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Although we aim to avoid legal terminology, its use is sometimes unavoidable. When this occurs, we will always provide the clearest possible explanation of the term. One such is “Requisitions on Title”. What are requisitions on title in conveyancing?
What are requisitions on title in conveyancing?
In the final stages of the conveyancing process, requisitions on title play a vital role. These are precise, formal inquiries submitted by the buyer’s solicitor to the seller’s solicitor in the immediate lead-up to the completion of the property transaction. Differing from the more general enquiries posed earlier in the process, requisitions specifically aim to verify key information necessary to finalise the transaction, including:
- financial arrangements;
- completion logistics; and
- the property’s legal status.
The aim is to ensure that completion proceeds smoothly without any last-minute hiccups. Most often, requisitions on title are sent using a standard form (Form TA13), which covers crucial information such as bank details, any final financial adjustments, and the handover of keys.
When are requisitions raised during conveyancing?
Requisitions on title are usually raised in the later stages of the conveyancing process. The buyer’s solicitor submits them after reviewing the preliminary contract and title documents provided by the seller’s solicitor. Typically, this occurs after initial property searches and other enquiries are complete but before exchange of contracts. This timing allows the seller’s solicitor sufficient time to respond to any questions, ensuring that all crucial details are clarified and agreed upon, facilitating a smooth and efficient completion.
What are replies to requisitions on title?
Upon receipt of the requisitions on title from the buyer’s solicitor, the seller’s solicitor must provide clear and accurate responses. Each inquiry should be addressed comprehensively to eliminate any potential for misinterpretation or uncertainty. Any discrepancy or delay in providing replies can negatively impact the completion timeline or even put the entire transaction at risk.
What do replies to requisitions include?
A seller’s replies to requisitions cover a range of practical and legal matters requiring clarification before completion, including:
- Documentation: Details of the title deeds to be handed over to the buyer’s solicitor following completion.
- Bank Details: Confirmation of the seller’s bank details for the transfer of completion funds.
- Outstanding Mortgages and Charges: Assurance that all existing mortgages and charges secured on the property will be discharged before or at completion.
- Completion Arrangements: Where and when will the keys be handed over on completion?
- Vacant Possession: Confirmation that the property will be vacant on completion or whether it will be tenanted.
- Practical Matters: How and where will completion take place? How will the transfer of the property be managed?
What happens if requisitions on title are unresolved?
Failing to resolve requisitions on title can cause significant delays. The buyer will likely be unwilling to exchange contracts until all outstanding issues are addressed. Unresolved requisitions can sometimes result in the transaction falling through. With that in mind, both parties must deal with requisitions accurately and promptly to ensure a smooth path to completion.