Understanding the Escape Clause

Stewart Blair

1 week ago

Understanding the Escape Clause

What London, Ontario Home Sellers Need to Know

The London, Ontario real estate market has shifted — and with that change, more offers with “Sale of Home” conditions are reappearing. While these conditions can help buyers navigate today’s market, they also introduce new considerations for sellers. One of the most important? The Sale of Home Condition with an Escape Clause. Understanding the Escape Clause is very important in today’s real estate market.

In this post, we’ll explain what an escape clause is, how it protects sellers, and what you should do to prepare if you receive a conditional offer.

What Is an Escape Clause?

An Escape Clause is a provision added to an Agreement of Purchase and Sale that serves two purposes.

Allow a seller to continue marketing their property and accept other offers even after agreeing to a conditional home sale.
Sets out the conditions to force the initial accepted offer to remove its condition and make way for the newer accepted offer. This is typically done within a time frame of 24 to 48 hours.

How does this work in reality?

Mrs. Home Seller have accepted an offer on their house at 123 Homes Street.
This offer is “conditional” on Mrs. Buyer selling her home.
1. It includes the “sale of home” condition and a 24-hour escape clause.
Mrs. Home Seller continue to market the home for sale.
1. After a week, Mr. Buyahome makes another offer on 123 Homes Street, which is accepted without any conditions.
Mrs. Home Seller now issue the Escape Clause waiver to Mrs. Buyer
1. Regardless of whether they have sold their home or not. They now have 24 hours to remove the condition or allow the other buyers to purchase the property.

Why Are We Seeing More Sales of Home Conditions in London, Ontario?

During the peak seller’s market, multiple offers and firm deals were the norm — buyers couldn’t risk adding conditions.

However, with increased inventory, longer days on market, and more balanced conditions in London and surrounding areas, buyers are regaining confidence and leverage to include a Sale of Home Condition.

This clause assures buyers that they won’t be stuck owning two homes — but it can leave sellers questioning if their sale will actually go through.

That’s where the escape clause comes in — it balances the playing field.

How the Escape Clause Protects Sellers

Adding an escape clause ensures that you, as the seller, stay in control of your property’s sale. Here’s how it works to your advantage:

You can still show your home

Even after accepting a conditional offer, your property remains active on the market. That means you can continue to attract new buyers — including those without conditions.

You maintain flexibility

If another qualified buyer comes along, you can trigger the clause and give the first buyer a short window to firm up. If they can’t, you’re free to move forward with the new offer.

It speeds up decisions

Buyers in a sale-of-home condition may move faster to price their home aggressively or remove conditions early once they know there’s interest from others.

What Home Sellers Should Do to Prepare

If you’re selling your home in London, Ontario, and receive an offer with a Sale of Home Condition, don’t panic — make sure you’re protected.

Talk to your REALTOR® about timing.

Escape clauses usually range between 24 to 72 hours. Shorter timelines put more pressure on buyers, while longer ones can make your offer less flexible. Your agent will help determine what’s right for your situation.

Keep marketing your home.

Until conditions are waived, don’t stop showings. Keeping your listing active ensures you continue to build momentum — and potential backup offers.

Understand the risks and rewards.

Conditional offers can work in your favour if the buyer’s home is already listed or nearly sold. But they can also delay your sale if their property sits on the market. Your REALTOR® can help assess the strength of the buyer’s situation before accepting.

Final Thoughts: A Smarter Way to Sell in a Changing Market

As London’s housing market transitions toward a more balanced environment, both buyers and sellers need to adopt a strategic approach.

For sellers, understanding tools like the Escape Clause can mean the difference between sitting on the market and moving forward with confidence.

If you’re considering selling your home and want to protect your interests while keeping opportunities open, our team at Elevate Real Estate Group can help you navigate conditional offers and negotiate terms that work for you.

📞 Contact us today to learn how we can position your home for success — even in a shifting market.