Mid Mountains Legal Blog

Requisitions on Title NSW

Anthony Steel

What is a Requisition on Title?

A requisition is a formal request for something that is required. Requisitions on title are usually drawn up by solicitors and are questions related to the sale of property.

Conveyancing is the transfer of legal title of property from one party to another party where the buyer is known as the ‘purchaser’ and the seller is known as the ‘vendor.’

During conveyancing, the purchaser’s legal representative makes certain enquiries to the vendor about the property (called ‘requisitions’) which can be either general or specific.

What kind of enquiries are in requisitions on title?

Generally, requisitions can include either: –

  1. the questions that are not directly included in the contract; or
  2. matters that are not found during the inspection of property.

Examples of requisitions include:

  1. a question on whether any building works have been carried out without consent; or
  2. if there’s any matter that would justify the making of a demolition order; or
  3. a question regarding any ongoing disputes with neighbours regarding a shared fence.

Requisitions on title can vary depending upon the type of property.

What are the types of requisitions on title?

  • Requisitions on title

These are concerned with the dealings that may or may not be included on the title deed. They involve dealings like mortgages, easements, caveats or covenants that require removal on or before the completion of contract.

An easement is a right of way that allows one person to use another’s property for a specific purpose (e.g. a shared driveway). Covenants are obligations imposed on the land owner. Mortgages are loans taken out to purchase or maintain a property. Caveats protect interests in a particular property, preventing others from registering dealings on it.

  • Requisitions as to property.

These may include enquiries about any building completed works, survey reports, or existing tenancies, wherever applicable.

  • Requisitions in the nature of general enquiries.

This type includes routine questions, and/or requests that are made regularly. It includes enquiries about how matters are to be dealt with at completion. For example, any adjustments that need to be made, and the existence of any statutory notices.

  • Requisitions in the nature of reminders.

These are reminders to comply with the terms of the contract. For example, reminding the vendor to discharge any mortgages on the property or to provide vacant possession of the property at settlement.

Importance of requisitions on title

The primary purpose of requisitions on title is to allow the purchaser to obtain information which may not have been disclosed in the contract.

Sometimes the purchaser might discover something whilst inspecting the property. By making a formal enquiry, the purchaser can obtain any information they need from the vendor.

Generally speaking, the vendor’s duty of disclosure requires them to disclose all information. If, however, some information is left out in the disclosure, requisitions on title become essential.

Consequences of dishonest or inaccurate response

A vendor can be sued for damages if the purchaser has relied on false information provided by the vendor, and has consequently suffered losses.

If a vendor deliberately conceals information, or provides false information to make the purchaser settle, the vendor may face criminal and civil charges: Section 183 of the Conveyancing Act 1919 (NSW).

Incorrect statements by the vendor may be found to be in breach of consumer protection legislation such as the Australian Consumer Law. A vendor providing honest but incorrect information may also be liable for negligent misstatement.

When the vendor is unable or unwilling to disclose information requested by the purchaser, the vendor may cancel the contract, if: –

  1. the purchaser has made a proper requisition; and
  2. the vendor is acting on reasonable grounds

If the vendor cancels the contract, he/she must give the purchaser a reasonable amount of time to waive the requisition: Section 56 of the Conveyancing Act 1919 (NSW).

What now?

Property law can be complicated. If you make rash decisions or act without proper guidance, you can suffer great losses. Legal guidance in conveyancing matters saves you money and time.

If you or someone you know need assistance and advice regarding conveyancing matters such as requisitions on title Contact Mid Mountains Legal today.

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