In Ontario, what is the significance of the 'requisition date' in an Agreement of Purchase and Sale?
Correct Answer
B) The last day for the buyer to object to title defects or search results
The requisition date in Ontario is the deadline by which the buyer must raise any objections to title defects, survey issues, or other search results. After this date, the buyer is generally deemed to accept the title as it stands, except for certain statutory exceptions. This protects sellers from last-minute title objections close to closing.
Why This Is the Correct Answer
Option B is correct because the requisition date specifically refers to the deadline established in Ontario Agreements of Purchase and Sale by which buyers must raise any objections to title defects, survey issues, or search results. This is codified in standard OREA forms and supported by case law. After the requisition date passes, buyers are deemed to accept the title as presented, except for certain statutory exceptions like executions or work orders that may arise after the search date. This protects sellers from indefinite exposure to title objections.
Why the Other Options Are Wrong
Option A: The deadline for the buyer to complete their home inspection
Home inspection deadlines are separate from the requisition date and are typically governed by specific inspection clauses or conditions in the agreement. The requisition date deals specifically with title and legal matters, not physical property conditions discovered through inspections.
Option C: The date when the seller must provide all property disclosure statements
Property disclosure statement deadlines are governed by separate provisions and timing requirements under TRESA and are not related to the requisition date. Disclosure obligations are typically fulfilled earlier in the transaction process, often before or at the time of offer acceptance.
Option D: The deadline for the seller to complete any required property repairs
Repair completion deadlines are established through separate clauses or conditions in the agreement and are not connected to the requisition date. The requisition date focuses on title and legal search matters, not physical property repairs or improvements.
Deep Analysis of This Contracts & Agreements Question
The requisition date is a critical deadline in Ontario real estate transactions that protects both buyers and sellers by establishing a clear timeline for title objections. This concept stems from the principle that buyers must conduct their due diligence within reasonable timeframes and cannot delay transactions indefinitely with title concerns. The requisition date typically falls 6-10 days before closing, giving buyers sufficient time to review title searches, surveys, and other documentation while providing sellers certainty about potential objections. After this date passes, buyers are generally bound to accept the title 'as is' except for specific statutory exceptions like executions or work orders. This mechanism prevents last-minute surprises that could derail closings and provides transaction certainty. Understanding this concept is essential because it affects risk allocation between parties and influences how real estate professionals advise clients about timing their due diligence activities.
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