This entry is part 10 of 13 in the series Green Deal

Landlord and Agent Duties

Owners, landlords and their agents must follow strict disclosure and acknowledgement rules in relation to any property that has a green deal plan attached.

Green deal provider must produce an EPC document

Section 8(4)(b) Energy Act 2011 requires that as soon as practicable after the improvements have been installed, the green deal provider must produce an energy performance certificate which takes into consideration the improvements made and provides information about the green deal plan now attached to the property.

Landlords and agents must provide the EPC disclosure document at or before a viewing

Section 12(2)(b) Energy Act 2011 provides that a prospective landlord or licensor must provide the EPC disclosure document produced above free of charge to any prospective tenant or licensee. The EPC disclosure document must be provided at or before the time the prospective tenant (or licensee) views the green deal property [19].

Offer to take property made by prospective tenant

If no viewing takes place (making it impossible to comply with above) but nonetheless, the prospective tenant makes an offer, either orally or in writing or, the prospective tenant simply makes an offer (orally or in writing) before a viewing takes place, then, the EPC disclosure document must be provided at or before the time the offer is accepted subject to contract, or, if no written contract is to be created, the EPC must be provided before the oral contract to let the property is made [20].

Currently occupying but not a as a tenant or licensee

If a person (but not a tenant or licensee) occupies a green deal property (perhaps a lodger of a tenant for example) and that person requests information about the property or information about becoming a tenant (or licensee), the EPC disclosure document referred to above must be provided as soon as practicable after the information request is received by the landlord but before the contract to let the property is made [21].

What is a prospective tenant?

In all the cases above, the EPC disclose document containing the green deal information must be provided to a prospective tenant (or licensee). A person becomes a prospective tenant or licensee when s/he:

  • requests any information about the property for the purpose of deciding whether to let the property,

  • makes a request to view the property, or

  • makes an offer, whether oral or written, to let the property.

[22]

Agreement to agree

Under rare circumstances, it is possible that no tenancy is drawn up in the first instance and instead, the parties (potential landlord and potential tenant) intend to agree their intention to draw up a tenancy agreement sometime in the future (I suppose this might be used where a house is yet to be built for example).

Where a potential landlord (or licensor) intends that a transaction or arrangement is to be entered into under which a potential tenant (or licensee) is to have a right to occupy the property and that arrangement is not a contract for a tenancy (or licence), nor is the arrangement a transfer of ownership and, it is intended the arrangement will be made in writing and it is intended the potential tenant will occupy the property within three years of the arrangement and will be the bill payer when occupying, then, the potential landlord must provide the potential tenant free of charge the EPC disclosure document containing the green deal information or, if that document has not yet been produced by the green deal provider, the potential landlord must provide a document containing the same information in connection with the green deal plan as the disclosure document would have contained.

The disclosure detailed above must be provided no later than seven days before the transaction or arrangement is to be entered into or if that is not practicable, as soon as practicable before the transaction or arrangement is to be entered into [23].

Transactions or arrangements to change bill payers

Where a person who is the current energy bill payer intends that there is to be a transaction or arrangement under which s/he agrees with another person that they are to become the bill payer at the property and the intended transaction or arrangement is not to be a contract for a tenancy (whether to be in writing or oral), nor an agreement to agree nor an intended transfer of ownership then, the current bill payer must provide the prospective bill payer the EPC disclosure document containing the green deal information free of charge or, if that document has not yet been produced by the green deal provider, the current bill payer must provide a document containing the same information in connection with the green deal plan as the disclosure document would have contained.

This disclosure must be provided no later than seven days before the transaction or arrangement is to be entered into or if that is not practicable, as soon as practicable before the transaction or arrangement is to be entered into [24]

No EPC containing the green deal information has been produced

If the EPC document containing the green deal information has not been produced by the green deal provider by the time the prospective landlord needs to give it to any prospective tenants as required in all the cases above, the prospective landlord must either obtain the document or, the prospective landlord must produce a document containing the same information in connection with the green deal plan as that document would have contained [25]. This document produced by the prospective landlord must be provided to prospective tenants at the same times as s/he would have given the EPC disclosure document detailed above. The green deal provider will be able to provide the information necessary to assist a landlord in producing such a document.

Consent previously obtained

Disclosure to a prospective tenant as detailed above is not required if consent was obtained from the prospective tenant obtaining permission to enter a green deal plan if they were intending to be the bill payer prior to their occupation of the property which has a green deal plan attached. This is because the consent will have contained details about the green deal plan such as the amount of the instalments payable and the length of the term.

Agents

In all these situations where a prospective landlord must give the EPC disclosure document which contains information about the green deal plan, an agent may provide the document on behalf of the prospective landlord [26].

Sanctions for failing to disclose

If the Secretary of State is satisfied that the prospective landlord has failed to provide the EPC disclosure document or, failed to provide the EPC document after the specified time (so after the viewing etc.) or, if the bill payer suffers substantive loss because the EPC did not comply with the Energy Performance Regulations, then, the Secretary of State must request the green deal provider to cancel the liability of the bill payer and any subsequent bill payer to make payments under the plan from the date of the breach. In addition, require the green deal provider to refund the bill payer any instalments paid under the plan in respect of a period after that date. The Secretary of State may also impose compensation on the landlord or agent (as a fixed sum or in instalments) representing:

  • the indebtedness of the bill payer and any subsequent bill payer under the green deal plan at the date of the breach less the rebate on early settlement; and

  • a compensatory amount being an amount equal to the cost which the green deal provider has incurred as a result of the indebtedness under the green deal plan being discharged at the effective date.

  • [19] Regulation 3(2) The Green Deal (Disclosure) Regulations 2012  ↩

  • [20] Regulation 3(4) ibid  ↩

  • [21] Regulation 3(8) ibid  ↩

  • [22] Section 12(4) Energy Act 2011  ↩

  • [23] Regulation 43 & 44 The Green Deal Framework (Disclosure, Acknowledgment, Redress etc.) Regulations 2012  ↩

  • [24] Regulation 49 & 50 The Green Deal Framework (Disclosure, Acknowledgment, Redress etc.) Regulations 2012  ↩

  • [25] Section 12(2)(a) Energy Act 2011  ↩

  • [26] Section 12(3) Energy Act 2011  ↩

  • Series Navigation<< Repayment of the Green Deal Plan||Green Deal Acknowledgment Requirements >>

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