You’ve worked hard to get your home ready to sell, accommodated open houses and showings, and kept your house in pristine condition for weeks. Now you have an accepted offer in hand. You can see the light at the end of the tunnel, but what do you need to finally get there?
In this guide, you’ll learn what happens between an accepted offer and closing the deal. You’ll get answers to questions like “Can a seller back out of an accepted offer?” “What happens if a condition isn’t met?” and “What are the costs involved with closing?”
What Is an Accepted Offer?
An accepted offer is a legally binding contract formed when you, as the seller, agree to all the terms and conditions in the buyer’s offer to purchase your property. Once you’ve both signed the offer document, you’re committed to completing the sale according to those terms and conditions.
An accepted offer isn’t a done deal; there are several steps that need to be taken before or on the closing date. If the offer includes conditions, the offer is considered “conditional” until the conditions are met or waived by the buyer. After that, the offer becomes “firm,” and the buyer can no longer walk away from the deal.
Timeline from Accepted Offer to Closing
Sellers often wonder, “How long does it take to go from an accepted offer to a final deal?” The average closing is 60 days after the offer is accepted, but it can be longer or shorter depending on what’s agreed upon in the offer itself.
Occasionally, there’s a change to the closing date after offer acceptance, but that change has to be agreed upon by both parties. Some reasons for extending the timeline are:
- Financing delays, such as problems with mortgage approval.
- Home inspection issues, such as major repairs that need to be completed.
- Chain reactions, such as the seller’s deal on their new home being delayed.
- Title or legal issues, such as outstanding liens that need to be discharged.
The buyer and seller can also mutually agree to extend the closing to a date that’s more convenient for one or both parties, but they have to put the agreement in writing.
Can a Seller Back Out of an Accepted Offer?
A buyer can back out of an accepted offer during the conditional period. During this period, any conditions in the offer have to be satisfied, or they have to be waived by the buyer. If they aren’t, the buyer can negotiate a new price, make an agreement with the seller to push the closing date back, or walk away from the deal.
Conditions in the Accepted Offer
If there are conditions in the accepted offer, those conditions have to be satisfied before the deal can close. Each condition has an expiry date, and the buyer has to decide what to do about each condition before that date.
Common conditions are:
- Financing: Most buyers need to borrow money to purchase a home. A financing condition gives the buyer time to work on finalizing their mortgage. If they’re unable to get enough money to close the deal, they have the legal right to walk away. This condition is one of the reasons sellers prefer buyers with a mortgage preapproval.
- Inspection: At the buyer’s expense, a home inspector examines the property’s structure, systems, and overall condition. The buyer can use any major problems to renegotiate the price, ask for repairs, or use as justification for walking away from the deal.
- Status Certificate: condominium buyers may request a status certificate to verify the financial and legal circumstances of both the unit they’re buying and the building the unit is in. Issues like upcoming special assessments could justify price renegotiations.
- Other less common conditions include:
- Sale of current home.
- Verification of property boundaries through a new survey.
- Oil tank removal.
- Well water test and septic system inspection.
- Environmental assessment.
- Confirmation of building permits for renovations or additions that have been made.
- Verification that secondary suites are legal.
- Divorce settlement or estate settlement finalization.
After offer acceptance but before it becomes firm, the seller should keep the home ready to show, because backup offers might still come in. Some sellers continue to show their homes until all the conditions in the offer are removed, whereas others pause showings during this period. An experienced real estate agent can advise you on the best strategy.
Closing the Deal
After offer acceptance and the removal of all conditions, it’s time to prepare for closing. As the seller, you’ll need to:
- Prepare the property for the final walkthrough, ensuring that the home is accessible and that the items included in the sale are present and in working order.
- Coordinate with your lawyer or notary on any documentation you need to review or sign.
- Contact utility companies and arrange for final meter readings if necessary.
- Cancel snow removal, lawn care, and newspaper delivery services.
- Cancel or transfer home insurance.
- Forward your mail through Canada Post.
- Collect all key fobs, access codes, and instruction manuals or warranties for appliances and systems.
- Arrange your
On closing day, you’ll need to pay closing costs and fees, which include:
- Agent commissions.
- Legal fees.
- Adjustments for property taxes (this will be a reimbursement if taxes were prepaid).
- Adjustments for utilities.
- Mortgage discharge fee and/or early payment penalty.
These fees, penalties, and adjustments are normally calculated for you and deducted from the proceeds of the sale. You should review the figures for omissions and miscalculations before the final signoff.
An accepted offer is a huge step in the home-selling process, but it’s not time to sit back and relax just yet! If you have questions about the process and whether you’re missing any steps, be sure to check with your real estate agent; they’ll be happy to help you understand what’s going on and what your remaining responsibilities are.
