Requisitions on title in NSW is a key concept under property law. In basic terms, requisitions on title in NSW mean the questions that are related to the sale of property, which are usually drawn up by solicitors.
A requisition is a formal or official request for something that is required. Specifically, requisitions on title in NSW fall under conveyancing matters, wherein conveyancing is defined as the transfer of legal title of property from one party to another party.
In conveyancing matters, there are purchasers and vendors involved, that is: –
- The buyer of the property is regarded as the ‘purchaser’; and
- The seller of the property is regarded as the ‘vendor.’
During this process of conveyancing, the legal representative of the purchaser will make certain enquiries about the property and about the title of the property. These enquiries are directed to the vendor of the property. The enquiries can be either general or specific in nature. Requisitions is the formal name given to these enquiries.
Requisitions On Title In NSW: Detailed Explanation
What kind of enquiries are included in requisitions on title in NSW?
Generally speaking, requisitions can include either: –
- the questions that are not directly included in the contract
- matters that are not found during the inspection of property
For example, a question regarding any ongoing disputes with neighbours regarding a shared fence; or a question on whether any building works have been carried out without consent; or if there’s any matter that would justify the making of a demolition order.
Furthermore, requisitions on title can vary depending upon the type of property as well. For instance, a free standing home or a unit, or a villa, etc. can all include different types of requisitions.
What are the types of requisitions on title in NSW?
- Requisitions on title.
These are concerned with the dealings that may or may not be included on the title deed. These requisitions involve dealings like easements, covenants, caveats, or mortgages that require removal on or before the completion of contract.
For your understanding, easement is a right of way that allows a person to use another person’s property for a specific purpose. For instance, a shared driveway is a type of easement. Secondly, covenants refer to obligations that are imposed on the owner of the land.
Thirdly, mortgages refer to the loans that are taken to either purchase, or maintain the house, land or any other type of property. Lastly, caveats are used to protect interests in a particular land, and it acts as a freeze so as to prevent others from registering dealings with the property in question.
2. Requisitions as to conveyance.
These include enquiries on how the property is to be passed on to the purchaser. In discussing this, a common question that is raised is how all important documents are to be handed over to the purchaser at settlement.
This will require detailed responses like the time and place for settlement and document handover.
3. Requisitions as to property.
These may include enquiries about survey reports, any building works that have been completed, or information about existing tenancies, wherever applicable.
4. Requisitions in the nature of general enquiries.
This type includes routine questions, and/or requests that are made regularly. Mainly, this includes enquiries about how matters are to be dealt with at completion.
For instance, the existence of any statutory notices will come under this requisition. Secondly, any adjustments that need to be made will be pointed out as part of requisitions in the nature of general enquiries.
5. Requisitions in the nature of reminders.
These requisitions are reminders to comply with the terms of the contract. For example, if there are any mortgages on the property, this type of requisition will remind the vendor to discharge those mortgages.
Similarly, this type of enquiry can be made to remind the vendor to provide vacant possession of the property at the time of completion of settlement.
Importance Of Requisitions On Title In NSW
Primarily, its purpose is to allow the purchaser to obtain information that might not have been disclosed in the contract.
On the other hand, sometimes the purchaser might discover something during the inspection of the property. By making a formal enquiry the purchaser can obtain any information that they need from the vendor.
Generally speaking, the vendor has a duty of disclosure, requiring them to disclose all information. However, in many cases some information might be left out in the disclosure. In these cases requisitions on title become essential.
Consequences Of Dishonest Or Inaccurate Responses By Vendor
A vendor can be sued for damages if the purchaser has relied on false information provided by the vendor, and has consequently suffered losses.
According to Section 183 of the Conveyancing Act 1919 (NSW) if a vendor deliberately conceals information, or provides false information to make the purchaser settle, the vendor may face criminal and civil charges.
On the other hand, if the vendor provides honest but incorrect information, they may be liable for negligent misstatement. Similarly, incorrect statements might be found to be a breach of consumer protection legislation like the Australian Consumer Law.
In cases where the vendor is unable to, or unwilling to disclose information that is requested by the purchaser, the vendor may cancel the contract, if: –
- a proper requisition has been made by the purchaser
- the vendor is acting on reasonable grounds
According to Section 56 of the Conveyancing Act 1919 (NSW) If the vendor cancels the contract, he/she is also required to give the purchaser a reasonable amount of time to waive the requisition.
JB Solicitors’ Advice On Conveyancing Matters
Now that you have an idea about requisitions on title in NSW, it is important for you to understand why legal assistance is required in these matters.
Property law is complicated, and when making rash decisions, or acting without proper guidance, you can suffer great losses. Legal guidance in conveyancing matters not only saves money, but also your time.
The conveyancing experts at JB Solicitors know the law of the land, and have a wealth of experience in dealing with these matters. It is advisable that purchasers make requisitions with the help of solicitors.
Contact JB Solicitors today to gain advice on requisitions on titles in NSW, and other property and conveyancing matters.