Our Team
Blogs & News
Contact Us

Requisitions are a crucial part of the real estate transaction process in Ontario. These inquiries seek clarification or correction of any issues or discrepancies found during the title search, such as outstanding mortgages, property taxes, and compliance with zoning bylaws. There are a variety of nuances regarding requisitions, which will be outlined in this blog. Understanding requisitions is vital for buyers and sellers in Ontario’s real estate market.

What is a Requisition?

A requisition refers to a formal request for information or clarification regarding the property’s title or related documents, typically made by the purchaser’s lawyer to the vendor’s lawyer. Requisitions are written after the completion of the title search, any off-title searches, and return of letter enquiries. As mentioned above, the purpose of a requisition is to rectify any title defects and any other problems that need to be resolved in accordance with the purchase and sale agreement.

Requisitions are typically subject to strict time-based restrictions, so they must be forwarded promptly. If received late by the vendor’s lawyer, the purchaser may forego any right to make complaints. It is always important to send a requisition as soon as possible.

Types of Requisitions

There are three types of requisitions:

  1. Title requisitions;
  2. Conveyancing requisitions; and
  3. Contract requisition.

Title Requisitions

A title requisition is a formal request for specific information or documentation related to the ownership and status of a property’s title. Any such requisition must be submitted per the terms of the purchase and sale agreement. The Ontario Real Estate Association form (the standard agreement of purchase and sale) provides space for a mutually agreed-upon date and time to serve as a deadline to receive a title requisition. However, if one is not set, the Vendors and Purchasers Act sets the deadline to 30 days after acceptance.

Root title requisitions are a subset of title requisitions which pertain to issues in the title that would prevent proper conveyancing. Unlike the above, these requisitions are not subject to strict deadlines and they can be submitted up to the transaction date.

Conveyancing Requisitions

Conveyancing requisitions are formal requests for information or clarification related to the legal aspects of a property transfer. They cover a wide range of topics, including the property’s title, encumbrances such as mortgages or easements, zoning and planning issues, outstanding taxes, and compliance with local regulations. They are typically submitted for matters within the seller’s control. For example, a conveyancing requisition could be submitted if an old, fully paid mortgage was registered on title but was not discharged.

As with root title requisitions, conveyancing requisitions can also be submitted up to the date of the transaction.

Contract Requisitions

Contract requisitions refer to requests for clarification or additional information regarding the terms and conditions of the purchase and sale agreement. Terms can vary between each transaction, depending on the buyer’s specific needs. For example, contract requisitions can be used to rectify the following potential issues:

  • The dimensions of the property are different than those described in the agreement of purchase and sale;
  • Clarification of whether there are any outstanding work orders on the property;
  • Clarification of closing date; and
  • Clarification about what chattels and fixtures are included in the transaction.

Conveyancing requisitions are subject to a deadline if set by the parties. If not, such requisitions can be submitted up to the date of the transaction.

In essence, these requisitions are used to request performance or clarification on terms included in the contract.

The Rules Regarding Requisitions

Sending and replying to requisitions include formal requirements that must be adhered to. Otherwise, the purchaser or vendor may lose the right to make that specific complaint. When sending requisitions, they must be in writing and sent to the opposing party’s lawyer, typically within a reasonable time after reviewing the relevant documents. Requisitions should be clear, specific, and relate directly to the transaction’s legal aspects. The recipient of the requisitions must respond promptly and accurately, providing all requested information or documentation.

Contact Oakville Property Lawyers at Bader Law for Superior Representation in Real Estate Transactions

Requisitions can be fraught with difficulty and nuance so it is important to work with an experienced real estate lawyer during your transaction. At Bader Law, our seasoned team of real estate lawyers regularly represent individual and corporate buyers in real estate transactions in Mississauga and throughout the Greater Toronto Area. Our experienced real estate lawyers take strategic action to help clients navigate the uncertainties involved in residential and commercial real estate transactions. From reviewing an Agreement of Purchase and Sale to resolving title insurance matters, our team is ready to help and will ensure your real estate matters are tended to in a timely and professional manner. To schedule a consultation with one of our team members, contact us online or call our office at 289-652-9092.