Energy Efficiency Mandatory Disclosure

David Toole
Legal Director

Accredited Specialist in
Property Law

A new law makes energy efficiency disclosure mandatory for commercial office buildings.

Since 1 November 2010, owners of certain commercial office buildings are required to disclose the energy efficiency of those buildings when they are sold, leased or subleased under the Building Energy Efficiency Disclosure Act 2010 (Cth).

David Toole, who leads Williams Love & Nicol’s property law team, said that the new mandatory disclosure requirements apply to buildings and areas of buildings that are capable of being used as an office and that exceed the minimum size threshold of 2,000 square metres in net lettable area.

‘Many large city building are caught by the Act and it not only affects the owners of those buildings but also the tenants,’ David said.

“For example, the Act binds the Crown and accordingly, government departments and agencies may be subject to the Act as owner or tenant of disclosure affected office buildings in the sale, leasing or subleasing of those buildings.’

Organisations affected by the scheme will need to put in place procedures for collecting the necessary data.

‘To avoid delays in leasing or subleasing as well as a range of other issues that can come into play, owners and tenants should ensure their legal adviser has a clear understanding of the disclosure requirements under the Act.’