Can a home seller change their mind after signing in Toronto? — Trusted Advice from Khoa Le, Real Impact Group

Question: Can a home seller change their mind after signing in Toronto?
Answer: Once you’ve signed an Agreement of Purchase and Sale in Toronto, you generally cannot change your mind without consequences. Unless the contract includes conditions, the buyer fails to meet their obligations, or both parties agree to cancel, backing out could result in lawsuits and financial penalties.

Introduction

When you sell home in Toronto, you may experience second thoughts after signing the contract. Maybe you’ve had a change in financial circumstances, or you’ve realized you’re not ready to move.

But can you actually change your mind after signing? The short answer is that real estate contracts in Ontario are legally binding, and canceling without a valid reason can have serious consequences. In this guide, Khoa Le and the Real Impact Group explain your rights, the risks, and possible alternatives if you’re reconsidering your sale.

The Agreement of Purchase and Sale

The Agreement of Purchase and Sale (APS) is the legal contract that binds both buyer and seller once signed. It specifies the purchase price, closing date, and any conditions.

• If the contract is conditional (e.g., on financing or inspection), and those conditions aren’t met, the deal can fall through.
• If the contract is firm, meaning no conditions, then both parties are obligated to close.

Changing your mind without cause puts you in breach of contract.

Situations Where a Seller Can Change Their Mind

There are limited situations where you may be able to change your mind after signing:

1. Mutual Agreement — Both parties agree in writing to cancel the deal.
2. Buyer Fails to Meet Obligations — If the buyer doesn’t deliver the deposit or meet conditions, you may have grounds to cancel.
3. Escape Clauses — If your lawyer included a special clause, you may have an “out” under certain conditions.

Outside of these scenarios, cancelling is risky.

Risks of Changing Your Mind

If you walk away without legal grounds, the consequences can be significant:

• Legal Action: The buyer can sue for damages, including the difference if the home later sells for less.
• Costs: You may be liable for the buyer’s legal, inspection, and appraisal expenses.
• Reputation: Backing out could harm your credibility in the Toronto real estate market.

For example, if you sold a home in North York for $1.2M, then backed out and later resold for $1.1M, the original buyer could sue you for $100,000 plus costs.

Why This Matters in Toronto’s Market

Toronto’s average home price in 2025 is around $1.1M. With such high property values, even small differences between signed contracts and resale prices can translate into tens of thousands of dollars in liability.

This is why sellers must think carefully before signing and ensure they are truly ready to move forward.

Alternatives to Backing Out

If you’re having second thoughts, consider these alternatives instead of breaching the contract:

• Negotiate a Closing Date Change: Buyers may be flexible if your circumstances have shifted.
• Offer Concessions: Cover part of closing costs or provide a credit instead of walking away.
• Rent-Back Agreement: Sell the home but stay as a short-term tenant until you’re ready to move.
• Discuss Options with Your Realtor: Khoa Le and the Real Impact Group can guide you toward solutions that protect your interests.

How Khoa Le and the Real Impact Group Can Help

Changing your mind after signing a contract is stressful, but you don’t have to navigate it alone.

Khoa Le and the Real Impact Group bring deep experience in Toronto’s real estate market, from Bathurst Manor to The Beaches and beyond. We work closely with lawyers and mortgage professionals to help sellers explore alternatives that minimize risk while keeping your goals in mind.

Conclusion

While it’s natural to reconsider after signing, Toronto real estate contracts are binding, and backing out can be costly. Only in limited circumstances can a seller change their mind without penalty.

If you’re unsure about your decision, reach out to Khoa Le and the Real Impact Group for confidential, expert advice. We’ll walk you through your options and help you protect your finances and peace of mind.

📞 Contact Khoa Le and the Real Impact Group today for personalized guidance on selling your Toronto home.