Requisitioning The Closure Of Open Building Permits

Ontario courts have long wrestled with whether requisitioning the closure of an open building permit is a valid buyer requisition when made pursuant to a standard Ontario Real Estate Association (OREA) real estate form purchase agreement.

Requisitions can be made pursuant to the terms of the real estate purchase agreement, pursuant to the provisions of the Vendors and Purchasers Act (Ontario) (V&P Act)¹ or pursuant to common law.

In a standard OREA form of purchase agreement, provision is made for the buyer to make certain types of requisitions—valid requisitions that relate to title matters and valid requisitions in respect of specified work order/non-compliance matters. These contractual requisitions and those permitted by the V&P Act have to be made by the buyer by specific dates (which we commonly think of as a requisition date), failing which the buyer is deemed to have accepted the underlying deficiency. If such requisitions are made by the requisition