Definition
A conditional purchase offer is a purchase offer with suspensive conditions — the transaction only closes if all conditions are waived (fulfilled or accepted by both parties) within the agreed period.
**Most common conditions**: 1. **Financing condition**: the buyer has X business days to obtain their final mortgage approval. If denied, the offer becomes void and the buyer recovers their deposit. 2. **Inspection condition**: the buyer retains a building inspector; if the report reveals major defects, the buyer can withdraw or renegotiate. 3. **Sale condition**: the buyer makes their purchase conditional on the prior sale of their current residence (kick-out clause often requested by the seller in return). 4. **Document review condition**: for condominiums, review of the syndicate's AGM minutes, reserve fund, and reserve fund studies.
**Waiving conditions**: - The buyer notifies the seller in writing (via the OACIQ condition waiver form) within the allotted time - Without notification within the deadline → the condition is deemed unsatisfied → the offer is cancelled
**Broker tip**: A financing condition period of 5-7 business days is standard. Shorter periods (3 days) may displease lenders and require a very solid pre-authorization upstream.