What is a letter of requisitions?

When the buyer’s lawyer has completed their title search, they compose a letter to the seller’s lawyer listing all issues identified on title, as well as any off-title issues or unfulfilled promises they expect the seller’s lawyer to deal with on or before closing. This is called the letter of requisitions, oftentimes shortened to “req letter,” pronounced like “wreck.”

The seller’s lawyer carefully reviews the requisitions and considers whether they are valid, or whether they are issues the buyer’s lawyer needs to satisfy themselves, in accordance with the terms of the Agreement of Purchase and Sale. Certain imperfections of title are accepted by the buyer in advance, as stated in the fine print of the standard Agreement of Purchase and Sale.

The Agreement of Purchase and Sale specifies a title search date, which is the deadline for sending the req letter. Certain requisitions - those that go to the “root of title” - can be submitted after the title search date and must be dealt with by the seller and their lawyer, but any other requisitions submitted after the deadline can be ignored by the seller’s lawyer.

If a seller or their lawyer fails to resolve a valid requisition before the closing date, and does not undertake to resolve the issue after closing, the buyer may be able to exit the transaction.