Print Posted 10/10/2016 in Real Estate

I’ve received a really long document from the Agent called a Form 1 – WHAT IS IT??

I’ve received a really long document from the Agent called a Form 1 – WHAT IS IT?? The Form 1 document is what usually comes after a Contract has been signed by all parties. Sometimes the Agent may give it to you with the Contract, but normally they need to wait for the government searches to come in before they can complete it and hence why it is done separately. Again it is very important to have your Conveyancer peruse this document to ensure that everything looks accurate and that there is nothing out of the ordinary.  

A Form 1 document can also be known as ‘the cooling off paperwork’. It can be anywhere between 40 and 100 pages long and is a disclosure from the Vendor of any information that you should be aware of when buying. Some examples may include information on easements running through the property, asbestos, encumbrances, council information such as zoning and development approvals. It is also important to ensure that the information in the Form 1 (such as the property address, names of the parties involved etc) match with the Contract.  

The information is gathered from government searches and also from the Vendor and must be complete and accurate for legal reasons. If vital information is not included or correctly disclosed, you may have the right to terminate the Contract right up to the date of settlement if it is shown that the Form 1 is defective or misleading.  

Once this document has been received by you, you begin your 2 clear business day cooling off period and at the end of this the deposit must be paid. However, if this document is received before the Contract, then your cooling off period will commence on the date the Contract is signed by all parties. If the property was purchased at an auction, by a company, by assignment or by an option to purchase, then there is no cooling off period.  

During the cooling off period is when the pest and building inspection should be completed, hence why it was mentioned in our last post that as soon as the Contract has been signed by everyone to start making these arrangements, as unfortunately 2 business days isn’t a lot of time to make an inspection time, receive the report and check the findings.  

At the end of your cooling off period you are legally bound to complete settlement as per the terms and conditions of the Contract.  

It is always a great idea to forward this document to your Conveyancer so that they can have a look over it before your cooling off period has expired. They can also help explain some of the information and point you in the right direction if further questions need answering!  

For any questions you may have on this, please feel free to contact us.

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