If you are in the market for buying a property, the vendor must disclose to you all known encumbrances on the property or any other issue which may affect your decision to purchase.
Also known as the vendor’s disclosure, this is done through the comprehensive FORM 1 document which covers a whole range of matters that may affect the land being purchased.
The Form 1 is not to be confused with the Property Interest Report (PIP). The Form 1 must be signed by the vendor and it will disclose other matters which are not in the PIP, such as those known by the vendor only.
The Form 1 is very important for another reason. It is often a misconception that the cooling off period begins after the contract of sale is signed. A cooling off period of two business days begins after the Form 1 is served on the purchaser. This may be before or after a contract is signed.
Knowing exactly what you are buying from the outset could save a lot of heartache later on. And if an issue arises after settlement that was not disclosed, the purchaser will have a legal basis to pursue a remedy from the former vendor.
So, don’t get caught up in the emotion of buying a home. The Form 1 is there to protect your rights as the purchaser.
If you would like to know more about this topic, or would like us to prepare a Form 1 for you, please contact us: (08) 7282 1926 or firstname.lastname@example.org