The Short Answer
The highest offer is not always the best offer. The red flags that most often cost Markham sellers time or money are: a small deposit or a deposit that arrives late, long or open-ended conditions, a condition on the sale of the buyer's own home without a proper escape clause, an assignment right you did not notice, requests for early access or keys, a buyer with only a pre-approval on a price the appraisal may not support, and money arriving from third parties or offshore accounts without explanation. Under the standard Ontario agreement, a deposit due "upon acceptance" must arrive within 24 hours. Ontario courts have held buyers who fail to close responsible for the seller's losses, but collecting can take years. The goal is to choose a buyer who will actually close.
Want this applied to your own property? Call the Kaizen Real Estate Team at (647) 370-8885.
Why Buyer Quality Matters More in 2026
In a slower market, more deals fall apart. Buyers lose financing, appraisals come in low, or a buyer simply changes their mind. In August 2026, HouseSigma data reported by REMI showed about 70% of Markham sales closing below asking. When prices are soft, a buyer who overpays on paper is more likely to struggle on closing day.
Michael John Lau, a REALTORĀ® with the Kaizen Real Estate Team, one of the most active real estate teams in Markham and York Region, reviews every offer with sellers on five points before price: deposit, conditions, closing date, financing and who the buyer is. A slightly lower offer from a strong buyer often beats a higher one from a weak buyer.
Questions About Your Situation?
Every Markham property and every timeline is different. Call the Kaizen Real Estate Team at (647) 370-8885 and speak to a REALTORĀ® who works this market daily.
Red Flags in the Offer
1. A small deposit
The deposit is the buyer's commitment. If the buyer walks away, it is usually the first money available to the seller. A very small deposit on a large price gives a buyer little reason to stay. Ontario's Court of Appeal refused to return a $400,000 deposit, about 5.5% of the price, to a buyer who failed to close in 1854329 Ontario Inc. v. Cairo, 2022 ONCA 744.
2. A late deposit
Under the standard Ontario Agreement of Purchase and Sale, "upon acceptance" means the buyer must deliver the deposit to the deposit holder within 24 hours. The deposit is held in the deposit holder's real estate trust account. If it does not arrive on time, call your agent and lawyer right away.
3. Long or vague conditions
A five-business-day condition for financing or inspection is common. Conditions of two or three weeks, or conditions such as "satisfactory to the buyer in their sole discretion" without a short deadline, keep your home off the market while the buyer decides.
4. A condition on the sale of the buyer's home
This can work if the agreement includes an escape clause. It lets you keep marketing the home and, if a better offer arrives, give the first buyer a short notice period, often 48 to 72 hours, to waive the condition or step aside. Without that clause, your sale depends on someone else's sale.
5. An assignment right you did not agree to
The standard Ontario resale agreement does not expressly prohibit assignment. If you do not want the buyer to sell their right to buy your home to someone else before closing, add a restriction in Schedule A.
6. Requests for early access or keys
Buyers sometimes ask to move belongings in or start work before closing. Until closing, the home remains at the seller's risk under the standard agreement. Handing over keys early can create legal and insurance problems. Visits for measuring are normal; possession before closing is not.
7. A pre-approval treated as a guarantee
A mortgage pre-approval is not a final commitment. The lender still verifies the buyer's finances and needs the appraisal to support the price. A firm offer at a price well above recent sales carries appraisal risk for the buyer, which can become closing risk for you.
Red Flags in the Money
FINTRAC, Canada's anti-money-laundering agency, lists warning signs for real estate transactions. Several are easy to spot:
- A buyer who asks for a lower price to be recorded with the difference paid "under the table."
- A deposit cheque from someone other than the buyer, a spouse or a parent.
- Funds from an unusual source or offshore bank with no clear explanation.
- A buyer who will only sign documents remotely and never meets anyone.
- A buyer who over-explains the purchase or rushes to close without a good reason.
Brokerages must verify the identity of their clients, and anyone paying $10,000 or more in cash. If anything feels wrong, tell your agent and lawyer before signing.
Neeraj Moolchandani on the Clause Sellers Miss
Neeraj Moolchandani, REALTORĀ® at Kaizen Real Estate, checks every offer for assignment rights. The standard Ontario resale agreement does not expressly prohibit assignment.
If a seller does not want a buyer to resell their right to buy the home before closing, the restriction has to be added in Schedule A. Neeraj raises it before offers arrive, so it is part of the plan rather than a scramble.
Protect Yourself From Title and Identity Fraud
RECO warns that title fraud is a particular risk for owners with no mortgage. Use an Ontario real estate lawyer, consider title insurance, and never send money or documents based on an email alone. Report suspected fraud to RECO, the police and the Canadian Anti-Fraud Centre at 1-888-495-8501.
What Happens If a Buyer Walks Away
Ontario courts take firm deals seriously. In Philp v. Osungade, 2024 ONSC 3064, a buyer who failed to close on a $1,035,000 home was ordered to pay the seller about $159,900, after crediting the $25,000 deposit, because the home later resold for $850,000. The court also held the seller had no duty to extend the closing date. Ontario's Court of Appeal has upheld terminations for delays as short as 35 minutes past the closing deadline when time was of the essence.
Winning in court is not the same as getting paid, and the process takes time. Choosing a strong buyer at the start is still the best protection.
Have an Offer in Hand?
The highest offer is not always the best offer. The Kaizen Real Estate Team reviews deposit, conditions and financing with you.
How to Compare Offers Fairly
Factor | Stronger | Weaker |
|---|---|---|
Deposit | Meaningful amount, delivered within 24 hours | Small, or delayed |
Conditions | Firm, or short and specific | Long, vague or on the sale of another home |
Financing | Lender commitment, or a large down payment | Pre-approval only, at a stretch price |
Closing date | Matches your plans | Requires you to bridge or move twice |
Other terms | Standard | Assignment rights, early possession, unusual clauses |
In a multiple-offer situation, Ontario rules require your brokerage to tell every person making an offer how many competing offers there are. Offer details can be shared only with your written direction.
Your own disclosure matters too. What sellers should disclose by law explains your side of the deal. If speed is your priority, the five ways to sell a Markham house fast compares your options. For the full process, see how to sell your house in Markham in 2026.
Next Steps
- Selling your Markham home ā how Michael reviews and negotiates every offer.
- Request a free home evaluation ā know your value so you can judge any offer.
- Get a second opinion on an offer ā a quick, confidential review.