Stuart Parrett
Stuart Parrett
Stuart Parrett
FRICS , MAE, dipHI/DEA
PROinspect Consultancy
Progress
August 2012
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Hidden Home Purchase Charges Warning

GREEN / ENERGY DEAL ISSUES:

NEW TO A PROPERTY -­‐ DON’T GET CAUGHT OUT BY HIDDEN CHARGES:

Don’t get caught out by Adviser negligence!

Golden Rule

The Green Deal benefit must be more than the charge on your fuel bills to repay the loan to create that benefit (to pay for the Green Improvements completed).

The cost benefit in living at any particular home attaches to the fuel bill and not the owner who commissioned the improvements. This has certain ramifications that could catch you out when you buy such homes.

What to Look Out for

Following Green Deal improvements, section 11 of the Energy Bill requires the Green Deal provider to issue an updated (EPC) energy performance certificate reflecting the improved efficiency and the details of the Green Deal plan including the amount of the loan repayments. Conveyancers/Surveyors will need to ensure these revised Certificates are available.

The debt due under a Green Deal loan attaches to the new owner who is then liable for the repayments. Strict notification procedures apply to Sellers who will look to their property advisers to discharge these duties on their behalf. Basically an updated EPC must be commissioned and made available to the buyer (Section 12 of the Energy Bill).

Section 14 of the Act goes much further. It places an obligation on the seller to ensure the contract contains an acknowledgement by the buyer of his liability to take on the Green Deal payments in place of the seller, in the form of a special purchaser condition.

Failure to include such a clause in the contract can lead to the buyer being freed from liability that could lead to the Green Deal provider having a right to recover the balance owed from the seller. Obviously a seller sued in this situation is going to look to his conveyancer for compensation.

Surveyor Duty

Home Surveyors (and Valuers) are also reminded that within all Loan and Condition Reports they will need to add comment from specific site notes about Green Deal activity and loans/repayment sums. Not only do these matters potentially impact on value and interior environment issues but overspill into legal and negligence issues.

Inspection4 Ltd advice tip – When considering Green Deal improvements get advice from our Area Surveyor who will offer self-­help comment and protection.

i4 -­‐ THE POWER TO PROTECT YOU

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