At Eckermann Property Forms we have heard that there is some confusion around Form 1 preparers doing different tasks on behalf of Agents and Vendors. We thought we’d provide some clarification around what can and cannot be done on behalf of an Agent during the preparation and service of a Form 1.
- the Form 1 preparer can certify Form 1s on behalf of the Agent. The Agent just needs to authorise them to do so;
- the Form 1 preparer can make the prescribed inquiries (i.e. order searches and obtain the Vendor’s Questionnaire) on behalf of the Agent. The legislation just says the Agents must ensure the prescribed inquiries are made. It does not say the Agent must do the prescribed inquiries themselves. Note, if it is suggested the Form 1 preparer should not obtain the Vendor’s Questionnaire, then they supposedly shouldn’t be ordering the searches either. The Agent having an arrangement where the Form 1 preparer undertakes those inquiries (both ordering searches and doing the Vendor’s Questionnaire) on behalf of the Agent is fine;
- the Form 1 preparer can arrange for the Vendor to sign the Form 1. The legislation only requires that the Agent must ensure that the “Part D – Certificate with respect to prescribed inquiries by registered agent” is sent to the Vendor within 48 hours of signing of the certificate by the Agent (or the person authorised to sign on their behalf). There is nothing in the legislation saying who has to send the Form 1 (including the signed Part D – Certificate) to the Vendor to review and sign it. It is then up to the Vendor to sign the Form 1. Again – it does not matter who sends the Form 1 to the Vendor or how it is sent to them;
- the Form 1 preparer can arrange for the Form 1 to be served on the Purchaser. The legislation only requires that the Vendor serve, or cause to be served a Form 1 on the Purchaser. This service can be done by the Form 1 preparer, the Agent or the Vendor. Obviously, the parties will want evidence of service, but that is the same whether it’s served by the Form 1 preparer, Agent or Vendor.
That is why it is so very important for Agents to:
- Have clear, written instructions with their authorised Form 1 preparers, to clearly set out who is authorised to do what for each transaction.
- Use Form 1 preparers who they trust to carry out those tasks properly on their behalf.
- Be clear on what access they want to the prescribed inquiries (searches and Vendor’s Questionnaire), as well as the Form 1 itself (to satisfy themselves that these inquiries have been made).
- Review the Form 1 carefully.
- Ensure the Form 1 preparers who they outsource to have adequate PI insurance for all aspects involved in the preparation, certification and service of Form 1s.
Eckermann Property Forms prepare Vendor Statements on behalf of Agents and private vendors. Our Eckermann Property Forms Portal provides a seamless experience for vendors, agents and admin teams. If you are unfamiliar with how the Eckermann Forms Portal works and the benefits it can provide to you, your team and your Vendors, please contact Hayden Eckermann on 0418 825 302 or via email@example.com.
Eckermann Property Forms is a fully digital service with the capability to do everything on a paperless basis; from ordering searches, to signing and serving. Property Forms | Eckermanns – Eckermann Property Forms & Services