Selecting the Title Search Date

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The standard APS has a clause named "Title Search".

That's Clause #8 in Form 100 and Clause #10 in Form 101.

It requires the drafter of the Offer to select a "Requisition Date".

The Requisition Date is the last date for the buyer's lawyer to perform a title search and submit their "Requisitions" to the seller's lawyer.

However, did you know there is a Second date that matters?

The Deadline to Object to Title.

And, what is this?

If there are issues resulting from the requisitions that cannot be rectified - a buyer has until the Deadline to Object to do so in writing, voiding the deal.

If you read the clause, this deadline to object is either the EARLIER of: (1) 30 days after the Requisition Date, or condition fulfillment date (whichever is later) and (2) 5 days prior to Closing.

I know, a little confusing.

Now, despite this being an area that lawyer's handle - it's up to you, the Realtor, to select the Title Search Date when drafting the APS.

And you have to take this duty seriously.

If the title search date is too soon - It can be problematic for the buyer. And if it ends too late - That can cause issues for the seller.

So here's my recommendation on selecting a date:

Allow enough time for identification and resolution.

In other words, at least 14 days before closing.

Having enough time between the title search and the closing date has benefits for both parties:

• Issue Identification: It allows enough time to investigate title and identify potential issues.
• Rectification: If issues are found, the seller has adequate time to address and rectify them.
• Smooth Transaction: Adequate time helps prevent last-minute complications and ensures a smoother, more predictable closing.
• Cost Efficiency: Resolving issues with proper time prevents rushed decisions and potentially high costs associated with delays or litigation.

This 14 day window provides enough time for the parties to address title issues while still being practical for normal closing dates.

The other advice, that I will continue to repeat for my entire career:

Get a lawyer involved as early as possible.

And if the lawyer tells you it's too early for them to be involved, find a better one.