Massons

Office tenants and owners prepare: new laws could impact you

Written by Jodie Masson & Kate Clissold on May 1, 2017

More owners and tenants will require a Building Energy Efficiency Certificate

On 1 July 2017, the Government will lower the threshold established under the Building Energy Efficiency Disclosure Act 2010 (Cth) from 2,000 square metres to 1,000 square metres. Generally, this means that, on and from 1 July 2017, if you are:

  • a building owner who is selling or leasing office space with a net lettable area of 1,000 square metres or more; or
  • a tenant who is subleasing part of your tenancy with a net lettable area of 1,000 square metres or more,

you are now required to obtain a BEEC (Building Energy Efficiency Certificate) prior to the building being placed on the market for sale, lease or sublease.

A reminder of the obligations

You may recall that under the Building Energy Efficiency Disclosure Act 2010 (Cth):

  • A BEEC must include:
    • the building’s NABERS (National Australian Built Environment Rating System) Energy for offices star rating; and
    • a Tenancy Lighting Assessment (TLA).
  • The NABERS Energy star rating must be included in any advertising for the sale, lease or sublease of the building or office space.
    • Some buildings are currently exempt from the disclosure obligations, determined by:
    • Type of building, such as:
      • new buildings or buildings which have completed a major refurbishment (where a certificate of occupancy has not yet been issued or was issued for less than two years)
      • strata-titled buildings
      • some mixed-use buildings (with total office space being less than 75% of the net lettable area); and
    • Type of transaction, such as:
      • sales through transfer of share or units
      • sale of partial interests
      • leases and subleases of less than 12 months (including any option to extend).
  • A current, valid BEEC must be provided to all potential buyers and tenants free of charge when requested and as early as possible in the transaction enquiry process.
  • A CBD accredited assessor may require information or access to a disclosure-affected office. However, exemptions to this disclosure obligation are available where tenants:
    • are conducting sensitive police or security operations; or
    • cannot provide energy bills because they are new tenants and have yet received a bill.

Fines and other penalties apply for non-compliance.

For further information, please contact Jodie Masson or Kate Clissold.

 

Insights

HoAs – binding or not binding?

Be careful when asking for a “non-refundable” deposit in a heads of agreement that has all the hallmarks of a binding contract, it might just lock you in to the deal. In this case Mr. Patel paid a non-refundable $50,000 deposit under an HoA, and when the vendor withdrew claiming the HoA was non-binding, Mr Patel sought (and was granted) specific performance. A good reminder that it’s important for your HoA to be explicitly non-binding if that is your intention.

https://pinpoint.cch.com.au/document/legauUio3697613sl1502889120/patel-v-sengun-investment-holdings-pty-ltd-2023-aplc-23-046

August 9, 2024

Finalist - Property Team of the Year

This recognition is a tribute to all of the hard work carried out by our lawyers and support staff, and also to our wonderful clients who have been a pleasure to work with, and who provide us with such rewarding transactions.

We look forward to enjoying a fun night with our peers at the LawyersWeekly Awards ceremony in August!

 

July 15, 2024

Guarantors Beware

Not all guarantees are created equal: understanding the risks associated with guarantees in property transactions and whether you might be forced to ‘pay the price’ for a purchaser’s non-completion.

https://pinpoint.cch.com.au/document/legauUio3697901sl1503950976/ryan-v-upg-322-pty-ltd-2023-aplc-23-053

June 18, 2024

Legal 500 (Asia Pacific) Guide 2023

Sincere thanks to our wonderful clients and hard-working team for supporting our inclusion in the Legal 500 (Asia Pacific) Guide as a leading firm in Real Estate for 2023

The Legal 500 has been analysing law firm capabilities across the world for more than 3 decades in over 150 jurisdictions. Their research is based on: “feedback from 300,000 clients worldwide, submissions from law firms and interviews with leading private practice lawyers, and a team of researchers who have unrivalled experience in the legal market.”https://www.legal500.com/about-us/

February 10, 2023

"Excellence Awardee" - Boutique Firm of the Year - 2022 Australasian Law Awards

We are delighted that Massons has been selected as an “Excellence Awardee” in the category of “Boutique Firm of the Year” at the 2022 Australasian Law Awards.

Thank you to all of our wonderful clients who have supported our nomination in this category, and to our amazing lawyers and support staff for making this possible!

Wishing all the other Awardees the best of luck and looking forward to the Gala Dinner.  A night out with our team is always cause for celebration – win, lose or draw!!

March 23, 2022

Doyle's Guide 2022

We are excited about our inclusion in Doyle’s Guide for 2022 for NSW in the following categories:

Massons – Leading Property & Real Estate Law Firms
Jodie Masson – Leading Property & Real Estate Lawyers and Leading Leasing Lawyers
Leisha de Aboitiz – Leading Property & Real Estate Lawyers and Leading Leasing Lawyers
Ben Malone – Property & Real Estate Law Rising Stars

Thank you to all of our peers and wonderful clients who have helped to achieve this recognition.

March 14, 2022

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Enquiries

Phone: +61 2 8923 0900
Email: property@massons.com