Does the requisition date (clause 8) in the Agreement of Purchase and Sale throw you for a loop? It did one student who requested a simple explanation for that clause on the online discussion forum (in the Real Estate Transaction-General thread).
Here’s the scoop:
Clause 8 has two parts – the requisition date (the date you fill in) and a second date that is based on the requisition date.
The buyer’s lawyer must search title, done at the Registry Office, by the requisition date you noted in the agreement.
The second date relates to non-title searches, which include actions such as contacting the municipality for outstanding work orders, deficiency notices, and ensuring that insurance can be placed on the principal structure. This date is based on the date of the requisition. Specifically, the second date is the earlier of (a) or (b) noted below:
(a) 30 days from whichever date is later (the requisition date or the date when conditions were fulfilled/waived) – OR –
(b) five days before closing
For example, the offer is conditional until May 30. The closing date is July 15 and the requisition date inserted is June 30. Remember, it’s whichever date is earlier between (a) and (b).
If it’s (a) 30 days from whichever date is later – the second date would be July 30 (30 days from June 30 is July 30).
If it’s (b) five days before closing – the second date would be July 10.
The earlier of the two dates is July 10. Therefore, the buyer’s lawyer has until July 10 to complete the non-title searches. The (a) date is past the closing date of July 15; this is why it is the earlier of the two dates.
What’s on the discussion forums?
As at May 19, 2015, the discussion forums had 27,413 users who contributed to 69,274 threads and 88,112 posts. New threads and posts are added daily.
If you have a course content question or would like to join a discussion, visit the online forums (accessed through My Portfolio). The forums are moderated by curriculum staff so you can be certain that what answer you seek will be correct.
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