Non Title Search Period Calculation in Ontario
All non-title searches include the work orders, deficiency notices etc. and they all have the same time period associated with the offer. This clause is a little confusing when calculating the date the non-title searches must be completed by. Here’s how you calculate that date.
Let’s say the offer is accepted today, September 28, 202x. You have the offer conditional on financing until October 3, 202x. You have a closing date of November 30, 20x and in the Title Search Clause you insert November 10, 202x as the requisition date. The lawyer must complete the title search by November 10, 202x (look at what is registered on title – e.g., confirm who the owner is, liens/mortgages registered, easements, restrictive covenants etc.).
The non-title search time period is established by calculating which of the following dates (either #1 or #2) is the earliest:
1. In this section, it will be which of the following is later:
a) 30 days from the Requisition date (November 10) or
b) 30 days from when conditions are removed (let’s say October 3)
So for this section, the later date is November 10 – so 30 days from November 10 would be December 10, 202x
2. This section is 5 days before closing – Closing is November 30th, so this date would be November 25, 202x
Since you must use the earliest of the two, that would be November 25, 202x in order to do the non-title searches (Note that the other date of December 10, 202x is after the closing date – that’s why you take the earlier of the two).
Do the calculations, so that when you send it to the lawyer, you have informed the lawyer of the second date.
Also, don’t do an Amendment later which will shorten up on this time period.
Brian Madigan LL.B., Broker