Selling, leasing or subleasing a disclosure affected building or area

If you want to sell, lease or sublease a disclosure affected office building or area, you must:

If you are not a constitutional corporation (see definition here) but you are advertising to sell, lease or sublease a disclosure affected building or area, and a constitutional corporation requests a BEEC in writing, you must provide them one.  There are also specific disclosure obligations for certain property transactions.

The Building Energy Efficiency Disclosure Act 2010 (BEED Act) imposes penalties for failing to comply with these requirements unless you meet the criteria for an exemption.

All currently registered BEECs are available to view on the Building Energy Efficiency Register.

How do you get a BEEC

The BEEC certifies how energy efficient a building or area is. It combines two assessments:

The assessments can only be carried out by CBD Accredited Assessors.

Your obligations  

Your obligations begin the moment you approach the market to sell, lease or sublease the building or area that is disclosure affected.

You need to have a current BEEC registered on the Building Energy Efficiency Register before you begin any advertising or invite any expressions of interest or offers. The registered BEEC must still be current when the lease or sublease commences, or the contract of sale is exchanged.

The BEEC can expire before the settlement of the contract of sale. However, if the contract of sale, or the lease/sublease is terminated or rescinded, a current registered BEEC will be required before the property can go on the market again.

To avoid any delays, it’s a good idea to start preparing well before you intend to approach the market.

Registering a BEEC

  1. Check if the building or area is disclosure affected.
  2. If it is disclosure affected, search the Building Energy Efficiency Register to find out if there is a current registered BEEC that covers all the areas being offered for sale, lease or sublease.
  3. If there isn’t a current registered BEEC, you will need to begin the process to have the area assessed for a BEEC.
  4.  The assessment must be done by a CBD Accredited Assessor, who will apply for the BEEC on your behalf.

You don’t have to maintain a current registered BEEC unless you are advertising or offering to sell, lease or sublease a disclosure affected building or area.

However, if you want to be able to consider unsolicited offers without delay, you should consider always maintaining a current registered BEEC.

If you receive an unsolicited offer without a current registered BEEC in place, you can apply for an unsolicited offer exemption. This may cause some delays.

Penalties for non-compliance

If you advertise or offer to sell, lease, or sublease a disclosure affected building or area without a current registered BEEC, there may be a breach of the law under section 11 of the BEED Act.

If you advertise and don’t include the current NABERS Energy for offices rating, then there may be a breach of the law under section 15 of the BEED Act.

A Court can impose civil penalties for each breach of (as of 7 November 2024):

  • up to $330,000 for the first day
  • $33,000 for each day after.

The Secretary of the Department of Climate Change, Energy, the Environment and Water (the department) can issue an infringement notice for non-compliance for an amount (as of 7 November 2024) of up to $33,000 per non-compliance.

Advertising rules

You must include the NABERS Energy for offices rating in all advertising materials when offering a disclosure affected building or area for sale, lease or sublease.

A Court can impose civil penalties if you don’t include the NABERS Energy for offices rating in all advertising materials when offering a disclosure affected building or area for sale, lease or sublease.

Civil penalties for each breach of (as of 7 November 2024):

  • up to $330,000 for the first day
  • up to $33,000 for each subsequent day of non-compliance. 

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 $33,000 for the first day
  • up to $3,300 for each subsequent day of non-compliance

Access to your building or area

To complete the assessment for the BEEC, the CBD Accredited Assessor needs specific information and access to the disclosure affected building or area. 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 has powers under section 18 of the Building Energy Efficiency Disclosure Act 2010 (the Act) to require the provision of access and/or information. If you can’t get the access or information you need from your tenant, then you should contact the department. Under certain circumstances you can apply for an exemption to this disclosure obligation.

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.

  • 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 1 January 2023): $16,500 for a body corporate for each day; or $6,660 for each subsequent day.

Penalties for failing to supply a BEEC on request

A Court can impose civil penalties if you don’t provide a current registered BEEC to a constitutional corporation when requested in writing.

  • Civil penalties for each breach of (as of 7 November 2024): Up to $330,000 for a body corporate; or
  • Up to $115,500 for an individual.

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 $33,000 for a body corporate; or
  • Up to $11,550 for an individual

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