Last Updated on May 4, 2022 by azamqasim
Form 1 is the formal document provided by the seller to the buyer when dealing with a property. It comes with all the cooling-off rights and all the essential details relating to the property. The form 1 conveyancer specializes in all the legal documents during buying and selling properties.
Form 1 is required by the law and can be one of the reasons for preparing it before the purchasing and selling activities.
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Why do you need it?
As cooling-off time can be obtained for 48-hour after the receipt of the document by the buyer, all the legal points can be considered carefully. Therefore, the entire contract and Form 1 can be studied and checked well to comply with the present legal system. If it violates any kind of law, the form is considered defective, and the purchase agreement can be stopped.
If the buyer decides in his mind that he will not buy the defective property, he may go through the legal documents and can exit the contract with the help of a Form 1 conveyancer. The buyer can only leave the contract when an accurate Form 1 is presented. For the new and accurate Form 1, the cooling period also starts at 48 hours.
As form 1 protects the purchaser, it protects the vendor as well. For example, if the buyer fails to disclose it with the vendor, the sale of the vendor also remains at risk until the day of settlement.
The disclosures included in Form 1 can be known for the defects like unusual easements, restrictions on the use of land, buildings that may contain asbestos, and details of any other parties interested in the land.
When does Form 1 need to be completed?
The timing of Form 1 depends on the type of sale. Whether the transaction will take place in an auction or within the open market.
If the property is being sold at an auction, the contract and form 1 documents need to be fully completed and available for showing at the real estate office at least three days before the auction.
When the property is being sold in the open market, only form 1 needs to be provided 10 working days before the day of settlement. However, the provision of Form 1 can affect if the cooling-off period has ended.
What happens if Form 1 is not being used?
Form 1 is mandatory while selling the house, and it is always advisable to leave the work to the professionals. The key conveyancing activities can be done by the lawyers chosen by the real estate agents. But you can also select them according to your preferences.
It is always recommended that the conveyancer you choose can prepare Form 1 for you. As the entire process involves legal formalities, it needs to be taken care of by the professionals. Now that you know about form 1, its uses, and the timing to use one, you can consult the conveyancer before handling any property transactions.