Real estate is full of terms that get used without ever being explained. These short guides cover a few of the ones that come up most often — no question is too small to ask me directly, either.
What is a conditional offer?
A conditional offer is an offer to purchase that includes one or more conditions that must be satisfied, or formally waived, before the deal becomes binding. The two most common conditions are financing and home inspection.
A financing condition gives the buyer a set number of days to confirm their mortgage is approved for that specific property. An inspection condition gives the buyer time to have the home professionally inspected and to walk away, or renegotiate, if something significant turns up. If a condition isn't met within its deadline and isn't waived, the buyer can withdraw from the deal and their deposit is returned.
Conditions exist to protect the buyer from committing to a purchase before the important unknowns are resolved. I walk every buyer through which conditions make sense for their situation before we write an offer, and explain each deadline in plain terms — never assuming you already know what a given condition means.
What is a deposit, and how is it different from a down payment?
A deposit is a sum of money a buyer submits along with their offer to purchase, as a show of good faith that they intend to complete the deal. In Ontario, deposits are typically held in trust by the seller's brokerage and are credited toward the purchase price when the sale closes. If the deal doesn't close because a condition wasn't met, the deposit is returned to the buyer; if a buyer walks away without a valid reason, the deposit can be at risk.
A down payment is a different thing entirely — it's the portion of the total purchase price that a buyer pays at closing out of their own funds, rather than through their mortgage. In Canada, the minimum down payment depends on the purchase price. The deposit you paid earlier becomes part of your down payment at closing; it isn't an additional cost on top of it.
Every deal is a little different, and specific deposit amounts and timelines should always be confirmed with your lawyer before you sign anything. I'll make sure to walk through the numbers for your specific offer before we move forward.
What is the difference between a broker and a salesperson in Ontario?
In Ontario, everyone who trades in real estate is registered with the Real Estate Council of Ontario (RECO), and there are two classes of registration: salesperson and broker. A broker has completed additional education and qualifying requirements beyond the salesperson registration, and in many brokerages a broker takes on additional oversight responsibilities.
I have been RECO-registered since 2018 and hold the Broker class of registration with eXp Realty of Canada Inc. Whichever registration class your agent holds, RECO registration means they've met the province's education and conduct standards — it's always worth confirming with anyone you're working with.
Have a question that isn't covered here?
These are general explanations, and every transaction has its own details. If you'd like to talk through your specific situation, please don't hesitate to reach out — call or text (647) 648-4552, or email anis.khairkhwa@gmail.com. I'm always happy to assist.
Last updated: July 2026