- Before a property can transfer to a new owner, the buyer's lawyer conducts a title search — a review of the registered history of the land going back through prior owners, mortgages,…
- A requisition is a formal written request from the buyer's lawyer to the seller's lawyer asking for a problem found during the title search to be fixed, explained, or removed before closing.
- The Agreement of Purchase and Sale (the standard OREA form used in most Ontario transactions) sets a requisition date — a specific calendar date by which the buyer's lawyer must raise…
Most buyers in Ontario have heard the word "closing" but far fewer know what happens in the weeks between signing and getting the keys. One of the most important legal steps in that window is the title search — and when that search turns something up, the buyer's lawyer sends what is called a requisition letter (also known as "raising requisitions").
If you have received a requisition letter, or your lawyer has told you one needs to go out, here is what that means and why it matters.
The Title Search: Setting the Stage
Before a property can transfer to a new owner, the buyer's lawyer conducts a title search — a review of the registered history of the land going back through prior owners, mortgages, liens, easements, rights-of-way, judgments, and other interests registered against the property at the Ontario land registry. The goal is to confirm that the seller actually owns what they are selling, that there are no claims or encumbrances the buyer has not agreed to take on, and that the title being transferred is clean.
Ontario uses two land registration systems depending on the area: the older Registry system and the newer Land Titles system. Most of the province has converted to Land Titles, which provides stronger title guarantees, but the search process is similar in both.
What Is a Requisition?
A requisition is a formal written request from the buyer's lawyer to the seller's lawyer asking for a problem found during the title search to be fixed, explained, or removed before closing. Collectively, these requests are called "requisitions" and the letter containing them is the requisition letter.
Think of it as a punch list — except instead of drywall touch-ups, it covers things that could affect the buyer's legal ownership of the property.
The Requisition Date: A Hard Deadline
The Agreement of Purchase and Sale (the standard OREA form used in most Ontario transactions) sets a requisition date — a specific calendar date by which the buyer's lawyer must raise any title requisitions. This date is typically set a week or two before the closing date, though it varies.
The requisition date is not a suggestion. If the buyer's lawyer misses it, the buyer generally loses the right to raise most title objections and is bound to close on title as-is (subject to very limited exceptions, such as a new encumbrance registered after the search date). This is one reason why it is important to retain your real estate lawyer early — delays in getting retainer documents and mortgage instructions back to the lawyer can compress the time available for a thorough search.
What Gets Raised in a Requisition Letter?
Requisitions can cover a wide range of title issues. Common items include:
Outstanding Mortgages and Lines of Credit
This is the most routine requisition. The search will usually reveal the seller's existing mortgage(s). The buyer's lawyer requires written confirmation — called a mortgage discharge statement — showing exactly how much is needed to pay out the mortgage on closing, along with an undertaking from the seller's lawyer to register the discharge after closing. Most residential deals involve this.
Construction Liens
A construction lien (sometimes called a builder's lien) can be registered by a contractor, subcontractor, or supplier who claims they have not been paid for work done on the property. If a lien appears on title, it must be addressed — paid out, bonded over, or vacated — before the buyer takes title. The buyer has no obligation to inherit someone else's unpaid construction bills.
Executions (Judgments)
An execution is a court-ordered lien registered against a person, not just a property. If someone with the same name as the seller has a judgment registered, the buyer's lawyer will raise a requisition asking the seller to confirm by statutory declaration that the execution is not against them, or to have it cleared.
Survey Issues and Encroachments
If a survey reveals that a fence, shed, or addition crosses the property line — onto a neighbour's land or into a municipal setback — that encroachment may be requisitioned. Depending on severity, fixing an encroachment can range from obtaining a letter of comfort from a neighbour to physically moving a structure.
Planning Act Compliance
Ontario's Planning Act controls how land can be subdivided and sold. If a historical deed severed part of a parcel without proper planning approval, or if the description does not match the registered parcel, the buyer's lawyer will flag it as a requisition.
Easements and Restrictive Covenants Not Disclosed in the Agreement
If the search reveals a registered easement (a right for another party to use part of the property) or a restrictive covenant (a limitation on how the land can be used) that was not disclosed when the deal was made, the buyer's lawyer may raise it — particularly if it materially affects the buyer's intended use of the property.
Other Registered Interests
Environmental notices, heritage designations, hydro corridors, and various statutory charges can also appear on title and may need to be addressed or acknowledged before the buyer closes.
How the Seller Responds
Once the requisition letter is received, the seller's lawyer reviews each item and responds in writing. For each requisition they will typically:
- Satisfy it — provide the discharge statement, statutory declaration, or documentation needed to resolve the issue
- Dispute it — explain why the buyer's concern is unfounded or already addressed in the agreement
- Negotiate — propose a holdback, undertaking, or price adjustment if the issue cannot be fully resolved before closing
A "holdback" means a portion of the purchase price is held in trust by the lawyers after closing, to be released once a specific item (like a mortgage discharge) is registered. Undertakings are written promises by a lawyer to take a specific action after closing, backed by their professional responsibility. Both are common tools for completing deals where minor issues remain outstanding on closing day.
What Happens If a Requisition Cannot Be Resolved?
If a serious title defect cannot be resolved and the buyer is not willing to accept title as-is, the buyer may have the right to terminate the agreement — but only if the problem was raised on time (before the requisition date) and genuinely goes to the root of title. This is a narrow right and should not be confused with a general right to walk away from a deal.
This is exactly why your real estate lawyer's review process matters. Identifying an issue late — after the requisition date has passed — leaves the buyer with far less leverage.
Frequently asked questions
Do all real estate deals have requisitions?
Every deal involves a title search, but not every search turns up problems requiring a requisition letter. Many closings proceed with only the routine mortgage discharge requisition, which is resolved quickly. The requisition letter is only as long as the issues found.
Who pays to fix a title problem found in the search?
Generally, the seller is responsible for delivering good title to the buyer. If clearing a lien or resolving a planning issue requires expense, that typically falls to the seller. The exact allocation depends on the wording of the agreement and what was disclosed before signing.
What is the difference between a requisition and a condition?
A condition (like a home inspection or financing condition) is a pre-agreed out in the Agreement of Purchase and Sale that must be met before the deal firms up. A requisition is a post-search request raised by the buyer's lawyer after the deal has become firm. They operate at different stages of the transaction.
Can my lawyer extend the requisition date?
The requisition date can be extended by mutual agreement between the parties, but the seller is not required to agree. If circumstances require more search time, your lawyer should raise this early and negotiate an extension before the original deadline passes.
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