The buyer must be provided with a vendor’s statement (Form 1) which gives important information such as mortgages on the property, zoning, rates and charges and anything that will limit how the buyer can use or renovate the property. (These may be called easements, caveats, covenants or encumbrances).
If the property is to be sold by auction the agent or auctioneer must make the Form 1 available at the auctioneer or agent’s place of business for three business days immediately prior to the auction and also at the place of the auction for 30 minutes immediately before the auction.
The agent must also take reasonable steps to give prospective purchasers notice of the times and places at which the Form 1 can be inspected (e.g. by newspaper advertisement, in promotional material for the sale or on the signboard advertising the sale).
The Form 1 statement must be provided to the buyer at least 10 clear days before settlement where sale is not by auction.
The Form 1 must be accurate as at the date of service on the buyer. If after service of the Form 1 there are any changes in the matters disclosed in the statement, a notice of amendment must be provided to the buyer. This alters the buyer’s cooling-off rights and effectively gives them a further two days from the service of the amended notice.