Why and when do you need to serve a Form2 in South Australia while selling your business

FORM 2 VENDOR’S STATEMENT

The Land and Business (Sale and Conveyancing) Act 1994 provides that a Vendor’s Statement (or Form 2) must be given to a purchaser if the purchase price of the business is under $300,000.00.  This does not include GST, the price of land or any stock that is included in the sale. The Form 2 will disclose the following important information:

• The purchaser’s cooling off rights;
• Staff, including their role, hours per week and rates of pay;
• The financials for the business over the last 3 years;
• If there have been any adverse circumstances suffered by the business which
• have affected takings;
• Land or leased premises associated with the business;
• If there is an asbestos register for the business premises
• If any notices have been issued for non-compliance with the terms of the Lease;
• If any orders have been given for non-compliance with the law (for example the Food Act 2001)

For over a decade, Accelerate Business and Franchise Sales has been the go-to local business broker in both South Australia and Victoria. As deeply rooted experts in Adelaide and Melbourne, our understanding of the local business landscape is unmatched, ensuring trusted and efficient service for those looking to buy or sell businesses in these regions.