What Happens After an Offer Is Accepted?

A Step-by-Step Guide for Sellers and Buyers

Congratulations—your offer has been accepted! This is a huge milestone in any real estate transaction, but it’s not the finish line just yet. Here’s what happens next, how conditions are handled, and what you need to know about deposits.

1. The Deal: From Accepted Offer to Firm Sale

Once both parties sign the Agreement of Purchase and Sale (APS), you have a legally binding contract—provided all conditions are met. If your offer was “firm” (no conditions), the deal is now locked in and both sides are committed to closing.

If the offer was “conditional,” the sale isn’t final until all conditions are fulfilled or waived within the agreed time frame. Common conditions include:

• Financing: The buyer must secure mortgage approval.
• Home Inspection: The property must pass a professional inspection to the buyer’s satisfaction.
• Status Certificate (for condos): The buyer reviews the condo’s financial and legal status.

During this conditional period, both sides work to satisfy the terms. If a condition isn’t met, the buyer (or seller, depending on the condition) can walk away with no penalty.

2. The Deposit: How It’s Handled

The deposit is a crucial part of the transaction. Here’s how it works:

• Amount: Typically, the deposit is about 5% of the purchase price, but this can vary.
• Timing: The deposit is usually due within 24 hours of offer acceptance, unless otherwise specified in the agreement. Sometimes it’s submitted “herewith” (with the offer), or there may be a schedule for additional deposits if conditions are met.
• Who Holds It: The deposit is paid to the listing brokerage and held in their trust account until closing.
• What It Means: The deposit shows the buyer’s good faith and commitment to the deal. If the transaction closes, the deposit is credited toward the purchase price. If the deal falls through due to unmet conditions, the deposit is returned to the buyer.

3. Fulfilling Conditions

If there are conditions in the agreement, here’s what to expect:

• Home Inspection: The buyer arranges for a professional inspection. If issues are found, the buyer can request repairs, a price reduction, or walk away.
• Financing: The buyer finalizes mortgage approval. Lenders may require an appraisal.
• Other Conditions: Any other agreed-upon conditions (such as reviewing documents) must be satisfied.

Once all conditions are met or waived in writing, the deal becomes “firm.” At this point, both parties are fully committed to closing.

4. Preparing for Closing

After the deal is firm:

• Lawyers Get Involved: Both sides’ lawyers handle title searches, prepare documents, and coordinate the transfer of funds and ownership.
• Final Walkthrough: The buyer may do a final visit to ensure the property is in the agreed-upon condition.
• Statement of Adjustments: Lawyers prepare this document to account for prepaid expenses (like property taxes) and calculate the final amount due on closing.

5. Closing Day

On closing day, the buyer’s lawyer transfers the remaining funds (including the deposit) to the seller’s lawyer. The deed is registered in the buyer’s name, and the buyer receives the keys. The transaction is now complete!

Key Takeaways

• After offer acceptance, focus on fulfilling any conditions and ensuring the deposit is delivered on time.
• The deposit is held in trust and credited toward the purchase price on closing.
• Once conditions are met, the deal is firm and both parties prepare for closing day.
• Your real estate lawyer and agent will guide you through each step to ensure a smooth transaction.

If you have questions about the process after your offer is accepted, reach out anytime—we’re here to help you navigate every step with confidence!