Disclosure of energy costs and ratings to prospective purchasers of real property required.
Impact
If enacted, HF1138 will impact statutory provisions related to real estate transactions by codifying the need for energy-related disclosures. This may lead to increased awareness among prospective buyers about the long-term costs associated with energy use, potentially influencing purchasing decisions. By ensuring that these details are upfront, the bill could encourage sellers to invest in energy-efficient improvements, ultimately benefiting the environment and promoting sustainability in the housing market.
Summary
HF1138 mandates that sellers of residential real estate disclose energy costs and ratings to potential buyers. Specifically, the bill requires that, over the previous 12 months, sellers disclose information on electricity, natural gas, and water costs. Additionally, utilities must provide cost information upon request from a seller or their representative, which aligns with a push for greater transparency in energy consumption in residential markets. Listings for residential properties will also need to include these disclosures, along with a Home Energy Rating System Index score where available.
Contention
While the bill seeks to promote transparency, potential points of contention may arise regarding compliance burdens for sellers, particularly smaller property owners who may find it challenging to gather and report this information. There might also be concerns about how such transparency could affect property values in different markets, especially if properties with high utility costs become less attractive. Discussions could also focus on ensuring that the data provided by utility companies is accurate and that it does not unintentionally bias buyers against certain properties.
Contract requirements for deeds between investor sellers and purchasers of residential real property modified, recording provisions modified, disclosures required, right to cancel provided, and civil remedies authorized.
Contract for deed requirements between investor sellers and purchasers of real property modification; recording provisions modifications; disclosures requirement; right to cancel and civil remedies authorization
Owners of certain buildings required to enter energy use data into benchmarking tool, public disclosure of energy use data required, grants provided, report required, and money appropriated.
Energy; biennial budget established for Department of Commerce, Public Utilities Commission, and energy, climate, and clean energy activities; energy and utility regulation provisions established and modified; enhanced transportation electrification provided; various clean and renewable energy grant programs established; reports required; and money appropriated.