What is a Form 1?
The Form 1 is a very important document. It’s the primary source of disclosure of a wide range of matters that can affect the use, enjoyment and value of a property. It must be provided by all sellers and their agents. We strongly recommend that no one signs a contract to buy a property until the Form 1 has been provided and examined.
Who must prepare the Form 1?
The Form 1 must be prepared by the seller or their agent from information obtained from searches of government departments, council searches and from the seller’s knowledge of the property.
What is required when serving the Form 1?
The Form 1 must be accurate at the time it is given to a buyer and at the time of the signing of the contract by the buyer. It must be given to a buyer at least 10 days before settlement, but a buyer should really request it before signing any contract. The Form 1 also informs buyers of their cooling off rights. The Form 1 must be signed by the seller and by the real estate agent, if there is one.
What happens if the requirements are breached?
Offences can be committed by sellers and their agents for breaches of these requirements. Where a Form 1 is defective or not provided, remedies that may be available to the buyer include cooling off before settlement, cancellation of the transaction by a court and/or an award of damages (compensation for loss) by a court after settlement.