The Form 1, or Vendors Disclosure Statement, provides certain information relating to the property being sold and provides the cooling off rights. It is a formal statement that is served on the purchaser under Section 7 of the Land and Business (Sale and Conveyancing) Act 1994.
The Form 1 is generally prepared by the real estate agent but can also be prepared by your conveyancer if they have suitable insurance. It is important that the Form 1 is accurate and complies with current legislation to avoid putting the contract at risk.
The Form 1’s purpose is to disclose to the purchaser the particulars of the property that may affect their purchase. The purchaser should read this document carefully, so they understand all the particulars of the land. These include, but are not limited to:
- Cooling off rights
- Inquiries of the land, including mortgages, encumbrances, easements, lease and tenancy agreements
- Caveats and Liens
- Development Plans
- Emergency Services Levy
- Public and Environmental Health
- Water and Sewerage
It is recommended that vendors and purchasers contact a conveyancer before they sign a contract or in the cooling off period to ensure that they understand what both the Contract and Form 1 mean and how the disclosed information may affect them.
What is cooling off and when does it start?
Most purchasers have a statutory right to terminate a contract, but it must be exercised by giving written notice of the cooling off to the vendor within two clear business days of the service of the Form 1. The Form 1 is served on purchasers either in person, by fax or email.
In SA, settlement cannot occur within 10 days of the service of the Form 1 and not all purchaser have the right to cool off. If you have waived your right by getting independent legal advice, if you bid at auction and purchased later that day, or you are purchasing as a company and you are buying commercial property, you do not have a cooling off period.
If a purchaser chooses not to proceed and gives notice during the cooling off period it must be done correctly and in the manner that the Form 1 allows.
The cooling off period can be used to conduct a building or pest inspection to ensure that the purchaser is happy with their decision.
Strathalbyn Conveyancing highly recommend speaking with your conveyancer in the early stages of signing a contract and in your cooling off period to ensure that all of your rights and obligations are protected. has notified you and the Real Estate Agent that the settlement has been completed, you can then collect the keys from the Agent.