Missing the Requisition Date
An Agreement of Purchase and Sale includes a title search period. If a Buyer doesn’t submit the appropriate requisition within the “time Limit, then, it’s too late, the Buyer automatically inherits the Seller’s problem. The Seller doesn’t have to fix it.
As a result Buyer’s solicitors are anxious to search the title and submit requisitions as quickly as possible, so that they don’t miss the time limit.
There are several matters that are close to title problems but are not covered, and they are:
• Matters of conveyance
• Matters of contract
• Root of title issues
In all three cases, you need not submit requisitions within the prescribed time, you may submit requisitions at any time, up until closing.
Matters of Conveyance
If there is a mortgage registered on title which is not being assumed, it really need not be requisitioned. It still must be discharged whether or not it were requisitioned “in time”.
The difficulty is old mortgages which have long since been paid off. Someone forgot to get a discharge and register it against title. Now, it must indeed be requisitioned. It starts out as the Seller’s problem, but if it’s missed then this encumbrance becomes the Buyer’s problem.
Anything which is regular and ordinary in the normal course of conveyancing need not be requisitioned within the time limit.
For example you would not have to request a Deed. The Seller is under an obligation to execute a Deed no matter what.
Matters of Contract
Maters of Contract are terms that are specified in the Agreement. They have to be done. You don’t have to specifically request (requisition) them in a letter. They still have to be done.
For example, the Seller agrees to close the pool before closing. It’s possible that the Buyer’s lawyer will include this in a letter of requisitions, but nothing really turns on this.
If it’s missed and the time limit expires, “it’s a matter of contract”, so it still has to be done.
Buyer’s lawyers will frequently include these types of items simply to have a checklist of items to be confirmed on closing.
Matters Going to the Root of Contract
These are items going to the heart and substance of the deal. For example, the Seller doesn’t own the land.
The Seller thought he owned the land but that was in error.
Again, this is not a matter which requires a requisition within the time limit. If you miss the deadline, you still have your rights.
Brian Madigan LL.B., Broker