What is a Requisition on Title?

A requisition is a formal request for something that is required. Requisitions on title are questions related to the sale of property.

During conveyancing, the purchaser’s legal representative makes certain enquiries to the vendor about the property 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.

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

What are the types of requisitions on title?

Requisitions on title

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

Requisitions as to property

These include enquiries about building works, survey reports, or existing tenancies.

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.

Requisitions in the nature of reminders.

These are reminders to comply with the terms of the contract.

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.

The Conveyancing Act 1919 provides that if a vendor deliberately conceals information, or provides false information to make the purchaser settle, the vendor may face criminal and civil charges.

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.

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