotiated document. It can return the deposit, forfeit it, split it, or leave claims open, depending on what both sides sign. Brokerages and deposit holders usually need signed release instructions before trust money moves.
Can I cancel because I changed my mind after acceptance?
Buyer’s remorse alone is not a legal exit from a firm Ontario resale APS. Look for an open condition, a statutory rescission that actually applies to your deal type, a mutual agreement to terminate, or a real breach by the other side — not a change of heart.