Property & Commercial News

Don’t get zapped!
Lifes’ a BEEC in the CBD

The Commercial Building Disclosure (CBD) Program is a regulatory program created under the national Building Energy Efficiency Disclosure Act 2010 (Cwth)The program requires energy efficiency information to be provided, in most cases, when commercial office space exceeding 1000sq is offered for sale or lease. The legislation requires owners/lessors to have a current building energy efficiency certificate (BEEC) before going on the market. From 1 July 2017, the compulsory energy efficiency information disclosure for commercial office buildings has been reduced from 2000sq to 1000sq which is likely to catch a few people out.

Disclosure

Who is required to disclosure the energy information?
Disclosure is required by marketing agents and prospective sellers and lessors and sublessors of commercial office space exceeding 1000sq in net lettable area.

What are your obligations?
The prospective seller/lessor must as part of their disclosure obligations:

  • obtain a BEEC prior to advertising the property for sale or lease;
  • Register its BEEC through an assessor;
  • include the NABERS star rating in the property’s advertisement; and
  • provide a copy of the BEEC to a potential buyer or tenant (usually with the contract of sale or leasing proposal).

Check here if your building already has a BEEC.

Are there exceptions or exemptions?
Yes. Exemptions apply to:

  • new buildings where a certificate of occupancy (or equivalent) has either not yet been issued or was issued less than two years earlier
  • buildings which have completed a major refurbishment for which a certificate of occupancy (or equivalent) was issued less than two years earlier;
  • Community titled buildings; and
  • mixed use buildings where total office space comprises less than 75 per cent of the building by net lettable area (or gross lettable area if net lettable area is unavailable).

Penalties for non-compliance
Significant monetary penalties may be imposed for non-compliance for the first breach and daily penalties for each day the breach is remedied.

Please contact us if you think the CBD program may apply to you.