Unpacking Requisitions on Title in Your Victoria Property Contract: A Buyer's Guide

1. Plain English Definition

Requisitions on Title means the formal questions a buyer's solicitor asks the seller's solicitor about the property's title and compliance with local laws, typically after the contract is signed but before settlement. These questions clarify any potential issues or defects that aren't immediately obvious from the Section 32 statement or the contract itself, ensuring the buyer receives clear title to the Victoria property.

2. The Danger Zone: Buyer's Risk

• Missed Defects: Failing to raise timely and appropriate requisitions could mean you inherit undisclosed title defects, easements, or building permit issues, potentially costing thousands to rectify after settlement in a Victoria property contract.
• Time Limits: The Section 32 / REIV contract often stipulates a strict timeframe (e.g., 14 days from the contract date) for raising requisitions. Missing this deadline means you generally waive your right to ask questions or object, accepting the title "as is," significantly increasing buyer's risk.
• Unclear Boundaries: Without proper requisitions, you might not discover discrepancies in property boundaries or encroachment issues, leading to future disputes with neighbours and unexpected legal fees in Victoria.
• Unauthorised Works: Requisitions can uncover if previous owners carried out renovations or extensions without council approval. If missed, you could be responsible for costly retrospective approvals or even demolition orders from the local council.
• Outstanding Notices: You risk taking on a property with unaddressed council notices or orders (e.g., for fire safety or building compliance) if your solicitor doesn't raise specific requisitions, incurring unexpected expenses post-settlement.
• Financial Penalties: If a requisition reveals a serious defect the seller cannot or will not fix, and you are forced to terminate the contract, you might still incur legal costs or lose your deposit if not handled correctly under Victoria law.

4. Real-Life Victoria Scenario

Mei Ling, an investor from Box Hill, purchased an older apartment in Richmond using a Section 32 / REIV contract. Her solicitor, due to an oversight, missed the 14-day window for raising requisitions on title. After settlement, Mei Ling discovered a significant encroachment from the neighbouring property's balcony onto her air space, which could have been identified and addressed pre-settlement. Rectifying this issue required costly negotiations and legal action, significantly eroding her investment returns. The lesson: Timely and thorough requisitions are crucial for protecting your investment in a Victoria property contract.