What is a Form 1, why do I need it, and how can I ensure its accuracy and compliance?
Your offer has been accepted by the vendor! You have signed a copy of the purchase contract and have been served the Form 1. It is exciting, yet, you ask yourself, “Why so much paperwork, and what is it all for?”
In this blog, I will explain what a Form 1 is, why you need it, and how having one prepared by Tuckfield Agent Solutions can reduce some of the risks involved in the buying and selling of property.
What is a Form 1?
The Form 1 is a formal statement which must be served by the vendor (seller) to the purchaser when transacting a property. The document outlines the “cooling-off’ rights in addition to essential details relating to the property. It is a legal requirement* to serve a Form 1 to the purchasers prior to settlement.
Why do I need it?
Although it is required by law, it’s not the only reason for the necessity of an accurate and well prepared Form 1. The 48 hour “cooling-off” period begins upon receipt of the document by the purchaser. The cooling-off time allows for the purchaser and their conveyancer to look over the contract and Form 1 together, obtain any necessary advice, and ensure that all documentation is accurate and compliant with relevant laws. If the form is incorrect, it may be considered defective, which in turn may put the sale of the property at risk.
Within the cooling-off period, the purchaser may legally change their mind and exit the contract. If however, in the instance that the Form 1 is considered defective, the right of the purchaser to exit the contract remains in place until an accurate Form 1 is served. When the new Form 1 has been received, a new cooling off period begins, and concludes after 48 hours.
In addition to protecting the purchaser, an accurate and compliant Form 1 also serves to protect the vendor. For example, if a Form 1 is defective and the purchaser fails to disclose this to the vendor, the vendor’s sale is at risk until the settlement day as the purchaser can choose to cool off until either settlement is effected or an accurate Form 1 is served.
How can you avoid some of the risks?
Tuckfield Agent Solutions is a company which operates under the Tuckfield banner, and is dedicated to the accurate preparation of Form 1 documentation. We prepare these documents for Real Estate agents, clients, and conveyancers. We take pride in the preparation of Form 1’s, ensuring that risks are minimised as feasibly as possible and delivered to agents and vendors in a professional and timely manner. One of our conveyancers inspects and amends any issues on a Form 1 prior to sending it to our clients and agents. This ensures that your transaction is protected, the sale proceeds smoothly, and settles with a positive outcome.
*Section 7 of the Land and Business (Sale and Conveyancing) Act 1994
Article written by Tammy Edwards
Please note that the information contained in this article is of a general nature only and does not constitute legal advice. Tuckfields does not take responsibility for any errors or omissions obtained from the use of this information.