Buying a home is one of the biggest financial decisions you’ll ever make, and with it comes a lot of paperwork. When you’re ready to put in an offer, the legal forms are filled with terms that can feel confusing at first glance. Understanding what they mean can take away a lot of stress and help you feel more confident in the process. Here are some of the most common items you’ll see in an Ontario real estate offer, explained in plain language.

Deposit

The deposit is money you provide once your offer is accepted, usually within 24 hours. It shows the seller you’re serious about buying their home. In Ontario, deposits are typically 3–5% of the purchase price. The funds are held in trust, usually by the listing brokerage, and are credited toward your down payment on closing day.

Closing Date

The closing date is when the home officially changes hands. On that day, the purchase funds are transferred, the title is registered in your name, and you receive the keys. Closing dates can be as short as a few weeks or as long as several months, depending on what works best for both you and the seller.

Title Search Date

Before closing, your lawyer will complete a title search to make sure there are no issues with the property. This search confirms that the seller legally owns the home and checks for any liens, unpaid debts, or legal claims that could affect ownership. The title search date is typically set for about two weeks before closing, giving enough time to resolve anything that might come up.

Inclusions and Exclusions

This section spells out exactly what comes with the home. Inclusions are items the seller has agreed to leave, such as appliances, window coverings, or light fixtures. Exclusions are things the seller will take with them — maybe a favourite chandelier or the basement freezer. Having this written down ensures everyone is on the same page and avoids last-minute surprises.

Adjustments

Some costs are prepaid by the seller, such as property taxes or utilities. On closing, these amounts are adjusted so each party pays for their share. For example, if the seller has already paid property taxes for the full year, you’ll reimburse them for the portion of time that falls after your closing date. These adjustments are handled by the lawyers but are part of the offer to purchase.

Irrevocable Period

Every offer has a deadline for the seller to respond, called the irrevocable period. During this time, the buyer can’t withdraw the offer. The seller must either accept, reject, or counter before the deadline. If they don’t respond in time, the offer expires automatically.

Final Thoughts

While an offer may look complicated, most of the terms are standard and designed to protect both the buyer and the seller. Knowing what these items mean and how they affect your purchase can help you feel prepared and confident when you’re ready to make your move.