Since 1 July 2015, changes to the Building Energy Efficiency Disclosure Act have been introduced that may mean that building owners do not have to disclose energy efficiency information to prospective buyers and tenants in certain circumstances.
Prior to the changes, owners of buildings that were 2,000m2 or larger were required to obtain a Building Energy Efficiency Certificate (‘BEEC’) before advertising a commercial office space for lease or sale. Owners were also required to disclose energy efficiency information to prospective buyers or tenants.
The most significant changes to the Act are as follows:
- When a genuine, unsolicited offer is received, the owner is not required to obtain a BEEC and may not be required to disclose energy efficiency information if certain conditions are met. An unsolicited offer is defined as an offer received where the owner has not advertised the building for sale or lease in the 6 months prior to receiving the offer;
- If the transaction involves an entity and their wholly-owned subsidiary, the Act does not apply; and
- If a building is validly exempt from the disclosure obligations, a new owner or landlord is not required to reapply for the exemption.
It is important to be aware of the Act and its requirements if you are dealing with a property of 2,000m2 or more.