WHAT IS A FORM 1
A Form 1 is a formal statutory disclosure statement which provides a purchaser with certain details about a property. The Form 1 must be served by the Vendor (seller) on the purchaser at least 10 days prior to settlement date. The most common way for a Form 1 to be served in by email, however other methods of service include registered post or serving the purchaser in person. If you are buying a property at Auction, the Form 1 must be on display at the Real Estate Agents office at least 3 days prior to Auction day.
THE COOLING OFF PERIOD
Once you have received the Form 1 it is deemed served and your cooling off period will commence provided the Contract of Sale is executed by all parties (Vendor and Purchaser). You have two clear business days to cool off once receiving the Form 1, so if the Form 1 was received on a Thursday you would have until midnight Monday to cool off provided neither of the business days were public holidays. Your cooling off period is a good time to undertake a building and pest inspection if it was not a special condition of the Contract or negotiate any changes you wish to make to the Contract.
It is important to have your Conveyancer review the Form 1 during the cooling off period so that they can advise of any implications.
Within the cooling off period the purchaser may legally change their mind and cancel the Contract, however the Vendor is bound upon entering into a Contract with the Purchaser and they do not receive any cooling off rights. If the Purchaser decides to withdraw from a Contract they must do so in writing to the Vendor or their Agent as outlined in the Form 1.
Once your cooling off has expired, and provided there are no other conditions of the Contract, the purchaser is bound by the Contract. Usually, your deposit is due to be paid to the real estate agents trust account once the cooling off has ended unless you have agreed otherwise.
WHEN DON’T I RECEIVE COOLING OFF RIGHTS?
If you have purchased the property at Auction, there will be no cooling off period. Therefore it is important that you have your Conveyancer look over the Form 1 prior to Auction day. Other scenarios when you will not receive a cooling off period are if you are purchasing non-residential (commercial) property and the entity you are purchasing in is a company or body corporate. You may also choose to waive your cooling off rights in some circumstances with a certificate from a solicitor. All exemptions from cooling off can be found in the Land and Business (Sale and Conveyancing) Act 1994.
WHATS IN THE FORM 1?
The Form 1 consists of the Property Interest Report (PIR) where numerous government departments respond and provide details relating to the property being sold. These government responses may include Environmental Protection, Department of Planning Transport and Infrastructure and Development Assessment Commission. The Form 1 also includes the Council search from the local council authority and provides information about zoning and building approvals. If the property is part of a Strata or Community Corporation, then the minutes from the latest Annual General Meeting (AGM), special levy and insurance information, by-laws and any other applicable details are required to be disclosed. Financial information relating to Council Rates, Emergency Services Levy, Land Tax, SA Water and Strata/Community Corporation (if applicable) are also included in the Form 1.
Contact us for a confidential discussion.
Phone: 08 7071 1605
Shop 5, 146-148 Marion Road
West Richmond SA 5033
www.sawideconveyancing.com.au
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