You found the home, signed the offer, and your dream is becoming real, but now something has changed. Can a buyer back out of an accepted offer in Canada? It’s a common and often stressful question. The short answer is: Yes, sometimes… but not without potential consequences.

Let’s break down the legalities, real estate protocols, and actual scenarios that determine what happens when a buyer tries to walk away from a signed offer to purchase.

Are you keeping an eye out for your next home? Our team can help you stay ahead of the curve! Sign up for early listing alerts right here. 

Understanding the Offer to Purchase: Conditional vs. Firm

When a buyer submits an offer to purchase and the seller accepts it, the agreement can fall into two categories:

Conditional Offer: This means the buyer has included specific conditions that must be satisfied for the deal to proceed. Common examples include:

• Financing approval
• Home inspection
• Sale of buyer’s current home
• General due diligence

If any of these conditions aren’t met within the agreed time, the buyer can walk away without penalty and have their deposit returned, assuming all terms were followed in good faith.

Conditional = A true escape path  (within stated time limits).

Firm Offer: A firm offer has no conditions or all conditions have already been waived or fulfilled. Once the deal is firm, the buyer is fully committed to closing and walking away now would be a breach of contract.

Firm = Legally Binding and Final 

Note: Even if the deposit money is not sent and received, the contract is considered “under seal”. 

Many buyers don’t fully grasp this concept, especially first-time buyers. Some assume they can still “change their mind.” In reality, once an offer is firm, it’s a legal commitment and there are legal repercussions. Most immediate would be the potential loss of the deposit money. 

---

Looking for more buying tips for Simcoe County? You’ll find plenty in the posts below: 

• 5 Tips When Buying A Waterfront Home
• Why Buy a Home in Snow Valley? 
• What Does Barrie Real Estate Offer Home Buyers?

---

Valid Reasons to Back Out of Buying a House (Without Legal Penalty)

So when can a buyer back out? Only if the offer is still conditional, and one of the conditions cannot be met:

• Financing falls through
• Home inspection reveals major issues
• The buyer’s existing home doesn’t sell (if that’s a condition)
• If a general due diligence is used and something is not to the buyer’s satisfaction

These are standard steps to buying a house and are built into most smartly written offers. It’s yet another of the many reasons to work with a knowledgeable real estate team before submitting an offer in the first place. 

What About the 10 Day Cooling Off Period?

Many people ask: Is there a 10-day cooling-off period in Ontario? The answer is yes, but only for new-build condos purchased from a builder.

Resale homes, townhouses, and detached houses do not come with an automatic cooling-off period. Once your offer is accepted and becomes firm, there’s no easy exit.

This is a critical distinction. If you’re putting an offer on a house, know that once it’s firm, you are legally bound to proceed.

---

Do you plan to sell your existing home before beginning your search? The posts below can give you a head start:

• Checklist for Selling a House
• 5 Tips For Selling A Waterfront Home
• Should You Stage Your Home Before Selling?

---

Can You Back Out of a House Sale?

The answer can be complicated, but in short; anyone backing out of a real estate deal must have a valid legal reason. If a buyer backs out of a firm deal without a valid legal reason:

• The seller can keep the buyer’s deposit
• The seller may sue for damages (e.g., if they later sell for less)
• The buyer could face litigation, legal costs, and court-ordered penalties

Example: A buyer signs a firm offer on a $900,000 home. Two weeks before closing, they get cold feet and walk away. The seller later resells for $870,000 — and sues the original buyer for the $30,000 loss (plus legal costs). This happens more than people think.

When Is It Too Late to Back Out of Buying a House?

The moment your offer goes firm, it’s too late to back out without consequences. This usually occurs:

• Immediately upon acceptance (for firm offers), or
• Once all conditions are waived (for conditional offers)

That means if you’ve already fulfilled or waived your conditions, the window has closed.

What About Buyer’s Remorse?

For real estate, there is no “buyer’s remorse law” in Canada that lets you cancel simply because you changed your mind. Real estate is treated seriously under contract law, and courts consistently enforce these contracts.

Even if you feel emotionally uncertain, once the deal is firm, buyer’s remorse doesn’t qualify as a valid exit reason.

Smart Steps to Protect Yourself Before You Sign

Here’s how to stay protected:

• Include very very well-written and crafted  conditions in your offer
• Get pre-approved for a mortgage before house hunting
• Understand the difference between a firm and conditional offer
• Ask your Realtor to explain each clause before you sign
• Never waive conditions lightly, especially financing

---

Why buy a house in Barrie? The posts below will give you a few reasons to start packing:

• Is Barrie a Good Place to Live With a Young Family?
• Discover Fun Things To Do in Barrie, Ontario
• Why Are People Moving From Toronto to Barrie?

---

Know Before You Commit

So, can a buyer back out of an accepted offer in Canada?

Yes — but only if the deal is still conditional and a clause gives you the right to exit.
Once your offer becomes firm, your commitment is legal, financial, and enforceable.

At The Weeks Group, we believe smart real estate decisions must be backed by smart contracts. That’s why we guide every client through the requirements for buying a house in Canada with clarity and care. From the agreement of purchase and sale to closing day, we’re here to protect you at every step.

Ready to buy your next house? Our Barrie real estate agents are happy to help you find what you’re looking for. Connect with us today at 705.305.4174 or email hello@weeksgroup.ca to learn more.