The importance of a Form 1 – Vendor’s Statement when selling residential property in SA

In South Australia, it is a statutory requirement under section 7 of the Land and Business (Sale and Conveyancing) Act 1994 (SA) (the Act) for a residential property seller to provide a Form 1 - Vendor’s Statement to the prospective purchaser. The Form 1 can be served on the purchaser either before or after the signing of the contract, but no later than 10 days before the settlement date.

A Form 1 discloses information gathered from “searches” of various agencies and government departments about the listed property. These include (but are not limited to):

• Title and valuation details;
• Mortgages that give lenders of finance certain rights over the property;
• Covenants that require the property owner to do (or refrain from doing) something;
• Any easements held by one party to use the land (for example, vehicle access, drainage, or sewerage infrastructure);
• Zoning information;
• Declarations of any cultural, heritage, or environmental impacts;
• Details of outgoings such as council and water rates, Emergency Service Levy and Land Tax;
• Any court orders or charges over the land that would need to be discharged before the land can change hands;
• Any compulsory acquisition orders; and
• Any council approvals on the land.

The Form 1 does not provide information about:

• The condition of buildings;
• Whether they comply with building regulations;
• The accuracy of measurements on the title; or
• Encroachments.

A building inspection report from a qualified inspector can provide this information.

The seller is legally responsible for the information contained in the Form 1, which is usually prepared by the vendor’s legal adviser/conveyancer. Therefore, the Form 1 must be factually accurate and complete. If it contains false, incorrect, or insufficient information, a buyer may choose to back out of the sale or take legal action.

Except in instances where the property is purchased at auction or by a company, the purchaser is entitled to a “cooling off” period (2 business days) in which the purchaser may withdraw from the contract, if necessary, by giving written notice to the vendor or acting agent.

Given that the Form 1 - Vendor’s Statement is a statutory disclosure document, it is an offence if it is not prepared in accordance with the Act. Serious consequences apply to both vendor and agent if the Form 1 is found defective or invalid. Scammell & Co’s registered conveyancers are experienced and efficient in the preparation of these all-important documents.

For further information on Scammell & Co's Adelaide conveyancing services click here

*This information is current at the time of publication. For accurate legal advice, please contact Scammell & Co on 08 8440 270.