The Council of Australian Governments (COAG) National Strategy on Energy Efficiency (NSEE) observed in July 2009:

“Energy consumption in buildings accounts for approximately 20 per cent of Australia’s greenhouse gas emissions – split equally between commercial and residential buildings.”

The Queensland Government has passed legislation implementing a mandatory system of disclosure of energy efficiency in residential buildings which will apply to sales of residential buildings from 1 January 2010.  The legislation implementing the system is the Building Act (Qld) 1975 and the Property Agents and Motor Dealers Act (Qld) 2000.

It will be mandatory for sellers to complete the statutory sustainability declaration form before their property (any residential house, unit or townhouse) is marketed for sale (either through private sale or through an agent).  This requirement will apply to all properties being marketed as at 1 January 2010.  This includes new listings from 1 January 2010, plus existing listings being marketed as at 1 January 2010.

The Seller or agent must not publish a relevant advertisement unless the advertisement includes information about where a person may obtain a copy of the current sustainability declaration or a copy of the declaration accompanies the document.

At any time the property is open for inspection (by either the seller or agent) the sustainability declaration must be conspicuously displayed so prospective buyers entering the property can view the declaration.  If the property is an inspection by appointment (as opposed to an open house), the prospective buyer must either be given a copy of the declaration prior to entering or the declaration must be conspicuously displayed during the inspection time.

If a prospective buyer requests a copy of the declaration, the seller or agent must give them a copy as soon as practicable.  This can be supplied electronically.

If a buyer incurs a loss or expense because the seller provides a false or misleading declaration or the document is not prepared with reasonable skill and care, the seller may be liable to compensate the buyer for the loss or expense.

The buyer will have no right to terminate a contract if the declaration is incomplete or contains information that is false or misleading.

Agents will not be able to publish a relevant advertisement unless the advertisement includes information about where a person (prospective buyer) can get a copy of the declaration.  Publish is defined as “to publish on the internet or cause to be published” and relevant advertisement is defined as “an advertisement in any form or medium, other than an advertisement in a newspaper or magazine or a generic for sale signboard”.

If the property is marketed (advertised) on the internet or promoted in any form other than magazine or newspaper, reference must be made in the marketing (advertising) as to how the prospective buyer can obtain a copy of the declaration.  For example, window cards must also refer to how the sustainability declaration can be obtained.

The Building Act imposes a legislative duty on all sellers of residential houses and units in Queensland to complete the declaration or to appoint a representative, or third party such as a builder to complete the form.  The signing of the form cannot be delegated to a third party, other than a duly authorized person legally, such as through a power of attorney.

Under section 246B of the Building Act (Qld) 1975 the Sustainability Declaration must be in the approved form.

The Sustainability Declaration Form and a Guide on how to complete it are available to download from the Queensland Department of Infrastructure and Planning website at: http://www.dip.qld.gov.au/sustainable-housing/sustainability-declaration.html