Everything You Need To Know About The Form 1 Document When Buying/Selling A Property

Buying or selling a property can be a daunting task, especially if you're unfamiliar with the various documents and legal requirements involved. One of the most important documents to understand is the Form 1, also known as the Vendor's Statement. In this article, we'll cover everything you need to know about the Form 1 when buying or selling a property in Australia.

What is the Form 1 Document?

The Form 1 is a legal document that is required to be provided by the vendor (seller) of a property to the purchaser (buyer) before the sale of the property can be finalized. The purpose of the Form 1 is to disclose information about the property, including any potential risks or issues that the buyer should be aware of.

What information does the Form 1 contain?

The Form 1 contains a range of important information about the property, including:

1. Title information: This includes details of the property's title, such as the volume and folio number, and any encumbrances or easements that may affect the property.
2. Zoning and planning information: This section outlines the zoning of the property and any planning restrictions or overlays that apply.
3. Building and compliance information: This section provides details of any building approvals, permits or certificates issued in relation to the property, as well as any outstanding orders or notices issued by local councils or government authorities.
4. Services information: This section outlines the availability and location of essential services such as water, gas, electricity, and sewage.
5. Other information: This may include details of any disputes or legal proceedings involving the property, any potential contamination or environmental risks, and any other relevant information that the vendor is aware of.

Why is the Form 1 Document Important?

The Form 1 is an important document because it provides the buyer with important information about the property that they may not be aware of otherwise. By law, the vendor must provide a Form 1 to the buyer before the sale of the property can be completed. If the vendor fails to provide a Form 1 or provides incorrect or incomplete information, the buyer may have grounds to cancel the sale.

What Should Buyers Look For in the Form 1 Document?

As a buyer, it's important to carefully review the Form 1 to ensure that you're aware of any potential risks or issues with the property. Some things to look out for include:

1. Outstanding orders or notices: Check if there are any outstanding orders or notices issued by local councils or government authorities relating to the property, such as orders to repair or demolish a building.
2. Building approvals and permits: Check if there are any outstanding building approvals or permits, or if any building work has been done without the appropriate approvals.
3. Environmental risks: Look out for any information about potential contamination or environmental risks associated with the property, such as soil contamination or asbestos.
4. Services: Check that essential services such as water, gas, and electricity are available and connected to the property.

What Should Sellers Include in the Form 1 Document?

As a vendor, it's important to ensure that the Form 1 is accurate and up-to-date. This includes providing all of the required information and ensuring that it's correct. If there have been any changes to the property since the Form 1 was prepared, such as building work or new orders or notices issued, these should be updated in the Form 1 before it's provided to the buyer.

In summary, the Form 1 is an important document that buyers and sellers need to be aware of when buying or selling a property in Australia. As a buyer, it's important to carefully review the Form 1 to ensure that you're aware of any potential risks or issues with the property. If you need help, contact Blackwood & Belair Conveyancing today!