News & Media
CHANGES TO FORM 1
20 Dec 13
CBS had advised REISA of the following changes to the Form 1.
As you know, the Land and Business (Sale and Conveyancing) Act 1994 requires a person who sells land to disclose information to the purchaser using the Form 1 Vendor’s Statement (Form 1). The information includes government interests, other encumbrances and charges, which may affect the enjoyment, safety and value of the land. It assists the purchaser to determine if they want to proceed with the purchase. Form 1 is prescribed in Schedule 1 to the Land and Business (Sale and Conveyancing) Regulations 2010 (regulations).
The majority of the Form 1 content is obtained from the Property Interest Report provided by the Land Services Group of the Department of Planning, Transport and Infrastructure. The Land Services Group has announced that from 1 January 2014, customers will be able to order a Form 1 template product via PropertyAssist. The new product will attract the same fee as a Property Interest Report.
The new product will pre-populate the Form 1 template with the information currently provided in the Property Interest Report. This product should provide efficiencies and reduce errors for clients as they will no longer need to transcribe the information between the Property Interest Report and the paper based Form 1.
The introduction of the Form 1 template product coincides with changes to the legislation that amend cooling-off provisions. The opportunity has also been taken to update the regulations. Form 1 has been reformatted to make it suitable for use as an editable PDF form, and obsolete references in Form 1 and Form 2, for the sale of a small business, have been updated. A copy of the Land and Business (Sale and Conveyancing) Variation Regulations 2013, which updates the regulations, can be found on the SA Government legislation website at www.legislation.sa.gov.au.
The variation regulations provide a grace period of two months before vendors’ statements must be prepared using the new forms. Accordingly:
- Until 1 March 2014 a vendor’s statement may be prepared using a form that was in operation immediately before 1 January 2014;
- Any vendors’ statements served on or after 1 January 2014, that were prepared between 1 November 2013 and 28 February 2014 (inclusive), on a form in operation immediately before 1 January 2014, must be accompanied by a prescribed notice explaining changes to the cooling-off provisions. This prescribed notice will be available on the REI FormsNow platform.
- A vendor’s statement must be accurate as at the date of service on the purchaser; and
- Vendors’ statements prepared before 1 November 2013 may not be served on or after 1 January 2014.