Can a buyer withdraw an offer?
Can a buyer withdraw an offer? The shocking truth every Georgetown seller must read before they sign.
Short answer: Yes — sometimes. But you can protect yourself.
If you’re selling a home in Georgetown, Ontario, you need clarity, not fluff. Buyers can withdraw offers in certain situations and not in others. The difference comes down to timing, wording, legal conditions, and the Agreement of Purchase and Sale (APS). Knowing those lines is how you turn a shaky offer into a reliable sale.
What makes an offer withdrawable in Ontario?
Key rules sellers must understand:
- Before acceptance: An offer can be revoked by the buyer at any time before you accept it. That’s standard contract law.
- After acceptance: Once you accept and communicate acceptance, the offer becomes a binding contract — unless it’s conditional.
- Conditional offers: If the buyer’s offer includes conditions (financing, inspection, sale of buyer’s home), the buyer can walk away legally if they don’t satisfy or waive those conditions within the timeline.
- Irrevocable period: Many offers include an irrevocable time window. If properly worded, it prevents withdrawal during that time. However, irrevocable clauses must be clear. If incorrectly drafted, they may not protect you.
These rules apply across Ontario. In Georgetown (Halton Hills), local practice leans on standard OREA forms and experienced broker coordination. The APS language and how agents communicate acceptance matter.
How the local law and real estate practice shape outcomes in Georgetown
- Standard forms: Most offers use OREA forms — consistent, recognized by courts. These forms define conditions, deposit rules, irrevocable clauses, and closing obligations. Proper use protects sellers.
- Real estate lawyers: In Ontario, law firms enforce closing, deposit, and title transfer. If a buyer withdraws improperly after acceptance, sellers can enforce the contract or claim damages through their lawyer.
–REALTOR obligations: Agents must present offers promptly and advise clients. If an agent misses an acceptance window or miscommunicates, the seller can lose protection.
Local point: Georgetown sellers benefit from strong brokerage representation. Halton Hills transactions often use strict timelines and deposit practices. Good agents use confirmed written acceptances and immediate deposit handling to reduce withdrawal risk.
Common scenarios and what they mean for sellers
1) Buyer revokes before you accept
- Result: Offer is dead. You can accept new offers.
- What to do: Keep multiple interested buyers. Use a deadline for offers to create urgency.
2) Buyer includes financing or inspection conditions and can’t satisfy them
- Result: Buyer can lawfully withdraw. Deposit returned if conditions not waived.
- What to do: Ask for stronger pre-approval letters. Consider short condition periods. Require higher deposits to discourage frivolous offers.
3) Buyer accepts then tries to back out without legal grounds
- Result: Seller can keep deposit, pursue damages, or ask for specific performance (court order to complete sale).
- What to do: Work with a lawyer. Decide fast: enforce or re-list.
4) Irrevocable clause used correctly
- Result: Buyer cannot revoke within the stated time. If attempt to revoke during this period, seller may treat offer as active and accept.
- What to do: Ensure your agent uses clear irrevocable windows. Confirm acceptance in writing.
Practical steps Georgetown sellers should take now
1) Use strong offer deadlines
Set a clear date and time for offers. Deadlines force buyers to commit or walk. In competitive markets, deadlines create multiple-offer situations that favour the seller.
2) Demand proof of funds and mortgage pre-approval
Don’t accept vague promises. Require a lender pre-approval letter and proof of down payment. This filters out buyers likely to fail financing conditions.
3) Shorten condition periods or ask for unconditional offers
If possible, request fewer or shorter conditions (5–7 day finance/inspection windows). Shorter windows reduce uncertainty and the window for withdrawal.
4) Use a solid deposit
A larger deposit (held in trust) signals commitment. It also becomes the primary remedy if the buyer breaches. Ask your agent what’s normal in Georgetown and set the deposit accordingly.
5) Consider the irrevocable clause
Include a reasonable irrevocable period to prevent last-minute withdrawals while offers are being compared. Make sure it’s clearly written.
6) Include “time is of the essence” where appropriate
This speeds up performance and helps enforce timelines. Talk to your lawyer before adding this clause—it has consequences.
7) Keep all communications written and immediate
Verbal acceptances don’t hold up. Get everything in writing. When you accept an offer, confirm acceptance via signed APS and notify the buyer’s agent immediately.
8) Use a local real estate lawyer early
If an offer is shaky, have a lawyer ready. They’ll advise on enforcing the agreement or negotiating a release.
Negotiation strategies tailored to Georgetown sellers
- Start firm, not soft: Open with clear, non-negotiable timelines and deposit requirements. Buyers will respect clarity.
- Test for seriousness: Ask buyers if their offer is conditional or firm upfront. Reward firm offers with priority.
- Leverage multiple interest: If you have several viewings, set an offer deadline and invite best-and-final offers.
- Use escalation clauses wisely: An escalation clause can get you higher offers. Cap it and require proof of competing offers.
- Control the inspection: Offer a pre-inspection report to reduce conditional hurdles. Or require inspections be completed in a short window by a licensed inspector.
- Use educated walk-away power: If a buyer tries to withdraw without valid reason, consult your lawyer immediately. Sometimes enforcing the contract results in the buyer completing the purchase.
What sellers often get wrong (and how to fix it)
- Mistake: Accepting verbal acceptance. Fix: Always get signed APS.
- Mistake: Weak deposit. Fix: Ask your agent what’s standard in Georgetown and aim higher in hot markets.
- Mistake: Long condition periods. Fix: Negotiate shorter timelines or conditional waivers for qualified buyers.
- Mistake: Poor communication with agents or lawyers. Fix: Create a rapid-response plan. Tell your agent you’ll decide within a set number of hours.
When a buyer withdraws — your options
- Accept it and re-list. Fast relist if market supports it.
- Keep deposit and claim damages. This requires legal steps.
- Seek specific performance. Rare, but courts can force completion.
- Negotiate a payout or compensation. Sometimes the fastest path is a cash settlement.
Choice depends on the market, timeline, and damages. In Georgetown, where buyers often plan around school years or employment, speed matters. Work with a lawyer and your agent to decide.
Real examples (short)
- A seller accepted an offer with a 24-hour irrevocable. Buyer tried to revoke that evening. The seller accepted and the sale held. The clear irrevocable period protected the seller.
- A buyer failed financing and pulled out. Because conditions were in place and not waived, the seller re-listed quickly. The deposit was returned and the seller priced more competitively to attract an unconditional buyer.
Final rules of thumb for Georgetown home sellers
- Before acceptance: anyone can withdraw. Protect yourself with offer deadlines and multiple prospects.
- After acceptance: a properly executed APS with no conditions is binding.
- Conditions and poorly worded irrevocability clauses are the usual gaps.
- Use strong deposits, short condition periods, and local lawyers.
If you want to sell fast, for top dollar, and avoid drama: be direct, be prepared, and work with an agent who enforces timelines and deposit rules.
Contact your realtor and legal team early. For local guidance and a no-nonsense selling plan tailored to Georgetown, email tony@sousasells.ca or call 416-477-2620. Visit https://www.sousasells.ca for market updates and a seller checklist.
FAQ — Offers, Withdrawals, and Negotiation in Georgetown, ON
Q: Can a buyer withdraw an offer any time?
A: Before you accept — yes. After acceptance — usually no, unless conditions allow it.
Q: What are common legal grounds for withdrawal?
A: Financing failure, unsatisfied inspection conditions, misrepresentation, or improper acceptance communication.
Q: Is an irrevocable period enforceable?
A: Yes if clearly written and part of the offer. It prevents withdrawal for that window.
Q: What if a buyer backs out after acceptance with no legal reason?
A: You can keep the deposit, sue for damages, or seek specific performance. Consult a lawyer quickly.
Q: How big should a deposit be in Georgetown?
A: It varies. Ask your agent. In competitive listings a larger deposit (5–10% or higher) is common.
Q: Should I accept conditional offers?
A: Prefer firm, unconditional offers. If you accept conditions, keep them short and require solid proof like pre-approvals.
Q: How fast should I respond to offers?
A: Immediately. Use written acceptance and confirm with the buyer’s agent.
Q: Do I need a lawyer before accepting an offer?
A: You should have one ready. Lawyers enforce closing and deal with disputes.
Q: What role does the real estate agent play?
A: Agents present offers, advise on timing and wording, and help secure deposits. A local agent who knows Georgetown market norms is critical.
Q: What if multiple buyers want my home?
A: Set an offer deadline. Consider best-and-final bids or conditional priority for unconditional offers.
For a tailored plan and immediate help navigating offers in Georgetown, contact tony@sousasells.ca or call 416-477-2620. Visit https://www.sousasells.ca to download a seller’s checklist and local market report.
