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.
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.