Buying, leasing or subleasing a disclosure affected building or area
If you are seeking to buy, lease or sublease a disclosure affected building or area the seller or landlord must:
- have a current Building Energy Efficiency Certificate (BEEC) or exemption registered on the Building Energy Efficiency Register; and
- display the building’s NABERS Energy for offices rating on all advertising.
There are significant penalties if the seller or landlord does not comply with this requirement unless they meet certain exemptions. All current registered BEECs are available to view on the Building Energy Efficiency Register.
What information is contained in a BEEC?
The BEEC certifies how energy efficient a building or area is. It combines two assessments:
- the NABERS Energy for offices rating for the building or area; and
- the Tenancy Lighting Assessment (TLA) for the building or area.
The assessments can only be carried out by CBD Accredited Assessors.
The BEEC provides tenants and buyers with important information on the energy efficiency of the disclosure affected building or area. There is also information showing common ways to improve the building’s energy efficiency and reduce operating costs.
Tenant and buyer rights
If you are a constitutional corporation who is interested in buying, leasing or subleasing a disclosure affected building or area, you have a right to ask for a current registered BEEC.
The request must be in writing and made while the building or area is being offered for sale, lease or sublease.
Where a request is made, a current registered BEEC must be provided as soon as reasonably practical.
The Building Energy Efficiency Disclosure Act 2010 (BEED Act) imposes penalties for failing to comply with this requirement. Certain exemptions may apply.
Tenant obligations
You may have obligations under the CBD Program if you are a tenant (or sub-tenant) in a disclosure affected building or area.
Often both the owner and the tenants determine the energy use in a disclosure affected building or area. This affects the assessment process that must be carried out by a CBD Accredited Assessor for the BEEC application. The CBD Accredited Assessor may need to ask a tenant for specific information about a building’s energy use and may require access to the disclosure affected building or area.
Required access to the disclosure affected building or area must be provided at a reasonable time (such as during business hours).
The Secretary of the Department of Climate Change, Energy, the Environment and Water (the department) has powers under section 18 of the BEED Act to require the provision of access and/or information. If these powers are exercised, you and other relevant parties will be informed in writing.
Penalties for not supplying access or information
A Court can impose civil penalties if you don’t provide required information or access to the CBD Accredited Assessor following a notice in writing.
Civil penalties for each breach of (as of 7 November 2024):
- Up to $165,000 for a body corporate for each day of contravention; or
- Up to $66,000 for an individual for each day of contravention.
An infringement notice for non-compliance can also be issued by the Secretary of the department.
Each infringement notice can be (as of 7 November 2024):
- Up to $16,500 for a body corporate for each day of contravention; or
- Up to $6,600 for an individual for each day of contravention.
Read more
- There are benefits to knowing the energy efficiency of office space before buying or leasing
- Check whether this applies to you
- Real estate agents have an obligation to comply with the CBD program
- Owners, landlords have rights and obligations under the CBD program
- Certain leasing transactions can trigger disclosure and other obligations.
- Check whether an exemption may apply.