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Building Energy Efficiency Certificates

As of 1 July 2017, owners, landlords and tenants intending to sell, lease or sublet office space with an area of 1000 m² or more may be required to first obtain a Building Energy Efficiency Certificate.  The Certificate must provide details with respect to the energy efficiency, water usage, waste management and environmental quality of the building by way of a star rating system.

Disclosure Affected Building/Areas

These obligations apply to:

(a) a “disclosure affected building of 1000 m2 or more” - being a building that is used or capable of being used as an office; and

(b) a “disclosure affected area of a building of 1000 m2 or more” - meaning an area of a building that is used or capable of being used as an office

When is a Building Energy Efficiency Certificate required

 A Certificate is required for a disclosure affected building or disclosure affected area of a building of 1000 m2 or more:

(a) If the owner is a company and:

               a. Offers to sell the building;

               b. Invites an offer to enter into a contract for the building or creates a right to purchase the building; or

               c. Offers to lease or sublet the building or offers to enter into an agreement granting a right to lease or sublet the building; or

(b) If the owner is an individual/s, and a proposed purchaser or tenant is a company and wishes to purchase or lease the building – in that case the purchaser/tenant company can require the owner to provide a current Certificate; or

(c) If a tenant intends to sublet all or part of its leased building and the tenant is a company, or if the proposed subtenant is a company and requests a Certificate.

Exemptions

A Certificate is not required in the following circumstances:

(a)       New buildings where a certificate of occupancy has not been issued or was issued less than two years earlier;

(b)       Buildings for which a major refurbishment has been undertaken and a certificate of occupancy was issued less than two years earlier;

(c)       Strata-titled buildings;

(d)       Mixed use buildings where the total office space comprises less than 75% of the building by net lettable area;

(e)       Sales of a building via a share or unit sale or sales of a partial interest in the building;

(f)        Leases and subleases for a term and options which together total 12 months or less;

(g)      An offer to enter into a contract between wholly owned subsidiaries of an entity or between an entity and a wholly owned subsidiary of that entity;

(h)       Other limited circumstances.

If you are seeking to:

     (a)     sell, lease or sublet a disclosure affected building or area, or

     (b)     wish to lease or sublet such a building and want information about the building before you commit to the Lease, you should obtain advice.

Published May 2018


For further advice or assistance

Contact Cathy Drake on 5337 0264 or cdrake@nevetts.com.au

The information in this publication or on this website is of a general nature only. It is not, nor is it intended to be, legal advice. You should consult a lawyer for individual advice about your particular circumstances.
The information on this website is of a general nature only. It is not, nor is it intended to be, legal advice. You should consult a lawyer for individual advice about your particular circumstances. Nevett Ford do not warrant that information contained in links to third party sites are correct and accept no responsibility for the accuracy and reliability or any other matter in relation to a third party site.