Responding to Title Requisitions as a Seller in Ontario

A few weeks before your closing date, your lawyer forwards a document from the buyer's lawyer: a requisition letter. It lists questions and concerns about your property's title, and some of them you have never heard of. What happens now? Are you required to fix everything on that list? What if you can't?

Title requisitions seller obligations in Ontario are one of the more technical parts of a residential transaction — and one of the more common sources of last-minute closing stress. Understanding the process before it arrives means you will not be making urgent decisions under deadline pressure.

What Is a Requisition Letter?

A requisition letter is a formal written notice from the buyer's lawyer to the seller's lawyer, raised after the buyer's lawyer has searched title to the property. Title searches involve reviewing the property's registered history at the provincial land registry — encumbrances, charges, instruments, easements, and anything else attached to the property on record.

When the buyer's lawyer finds something in that record that requires explanation, a release, or a correction, they raise it as a requisition. The seller's lawyer must then respond within the time frame set out in the agreement of purchase and sale.

Think of a requisition as the buyer's lawyer saying: before my client takes ownership of this property, these items need to be addressed or explained.

The Requisition Date: Why the Deadline Matters

Ontario agreements of purchase and sale include a requisition date — typically set several business days before closing to allow time to resolve issues before the closing funds flow. It is a hard contractual deadline.

After the requisition date passes, a buyer's ability to raise new title requisitions is generally limited (with exceptions for matters that only become apparent later, such as executions against the seller personally). Buyers who fail to raise a known title issue before the requisition date may lose the right to object to it at closing.

For sellers, the requisition date creates a corresponding obligation: you must respond to requisitions raised on time and must clear those that your agreement requires you to clear — also before closing. If you cannot resolve a legitimate requisition, the buyer may have grounds to refuse to close.

Common Requisitions Ontario Sellers Receive

No two title searches produce identical results, but the following categories come up regularly.

Existing mortgages and charges

This is the most routine requisition. Your existing mortgage appears on title and must be discharged at closing. The seller's lawyer coordinates the discharge — obtaining a discharge statement from the lender, paying out the mortgage from closing proceeds, and registering the discharge after closing. Buyers want confirmation this will happen. It almost always does.

Executions (judgments) against the seller

A search against the seller's name may reveal a judgment registered by a creditor. Even if the judgment is old or relates to a different person with a similar name, it must be addressed. The seller's lawyer will typically obtain a statutory declaration confirming the execution does not relate to the selling party, or arrange to pay it out. These are usually resolved without difficulty.

Work orders and outstanding building permits

If a municipality has issued a work order against the property — requiring that certain work be done to bring the property into compliance — it will show up in the municipal search. Similarly, a permit pulled for a renovation years ago that was never formally closed by a final inspection remains open on the building record.

These are more complex to resolve. The seller may need to complete the required work, obtain the inspection and permit closure, or in some cases negotiate with the buyer to deal with it through a price holdback. Not all municipalities process these quickly; starting early matters.

Easements and rights-of-way

An easement grants someone else a right to use part of your land — utility easements and road widenings are common. Most easements are known and expected. A buyer's lawyer may requisition on an easement simply to receive confirmation that the seller is aware of it and the buyer understands their obligations. Others may require explanation if they are unusual in scope or location.

Zoning and building by-law non-compliance

A search may reveal that the current use or structure does not comply with municipal zoning — a converted basement apartment that was never permitted, a garage setback that violates the by-law, or an addition built without approval. These are among the more difficult requisitions to clear quickly. Sellers may need to obtain a municipal variance, regularize the use, or provide an undertaking to the buyer.

Encroachments

An encroachment exists when a structure on your property (a fence, garage, deck, addition) extends onto a neighbouring property, or vice versa. These come up in survey comparisons. Resolution may require a survey, a boundary line agreement with the neighbour, or title insurance to step over the issue.

Which Requisitions Must You Clear?

Not every requisition carries the same weight. The general rule is:

You must clear: matters that constitute a defect in your ability to convey good title — your mortgage, executions against you personally, valid work orders, open permits, and any encumbrance you agreed to remove under the contract.

You may not be required to clear: matters that were disclosed before the agreement was signed, that fall outside the scope of what the agreement contemplates, or that were raised after the requisition date. What you agreed to deliver is defined by the contract language.

Your lawyer's job is to assess each requisition, respond firmly where the buyer's lawyer is overreaching, and efficiently resolve the ones that are legitimate. A well-drafted response letter protects your position on contested items while confirming your plan to address valid ones.

The Role of Title Insurance

Title insurance, purchased by buyers (and sometimes lenders), has become a significant factor in how requisitions are handled. In many cases, a buyer's title insurer will agree to step over a minor title defect rather than requiring the seller to resolve it before closing. This is common for:

• Open permits for older work that pose no practical risk
• Minor encroachments that are clearly not disputed
• Easements whose impact on the property is minimal

Title insurance does not solve every problem — serious zoning violations, active work orders, and unresolved fraud issues typically cannot be stepped over. But it has reduced the number of requisitions that must be fully cleared prior to closing, which helps transactions close on time.

What Happens If You Cannot Clear a Requisition?

If a valid requisition cannot be cleared before closing, the buyer may:

• Extend the closing date by mutual agreement to allow more time
• Negotiate a price holdback — funds held in trust until the issue is resolved post-closing
• In serious cases, refuse to close and seek remedies for breach of contract

The worst outcome — a failed closing — is expensive for everyone. Sellers face carrying costs, potential legal liability, and the need to relist. Catching title issues early through a pre-listing title search, or by having your lawyer flag likely problems before you accept an offer, is far better than discovering them at the requisition stage.

Frequently asked questions