The Real Estate Agent has sent through the contract. This is an exciting time. You and the Vendor have agreed on a price, and the signed contract will make it binding. Next comes the Form 1. But just what exactly is a Form 1, or a contract for that matter.
The contract comes before the Form 1, so let’s look at them in order…
The contract is the legally binding paperwork. Once signed, it commits both the vendor and the purchaser to the sale transaction of the property. This document will detail the important dates and conditions that have been agreed to. The over-arching thing to keep in mind with the contract is that it’s 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 that you need to have a really good look at it to ensure everything you need has been included and that the dates etc are achievable and realistic. In fact, you need your conveyancer 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 imperative that you get their advice before signing.
The Form 1 is the document in which the vendor is obliged to disclose any information on the property that you are entitled to know by law. This may include information regarding easements and encumbrances, or development approvals. Again, this is another document you’ll 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 be quick. Once you receive the Form 1 you have two full business days and then the deposit becomes due the next business day after (commonly known as the “cooling-off period”).
Properties purchased at an auction, by a company, by assignment, or by an option to purchase, are not subject to a cooling off period in South Australia.
There are other things that may need to be completed before the end of your cooling-off period, such as a pest and building inspection. So time is of the essence, with the most important factor being your conveyancer’s involvement.