Hunting for property brings you into contact with a vast array of characters with different vested interests and motives.
And when you have decided on a property, often amid a heady mix of emotions and fear of losing it to other parties, you are presented with a document known as the Form 1 or the Vendor’s Statement.
It is at this moment that you need all your wit, wisdom and insight about you and, preferably, the sound counsel of a trusted conveyancer.
Form 1: It is a heavy duty document
The document we know as the Form 1 is actually a statement that is required under Section 7 of the Land and Business (Sale and Conveyancing) Act 1994.
It should contain a lot of information including details about:
- Who is buying and selling the property
- What cooling off rights you have as the buyer
- Details of any matters that might effect the property, such as encumbrances, mortgages, etc
It is this last part I am concentrating on today because incomplete details can lead to a lot of heartache down the track.
Terms you need to understand
If you are not regularly involved in the sale and transfer of property like a conveyancer, you might not capture the full meaning of some of the following terms that can appear in a Form 1:
- Restrictive Covenant. This relates to any conditions that stop you developing the property in certain ways, such as the height of the building, or even cutting down certain trees and many more.
- Easement. These can include agreements or rights of a neighbour to use a part of your property to access their own, this is not uncommon in many Adelaide suburbs.
- Leases and tenancy agreements. These documents relate directly to occupancy of the property and should be read thoroughly.
- Development. The Form 1 document should inform you of anything relating to the Development Act such as building approvals, land management agreements with the local council, etc.
- Strata and Community Titles. If you are buying a unit, even a self-managed one, the Form 1 should outline any fees, certificate of currency for insurance, etc.
These are just some of the things a conveyancer pays attention to on your behalf.
While vendors face numerous issues when serving you an incorrect or incomplete Form 1, it is our job to check on these for you so that you can focus on your plans and dreams for your new property.