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The Federal Government is expected to introduce new laws in mid 2010 which will require the disclosure of energy efficiency information for commercial office buildings.
It is important that commercial office building owners consider the timeframe and costs associated with obtaining the information to be disclosed now so that sales and leases are not delayed when the disclosure regime commences in mid 2010.
Who will be affected by the mandatory disclosure regime?
Owners of commercial office buildings in Australia that have a net lettable area of more than 2000 square metres must disclose the energy efficiency of the building when it is offered for sale and lease.
The mandatory disclosure regime will initially only apply to Building Code of Australia Class 5 buildings. Class 5 buildings are office buildings used for professional or commercial purposes.
At this stage the following exemptions are anticipated:
What energy efficiency information needs to be disclosed?
The National Australian Built Environment Rating System (NABERS) energy star rating for the base building will need to be included in all advertising material for the sale or lease of office space that exceeds 2,000 square metres.
In addition, a Building Energy Efficiency Certificate (BEEC) will need to be provided to prospective buyers and tenants.
The BEEC will need to include the following information:
It is expected that BEECs will have to be lodged with a central register. Penalties of up to $100,000 may apply to building owners or agents where the disclosed information is not accurate.
Mandatory disclosure – how do commercial office building owners prepare?
Although the new laws are yet to be finalised, property owners together with selling and leasing agents should start to prepare now for the mandatory disclosure regime as the lead-time required for an initial NABERS assessment can be lengthy.
Legal documentation for sale and lease agreements will need to also be updated to contemplate the introduction of the mandatory disclosure regime.
This publication is for information only and is not legal advice. You should obtain advice that is specific to your circumstances and not rely on this publication as legal advice. If there are any issues you would like us to advise you on arising from this publication, please let us know.
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Cooper Grace Ward acknowledges and pays respect to the past, present and future Traditional Custodians and Elders of this nation and the continuation of cultural, spiritual and educational practices of Aboriginal and Torres Strait Islander peoples.
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