Published 16 September 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty
In Ontario, a buyer can back out only if the agreement allows it: an unfulfilled condition such as financing, inspection or status certificate review before its deadline, or the 10-day rescission period for a new condo bought from a developer. There is no general cooling-off period for resale homes. A buyer who walks away from a firm deal risks losing the deposit and being sued for the seller’s losses.
Conditional vs firm
| Situation | Can the buyer exit? |
|---|---|
| Conditional offer, condition not satisfied by deadline | Usually yes, deal ends and deposit is typically returned per the agreement |
| Condition waived or fulfilled (firm deal) | No right to walk away |
| New condo bought from a developer | 10-day rescission period under the Condominium Act |
| Resale house or resale condo | No statutory cooling-off period |
| Seller breaches the agreement | Buyer may have remedies; get legal advice |
What happens to the deposit
The deposit is held in trust, usually by the listing brokerage. If a firm deal fails because the buyer does not close, the seller will usually claim it, and the brokerage generally needs both parties’ written release or a court order to pay it out. If the seller resells for less, the seller may also sue for the shortfall and costs. See buyer failed to close.
For sellers: reducing the risk
- Ask for a meaningful deposit, due promptly.
- Keep condition periods short and clear.
- Check the buyer’s pre-approval and closing date realism.
- Keep backup interest warm until the deal is firm.
Know your home value before negotiating
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For buyers: protecting yourself
- Use financing, inspection and status certificate conditions where you can.
- Get a full mortgage approval, not just a pre-approval, before firming.
- Do not waive conditions you cannot afford to lose.
- Read how long a conditional offer lasts.
Where I fit
I am Jatin Dua, Broker of Record at RE/MAX Quantum Realty, advising buyers and sellers across Toronto and the GTA. I am not a lawyer — for a failed deal, speak to a real estate lawyer quickly.
The takeaway
An Ontario buyer can back out only through the agreement’s conditions before they expire, or within the 10-day rescission period on a new condo from a developer. Resale deals have no cooling-off period, and walking away from a firm deal can cost the deposit and more.
Talk it through with me
Dealing with a shaky deal?
Tell me what is happening. I will explain your options and who to speak to next.
I will come back to you personally, usually the same day. If it is urgent, call or text 833-330-1925.
Frequently asked questions
Can a buyer back out of an accepted offer in Ontario?
Only if the agreement allows it, usually through an unfulfilled condition before its deadline, or within the 10-day rescission period on a new condo from a developer.
Is there a cooling-off period for resale homes in Ontario?
No. There is no statutory cooling-off period for resale houses or resale condos.
What happens to the deposit if a buyer walks away?
On a firm deal, the seller usually claims it, and release typically needs both parties’ written agreement or a court order.
Can a seller sue a buyer who does not close?
Yes. A seller can pursue the deposit and damages such as a lower resale price and costs.
How long is the new condo cooling-off period?
Ten days after receiving the signed agreement and disclosure statement, under the Condominium Act, 1998.
Can a seller back out of an accepted offer?
Generally not on a binding agreement without consequences. Get legal advice.
Sources
- Condominium Act, 1998 — including the 10-day rescission period for new condominium units bought from a developer. Accessed 16 September 2026.
- Real Estate Council of Ontario (RECO) — public register of registrants, registration categories and disciplinary decisions. Accessed 16 September 2026.
- Trust in Real Estate Services Act, 2002 — the statute governing Ontario real estate registrants, in force in its current form since 1 December 2023. Accessed 16 September 2026.
Related reading
- Buyer failed to close
- Deposit vs down payment
- Pre-construction rescission rights
- Home inspection condition wording
About the author — Jatin Dua, Toronto and GTA real estate broker
I am Jatin Dua, Broker of Record and co-founder of RE/MAX Quantum Realty Inc., Brokerage, Unit 101, 799 The Queensway, Etobicoke. I work with buyers and sellers across Toronto and the GTA, with deep local knowledge of the west end. Four-plus years of active GTA transactions and over $100 million in sales volume. Every market figure here comes from TRREB’s published tables and every rule from RECO or Ontario legislation, so you can check all of it without asking me.
Reach me at connect@jatindua.com or 833-330-1925, or book a call.