A seller’s guide to navigating inspections, buyer demands, and last-minute surprises
You’ve accepted an offer. The paperwork is signed. But before you celebrate, there’s one more critical phase:
the conditional period.
This is when the buyer finalizes their financing, completes their home inspection, and sometimes—tests your nerves. Many Toronto sellers describe this stage as the most stressful part of the entire process.
In this guide, we’ll walk through what to expect during the conditional period, how to avoid common deal-breakers, and what to do if unexpected issues come up before the sale goes firm.
1. What Is the Conditional Period—and Why It Matters
The conditional period usually lasts 5 to 10 business days and gives the buyer time to:
– Complete a home inspection
– Finalize mortgage approval
– Review status certificate (in condo sales)
– Address any other agreed-upon terms (e.g. appraisal, insurance)
During this time, the deal is not firm. That means the buyer can legally walk away—if their conditions are not met.
2. Why Sellers Find This Stage So Stressful
Even when the offer looks great, sellers often feel uneasy until the conditions are waived in writing.
Common seller fears include:
– “What if the inspection turns up something serious?”
– “What if the buyer’s financing falls through at the last minute?”
– “What if they come back asking for a price reduction?”
While these concerns are valid, they’re also manageable—with the right preparation and response.
3. How to Prepare for the Home Inspection
The home inspection is often where emotions run high. Some buyers use it to justify renegotiation—others walk away entirely.
How to minimize surprises:
– Fix visible, minor issues in advance (leaks, loose fixtures, cracked caulking)
– Service major systems (furnace, AC, roof) and keep records
– Clean and declutter spaces like basements, attics, and mechanical rooms
– Be honest in your disclosures—buyers are more forgiving when you’re upfront
Consider a pre-listing inspection
This can help you identify and address problems early, and even build buyer confidence by showing transparency.
4. What If the Buyer Tries to Renegotiate?
Sometimes, buyers come back after the inspection asking for:
– A price reduction
– A credit toward closing costs
– Specific repairs to be completed before closing
How to respond:
– Review the request calmly with your agent—don’t rush to say yes or no
– Ask for documentation (e.g. inspection report) before agreeing
– Consider offering a small credit rather than making repairs yourself
– Remember: You can walk away too, especially if there’s a stronger backup offer
Most issues can be resolved without drama—especially if the buyer still wants the property.
5. What If the Deal Falls Apart?
While it’s uncommon, some deals collapse during the conditional period. This could be due to a financing issue, cold feet, or an inspection red flag.
What to do if it happens:
– Don’t panic. Your home can go back on the market quickly
– Ask your agent to follow up with any buyers who previously showed interest
– Reassess whether changes (to pricing, condition, or staging) are needed
– Learn what went wrong—and use it to strengthen the next offer
A failed deal isn’t the end. Many sellers go on to receive better offers soon after.
Final Thought
The conditional period may feel uncertain, but it’s part of almost every real estate transaction in Toronto. With the right preparation and an experienced listing agent by your side, you’ll stay in control—and increase your chances of closing smoothly.
If you’re thinking about selling and want help navigating the process from offer to firm deal, I’m here to guide you every step of the way.
Send an email at olena@agentolena.com or call 647.294.3039 to get started.
