Commercial Building Disclosure – threshold halves from 1 July 2017 – Are you ready?

22 June 2017
Gail Black, Partner, Brisbane

From 1 July 2017, the threshold for the compulsory Commercial Building Disclosure (CBD) of an office building’s energy efficiency will reduce from 2,000m2 to 1,000m2.

The legislation, which commenced in 2010, requires most owners of office buildings to have a current building energy efficiency certificate (BEEC) before offering to sell or lease their property.

The disclosure obligations currently only apply to sales or leases of 2,000m2 or more of net lettable area of office space. However, from 1 July 2017, the regime will expand significantly to capture sales and leases of 1,000m2 of net lettable area of office space. The disclosure requirements also apply to subleases.

The seller or landlord must also:

  • include the building’s NABER’s energy star rating in any advertisement for the sale or lease of the property;
  • not sell or enter into a sale without a BEEC;
  • not lease or enter into a lease without a BEEC; and
  • provide a copy of the BEEC to a potential buyer or tenant on request.

Some buildings are exempt, for example:

  • new buildings if the certificate of occupancy is less than 2 years old;
  • strata titled buildings; and
  • mixed use buildings where the total office space is less than 75% of the building.

The BEEC must be included on the building energy efficiency register.

Significant penalties apply for not complying, which can accrue for each day of non-compliance.

This update does not constitute legal advice and should not be relied upon as such. It is intended only to provide a summary and general overview on matters of interest and it is not intended to be comprehensive. You should seek legal or other professional advice before acting or relying on any of the content.

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