Unpacking Requisitions on Title: Your Essential Guide to Western Australia Property Contracts

1. Plain English Definition

Requisitions on Title means the formal questions a buyer asks the seller about the property's legal title and condition after signing a contract, but before settlement. It allows the buyer to clarify any discrepancies or issues identified during their due diligence, ensuring they receive a clear and unencumbered title when purchasing a Western Australia property.

2. The Danger Zone: Buyer's Risk

• Strict Time Limits: Under the REIWA Contract, buyers typically have a very short timeframe (often 10 business days from the contract date) to raise requisitions on title. Missing this deadline means you forfeit your right to question the title, accepting it "as is".
• Undisclosed Defects: If the seller fails to disclose a significant defect in the title, and the buyer misses the requisition deadline, the buyer may be stuck with an expensive problem (e.g., an unregistered easement or an outstanding council order) that could cost thousands to rectify.
• Forfeited Rights: Failure to properly raise a requisition can mean you lose the right to object to a title issue later, even if it significantly impacts the property's value or your ability to use it as intended. This is a critical buyer's risk in any Western Australia property contract.
• Settlement Delays: If requisitions are raised late or poorly, they can lead to disputes and delays in settlement, potentially incurring penalty interest for the buyer if they are at fault under the REIWA Contract.
• Legal Costs: If a buyer needs to pursue a remedy for a title issue that should have been raised via requisition, they may face significant legal costs in Western Australia's courts, especially if the issue was discoverable within the requisition period.
• Unclear Boundaries: A common issue for first-home buyers is unclear or disputed boundary lines. If not questioned through requisitions, a buyer might inherit a boundary dispute with a neighbour, potentially requiring costly surveys or legal action.

4. Real-Life Western Australia Scenario

Mei Lin, an investor from Canning Vale, purchased an older home in Perth, planning to renovate. Her solicitor noticed a discrepancy in the survey plan provided, indicating a small portion of the backyard might be encroaching on council land. Mei Lin's solicitor raised a requisition on title, demanding clarification and a resolution from the seller within the stipulated REIWA Contract timeframe. The seller initially resisted, but faced with potential contract termination, they arranged for a new survey and negotiated a licence agreement with the council, preventing Mei Lin from inheriting a significant boundary dispute that could have cost her thousands in legal fees and reduced the property's value. The lesson: Diligent requisitions protect your investment.