What Is a Requisition Letter and Why Did My Closing Lawyer Send One in Ontario?
A requisition letter is a written list of questions or problems your lawyer raises after searching the title to the property, asking the other side to explain, correct or prove something before closing. It is a normal step, and receiving one does not mean the deal is in trouble. Who must fix an item and how long it takes depend on your agreement of purchase and sale and on what the issue is.
Typical issues include a mortgage that must be discharged, unpaid taxes or utilities, or a registration problem. Only authorized Teraview account holders and their registered users, such as lawyers and conveyancers, can create and submit documents in Ontario's electronic system, so your lawyer handles the paperwork. If a mortgagee cannot be found, or a proper discharge cannot be obtained without undue delay, a court may allow the amount due to be paid into court and order the mortgage discharged.
An unresolved requisition can delay closing, so reply quickly to your lawyer's questions. Whether the closing date moves, and who bears any cost, depends on your agreement and the issue, so ask your lawyer before assuming anything.
Key takeaways
- A requisition letter lists title questions or problems to be explained, corrected or proved before closing, and it is a normal step.
- Only authorized Teraview account holders and their registered users, such as lawyers and conveyancers, can create and submit documents electronically.
- If a mortgagee cannot be found or a proper discharge cannot be obtained without undue delay, a court may order the mortgage discharged once the amount due is paid into court.
- Reply quickly to your lawyer, because whether the closing date moves and who bears any cost depend on your agreement.