What is a Form 1 and why you need one?

In South Australia, Form 1 refers to a legal document that contains important information regarding the property being sold, such as its boundaries, encumbrances, restrictions and any zoning regulations that may apply. It also includes details about the purchase price, deposit amount, and settlement date.

The Vendor (seller) must provide a completed and signed Form 1 to the potential buyer at least 10 business days prior to the date of settlement. The Form 1 is usually prepared by the sellers Conveyancer or Agent and may influence the buyer’s decision to proceed with purchase. This is because the Form 1 does not provide information related to the conditions of the property, accuracy of title measurements, and whether the building is compliant with regulations.

Upon receiving the Form 1, the potential buyer is allowed a cooling off period of 2 full business days where they may retract their offer without any penalties. This gives the buyer time to practice their due diligence in reviewing the document, seeking legal advice and conduct any inspections.

It is important to note that no cooling off period applies to properties bought at auction. Instead, the Form 1 should be available 3 business days prior to the date of auction, at the agent’s office and on the 30 minutes prior to auction, at the property.

It is crucial the Form 1 is free of errors or insufficient information, as penalties can be applied if found to be incorrect. Therefore, it is vital to choose a reliable and knowledgeable Conveyance or Agent.