The green deal introduced new types of arrangement for the installation of energy efficient measures, called a “Green Deal Plan”. The installation of efficiency measures are to be paid for wholly or partly in instalments collected through electricity bills for the property.
When there is a change in the electricity bill payer disclosure of the green deal plan must be made to the prospective new payer within a specified time.
Therefore from 28 January 2013 these regulations will specify the time when information must be disclosed to prospective buyers, tenants and licensees.
The three specified times for disclosure are introduced relating to different circumstances.
At or before viewing the property or as soon as practical after an information request; or
Sales other than auction:
At or before viewing the property or before acceptance of an offer subject to contract to sell the property being concluded; or
Sales by auction:
A the time when oral bids commence or as soon as practicable after receipt of a written bid but before the bid is accepted.
Disclosure is not required where:
- At the time the green deal plan at the property was entered into, a confirmation was given under regulation 36 of the Framework Regulations in respect of the green deal plan; or
- The buyer/tenant was previously a prospective tenant or licensee who satisfied the disclosure requirements.
Where there is a change in the electricity bill payer, the new payer must acknowledge they are aware there is a green deal plan at the property.
There are two new forms of acknowledgement that apply where:
- The green deal plan contains an earlier repayment term; and
- The green deal does not contain an early repayment term.
The requirement for an acknowledge is removed where the buyer, tenant or licensee gives confirmation at the beginning of the green deal. This confirmation must be in writing and contain the amount of payments in instalments to be made under the plan, the intervals at which they are payable and the period for which they are payable.
If you need to discuss this or any other property related issue please feel free to contact the author, David here.