Requisitions
Formal written questions sent by the buyer's lawyer to the seller's lawyer about the property title, the agreement, or other matters before settlement.
What is a Requisitions?
Requisitions are part of the standard conveyancing process in New Zealand. After a sale and purchase agreement is signed, the buyer's lawyer reviews the title and other property information and sends formal questions (requisitions) to the seller's lawyer about any issues or concerns.
Common requisitions include questions about registered interests on the title, outstanding council rates or water charges, body corporate matters for unit titles, compliance with building consents, and any discrepancies between the title and the property as inspected.
The ADLS/REINZ standard sale and purchase agreement sets out specific timeframes for requisitions. The buyer's lawyer typically has a set number of working days after the agreement date to raise requisitions, and the seller's lawyer must respond within a specified period. If an issue raised in requisitions can't be resolved, the buyer may have the right to cancel the agreement.
Why It Matters for Due Diligence
Requisitions are a vital part of your lawyer's investigation into the property. They allow your lawyer to formally raise concerns and require the seller to provide answers or resolve issues before you're committed.
Make sure your lawyer is actively raising requisitions on your behalf. Provide them with any questions or concerns you have from your own inspections, and ask them to keep you informed about the seller's responses.
How to Check
Your lawyer handles requisitions as part of the standard conveyancing process. You don't need to prepare them yourself, but you should tell your lawyer about anything you've noticed during inspections or research that concerns you. Your lawyer will raise appropriate questions and report back on the seller's responses.
Frequently Asked Questions
What happens if the seller can't answer a requisition satisfactorily?
If a requisition reveals a significant issue that the seller can't resolve, your lawyer will advise you on your options. Depending on the nature of the issue and the contract terms, you may be able to negotiate a price reduction, require the seller to fix the issue, or in some cases, cancel the agreement.
How long does the requisition process take?
The ADLS/REINZ agreement sets specific timeframes — typically 5-10 working days for the buyer's lawyer to raise requisitions and a similar period for the seller's lawyer to respond. Your lawyer will manage these deadlines.
Related Terms
Sale and Purchase Agreement
GlossaryThe legally binding contract between buyer and seller that sets out all the terms and conditions for a property transaction in New Zealand.
Settlement
GlossaryThe day ownership of a property officially transfers from the seller to the buyer and the purchase price is paid in full.
Registered Interest
GlossaryAny right or claim recorded on the property's certificate of title, such as a mortgage, easement, covenant, or caveat.
LIM Report
GlossaryA Land Information Memorandum — an official council report summarising everything the council knows about a property.
Unconditional
GlossaryThe status of a sale and purchase agreement once all conditions have been satisfied or waived, making both parties legally committed to the transaction.
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