The State of Oregon is considering a bill that would change the face of real estate disclosure. In the past sellers have disclosed what they know about a property. House Bill 2839 would require a seller to investigate what they do not know when it comes to the energy efficiency of their home.
“House Bill 2839 would require sellers of real property to obtain an energy audit and provide a copy to each buyer that makes a written offer to purchase. This would allow a buyer to withdraw an offer within three days after receiving an energy audit.” The average audit or performance test costs $350-$500 for a typical residential home and takes over a week to get results.
In Queensland, Australia sellers are required to disclose what they do know about the energy efficiency of their home. Their version is the Sustainability Declaration. Reference guide to the Sustainability Declaration states:
A home cannot be advertised for sale (by a seller or a seller’s agent) unless the advertisement contains information about where a potential buyer may obtain a copy of the completed sustainability declaration.
A few of the questions in the declaration appear in one form or another in our Real Estate Disclosures but they do go much more in depth than what we have.
I’ve had some interesting conversations about the proposed House Bill. Some of the theory comes from the work by Earth Advantage that was done on our NW Hoyt remodel project which I was interviewed by KOIN News for. I know that I like the idea of having a Miles Per Gallon version for housing. I am not so sure that sellers should have to provide it and that it should not be another potential buyer due diligence issue. I think we’ll see a lot of debate and tweaking before moves much further forward.
Your thoughts? Good? Bad? Ideas to improve?
Image from the Sustainability Declaration reference guide.