Purchasing a new home is undoubtedly one of the most exciting, yet stressful of life experiences.  Recently we had the absolute privilege to assist a young family secure their ‘dream home’.  They, like many new couples, quickly realised that becoming a home owner was about much more than simply identifying their search area, drawing up a wish list and agreeing on a maximum budget.  In fact, finding their ‘forever home’ was only the beginning of a long and complicated process that would be filled with more than one legal pot-hole.

You see, purchasing a new house is a big task that extends well beyond the primal need to find a place to live.  Common factors in this choice may include:

• Location
• An intention to renovate
• Price
• Proximity to friends, relatives, schools and amenities
• Aesthetics

Too often once the property is purchased, upon closer inspection of the documents, the new owner discovers that their ‘dream property’ fails to meet their needs.  For example:

• You wish to run your business and consultation rooms from your house, only to find out that council won’t approve it.
• You intend to demolish the building to build a brand new home, only to realise the house is heritage listed which doesn’t allow you to touch it.
• You purchase the house in an auction for an absolute steal, only to realise afterwards that it needs many repairs that you didn’t notice beforehand. It suddenly becomes a costly investment.
• You plan to subdivide the property only to find out there is an encumbrance that doesn’t allow for it.
• The building has a demolition order from the council.
• You buy a strata unit with the intention of building a deck, only to find out that the council has fire-proofing restrictions that don’t allow for a deck to be constructed.

These situations are ones which your conveyancer should actively be working to avoid before you cool-off from a contract

At Welden & Coluccio Lawyers, we scrutinise both Contracts & Form 1’s during your cooling-off period in order to identify any potential issues related to the property. As legal professionals we always have our client at the forefront of our minds, and we understand that buying a home is a daunting process. Our job is to assure our clients that even the most apparently insignificant details are never overlooked so that you can purchase your property with eyes wide open.

So, list the reasons as to why you wish to purchase your home, and make it known to us as your conveyancer.  In this way when we act for you, we know exactly what you want, and we can work towards your goal together.  Fortunately the family I mentioned previously did just this and having a team of lawyers in their corner meant that they did indeed get their ‘happily-ever after’.

Selling your family home?  Thinking of purchasing property?  At some point, be it as a purchaser or a vendor, you will come across a Form 1.  Whichever side of the real estate fence you stand on it is worthwhile understanding exactly what this document is.

In a nutshell the Form 1 is a formal statement served on the purchaser which provides details of the property being transferred.  This includes delivery of the cooling off rights.  The Form 1 accompanies the contract of sale and it is a legislative requirement.

Many real estate agents prefer to order searches and will have the Form 1 prepared and ready to go shortly after the property is listed and available when open inspections commence.  In this way the document is ready to serve immediately after a sale contract has been accepted by all parties.  Doing so will go a long way to ensure that a sale is secured as quickly as possible.

Don’t neglect to update Form 1’s

Occasionally, a sale contract falls through or a property is left on the market for an extended period of time.  Either scenario can result in the information contained within this document becoming outdated.  Similarly, other factors may also lead to a Form 1 becoming outdated.  These may include the commencement of a new financial year, or when a new quarter ticks over (which is when local councils, SA Water and other government departments will update their information).

A thorough and comprehensive Form 1 will stipulate all outstanding balances which will be adjusted prior to, or at settlement.  This information must be correct at the time of service. If the facts and figures stated in the Form 1 are outdated, there is a possibility that the Form 1 could be determined to be defective.

While many of the searches can be updated within a 3 month period at no additional cost, councils will charge for updated rates information even within that initial 90 day period.  Once a new financial year begins, councils and government departments are even more likely to charge for providing this updated information or they may even require that a whole new search is undertaken.  Often a vendor may be alarmed at this (and therefore reluctant to pay for fresh searches), especially if they are unfamiliar with the role and importance of the Form 1.  However, it is critical to bear in mind that a defective Form 1, if left unresolved, gives the purchaser the ability to ‘cool off’ from the contract at any stage prior to settlement.  This is obviously something to be avoided at all costs.  Clearly, while frustrating, the additional costs required to update searches, offers the peace of mind that the Form 1 is accurate, a small price to pay in comparison to a purchaser withdrawing from a contract on the day of settlement due to a defective Form 1 .