Rachel Loizos in Legal, Home Buying
It appears that home sellers and builders will be required to provide energy audit reports to potential homebuyers beginning in 2010 pursuant to the private members bill 101, Home Energy Rating Act, 2008. Requiring builders and sellers to provide potential purchasers with information relating to the energy efficiency of a home will mean that consumers can more reasonably estimate the true costs of ownership and it is hoped will encourage builders to consider energy efficiency when beginning new projects.
The audit report requirement will apply to detached, semi-detached and low-rise residential buildings and will be phased in over the next three years. Reports will be mandatory as follows:
1) for builders when applying for a permit to build a new home on or after January 1, 2010,
2) for home sellers entering into an agreement of purchase and sale for an existing home on or after January 1, 2011; and
3) for landlords entering into tenancy agreements for the lease of a building on or after January 1, 2012.
First time Homebuyers are especially vulnerable to the effects of sticker shock as most home purchases are a great deal more expensive than the agreement of purchase and sale will ever reflect. For handy advice on how to prepare for your home purchase and prepare for the actual costs of closing, see the Realosophy HomeBuyers Guide.
Rachel Loizos is an associate lawyer at Sotos LLP in Toronto. She practices in the area of real estate law.
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