What is the Requisition Date in an Ontario Real Estate Transaction?

When reviewing an Agreement of Purchase and Sale for a property in Ontario, buyers and sellers may come across a date referred to as the requisition date or title search date.

Unlike the closing date, the purpose of the requisition date may not be immediately obvious to someone buying or selling a property.

However, it is an important deadline in a real estate transaction because it relates to the buyer’s opportunity to investigate title to the property and raise certain issues before closing.

 

What Is the Requisition Date?

The requisition date is generally the deadline set out in the Agreement of Purchase and Sale for the buyer to examine title and raise certain objections or requisitions concerning the property.

The specific rights of the buyer and obligations of the seller will depend on the wording of the Agreement of Purchase and Sale.

The requisition date normally occurs before the scheduled closing date, giving the parties time to address issues that may be identified during the lawyer’s review.

 

What Does the Buyer’s Lawyer Review?

As part of the purchase transaction, the buyer’s lawyer conducts a title search to review the registered ownership of the property and determine what registrations appear on title.

Depending on the property and the transaction, the lawyer may review matters such as:

• Whether the seller is the registered owner of the property;
• Existing mortgages or charges;
• Liens or other registered encumbrances;
• Easements;
• Restrictions or other registrations affecting the property; and
• Whether there are title issues that need to be addressed before closing.

The title and other searches that may be appropriate for a particular transaction can vary depending on the property, the Agreement of Purchase and Sale and the circumstances.

 

What Is a Requisition?

A requisition is essentially a request or objection concerning an issue affecting the transaction that the buyer requires to be addressed in accordance with the Agreement of Purchase and Sale.

For example, a title search may reveal an existing mortgage registered against the property. Depending on the circumstances and the terms of the agreement, arrangements may need to be made for that mortgage to be paid out and discharged in connection with the sale.

Other title issues may require additional documentation, clarification or steps before the transaction can be completed.

 

What Happens After a Requisition Is Made?

The fact that a requisition is raised does not necessarily mean that the transaction cannot close.

In many cases, the issue can be addressed before or as part of the closing process. The seller’s lawyer may provide information or documentation, arrange for a registered matter to be dealt with, or otherwise respond to the requisition in accordance with the Agreement of Purchase and Sale.

Depending on the issue, it may be resolved relatively easily, while more complicated title matters may require additional steps. The appropriate response will depend on the particular issue and the terms of the agreement.

 

Can Title Issues Still Arise After the Requisition Date?

The passing of the requisition date does not necessarily mean that every issue affecting title can no longer be raised. Whether an issue may be raised after the requisition date depends on the nature of the issue, when it arose or was discovered, the wording of the Agreement of Purchase and Sale and the applicable law.

If a title issue is identified after the requisition date, a real estate lawyer can review the circumstances and advise on the rights and obligations of the parties

 

How Minhas Lawyers Can Help

Minhas Lawyers Professional Corporation assists buyers and sellers with real estate transactions throughout Ontario.

Our real estate lawyers review Agreements of Purchase and Sale, conduct the applicable title searches, identify issues affecting title, communicate with the other party’s lawyer and assist clients through the legal steps required to complete their transaction.

Contact

For assistance with a purchase, sale or other real estate transaction, contact Minhas Lawyers.

Email: [email protected]
Phone: (905) 671-9244

Serving Mississauga, Brampton, Toronto, the Greater Toronto Area, and clients throughout Ontario.

This article is provided for general informational purposes only and does not constitute legal advice. The applicable deadlines, searches, requisitions and rights of the parties depend on the Agreement of Purchase and Sale, the property and the particular circumstances of the transaction. You should obtain legal advice regarding your particular circumstances.