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The Contract and Form 1.

Your Letter of Offer has been accepted by the Real Estate Agent, fantastic news, this is very exciting! It’s Contract and Form 1 time! But just what exactly is the Contract and Form 1. First is the Contract, then the Form 1, so let’s look at them in order.

The Contract.

The Contract is the legally binding paperwork. Once signed, it commits both the Vendor and the Purchaser to the sale of the property. This document details the important dates and conditions that have been agreed to and it is important to keep in mind that the Contract has been prepared by the agent. Don’t forget, the agent works for the Vendor, not you.

That’s not to say that it’s working against you, it just means you need to have a really good look to ensure everything you need is included and that dates etc are achievable and realistic. In fact, your Conveyancer should be consulted to look over it for you as soon as possible. Your Conveyancer’s job is to look out for your best interests, so it’s important you get their advice before signing.

The Form 1.

Then comes the Form 1. The Form 1 is the document where the Vendor is obliged to disclose any information on the property that by law, you are entitled to know. This may include information regarding easements and encumbrances, or development approvals. Again, this is a document you want your Conveyancer to check over for you as quickly as possible, to ensure there is nothing out of the ordinary or anything that could affect your future plans for the property.

But, you’ll need to act swiftly. Once you receive the Form 1, you have two full business days (commonly known as the “cooling-off period”). After this, then the deposit becomes due the following business day. Properties purchased at auction, by assignment, or by option to purchase, are not subject to a cooling-off period in South Australia. Commercial properties purchased by a company also do not have a cooling-off period.

Other things that may need to be completed before the end of your cooling-off period may include a pest and building inspection. So time is of the essence, with the most important factor being your Conveyancer’s involvement.

The Australian Institute of Conveyancers SA Division‘s website has some useful information around Contracts. Or for some more Form 1 info, take a read of this from the Legal Services Commission South Australia.

But the easiest and quickest way to find the information you’re after is to get in touch with us here.