Waiver

A waiver is a buyer's written notice giving up a condition in an offer, which removes that protection and makes the purchase contract firm and legally binding. In British Columbia the same step is usually called subject removal. Until conditions are waived, the deal is not final and either side can generally walk away within the stated deadline.

How a waiver works in a Canadian purchase

Most offers to buy a home in Canada are written with conditions — commonly financing, a satisfactory home inspection, a property survey, a status certificate review for a strata or condominium unit, and sometimes the sale of the buyer's current home. Each condition gives the buyer a window to investigate and a lawful exit if something fails.

When the buyer is satisfied, they sign a waiver (sometimes called a notice of fulfilment) and deliver it to the seller before the condition's expiry date. The deposit then usually becomes non-refundable, and the parties move toward the completion date. Missing the deadline without a waiver or a written extension generally leaves the offer expired and the deposit returnable, although the exact outcome depends on the wording of the contract.

Why it matters to a borrower

Waiving a financing condition is the riskiest move a buyer can make. If the lender declines the mortgage after the waiver is signed, the buyer still owes the purchase price. Remedies can include losing the deposit, being sued for damages, or scrambling into alternative lending at a higher cost.

Waive the financing condition: firm deal, but full risk if the lender declines.
Waive the inspection condition: firm deal, but no negotiated repair credit for defects found later.
Keep the condition: the deal stays conditional until the deadline passes.

Before you waive a condition

A mortgage pre-approval is not the same as a firm lender commitment. Borrowers are often advised to have a signed commitment letter in hand, or a documented backup plan, before releasing a financing condition. Confirm current requirements and timelines with your lender, and treat this page as general information rather than advice.

Frequently asked questions

What does it mean to waive a condition in a real estate offer?

It means the buyer formally gives up a stated condition, such as financing or a home inspection, so the offer becomes firm. Once the waiver is delivered before the deadline, the buyer is committed to completing the purchase and the deposit generally becomes non-refundable.

Is a waiver the same as subject removal?

Yes, in substance. Subject removal is the term used mainly in British Columbia, while waiver or notice of fulfilment is common in other provinces. Both describe the buyer releasing conditions so the contract becomes unconditional and binding.

Can I get my deposit back if I waive financing and the mortgage is declined?

Generally no, because the contract is firm once the condition is waived. Whether any money is recoverable depends on the exact contract wording and the circumstances, so buyers in that position usually seek their own legal advice rather than relying on a general rule.