Form 1

If you are selling a house, a Form 1 is a disclosure document you need to provide to your potential purchasers. Providing a Form 1 is a statutory requirement under the Land and Business (Sale and Conveyancing) Act 1994 (SA). The Form 1 is designed to provide potential purchasers with information pertinent to your property. Form 1’s must provide to a potential purchaser:

• information regarding their cooling off rights; and
• any information the vendors possess regarding the property that they know might negatively affect the value of the property including, but not limited to:
  • other rights affecting the land (mortgages, leases, easements and encumbrances;
  • development plans that affect the property; and
  • rates and fees payable on the property;

The aim of the Form 1 is to make the property transaction as transparent as possible. Form 1’s for rural properties might include further information such as water entitlements, land use restrictions and native title claims over the property.

Vendors may engage agents, conveyances or solicitors to prepare the Form 1. That being said, the onus is on the vendor to provide accurate and pertinent information to whoever prepares the Form 1. If an accurate Form 1 is not provided to a potential purchaser, the purchaser might be able to rescind the contract at any time prior to the date of settlement.

The Form 1 must be signed by the vendor and made available to the purchaser. Depending on the type of sale, the requirements for when it must be made available to a purchaser vary. If the sale of the property is to occur by auction, the Form 1 must be available for viewing at the real estate agent or the auctioneer’s office at least 3 business days prior to the date of the auction. The Form 1 must also be available on the day of the auction for at least 30 minutes before the start of the auction.

Where the sale of the property is not by auction, the Form 1 must be provided to a potential purchaser at least 10 clear days prior to settlement date. It may be an offence if the Form 1 is either not provided as per the time requirements or if it contains inaccuracies. In some circumstances, purchasers may, subject to obtaining legal advice, waive their rights to receiving a Form 1. If you are selling your house and need a Form 1 prepared, or if you are looking at purchasing a house and would like a Form 1 explained to you, email us at info@straitslawyers.com or call at 08 8410 9069 to arrange an appointment.

Please note that this article does not constitute legal advice and Straits Lawyers will not be legally responsible for any actions you take based on this article.