ARTICLE
15 November 2011

Building Owners Beware: Building Energy Disclosure is now compulsory

Owners of commercial buildings must have a Building Energy Efficiency Certificate when selling, leasing or subleasing.
Australia Real Estate and Construction

From 1 November 2011, owners of commercial buildings must provide a Building Energy Efficiency Certificate (BEEC) when selling, leasing or subleasing office premises.

Who is affected?

The Building Energy Efficiency Disclosure Act 2010 (Cth) requires a BEEC to be provided when:

  • An owner offers to sell, lease or sublease a building (or part of a building
  • The owner is a corporation;
  • If offered for lease or sublease, the term is longer than 12 months (including options);
  • The premises being offered has a net lettable area of more than 2000 square metres; and
  • The premises is used (or capable of being used) as an office.

However, you are excepted if:

  • The premises is part of a strata plan;
  • The premises is new (no older than two years) or has had a major refurbishment within the last two years; or
  • Office space in your building comprises less than 75% of the net lettable area of the building.

If an affected premises is owned by an individual, and a corporation offers to purchase, lease or sublease the premises, then the corporation has a right to request a BEEC. If you receive an unsolicited request to purchase or lease your premises, you cannot continue negotiating until you have provided a BEEC.

How to comply

Building Energy Efficiency Certificates are issued by an accredited assessor and must contain:

  • The energy efficiency rating for the building (a NABERS rating);
  • The energy efficiency of the lighting; and
  • General information as to how the efficiency of the premises can be improved.
  • A BEEC energy efficiency star rating must be included in any advertising for the sale, lease or sublease of affected premises.

A list of all accredited assessors can be found at www.cbd.gov.au. All BEECs are required to be registered on the public Building Energy Efficiency Register. You may use a BEEC previously registered for your premises, however they are only valid for 12 months.

Penalties

If you're a corporation, non-compliance could currently set you back $110,000 (plus $11,000 for each day the breach continues), or if you're a person $38,500 (and $3,850 daily).

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