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APril 20, 2009 Updates on Mandatory Home Energy Audits based on the following news release:

News Release: Two Thirds (65%) of Ontario Homeowners Oppose McGuinty Government Proposed Mandatory Home Energy Audit Program  

For my comments about mandatory home energy audits See my Blogs:

http://www.livingincollingwood.com/blog

http://activerain.com/blogs/collingwoodrealestate

The following is the response to yesterday's announcement by the
Government of Ontario in which they proposed mandatory energy audits for all
homes sold.
News Release

Contact: Bob McLean

Director of Communication

Ontario Real Estate Association

647-284-0466

Mandatory home energy audit could significantly hurt home sellers in an already tough economy

Ontario REALTORS® agree with the principle of energy efficiency for homes expressed in the Government of Ontario’s proposed mandatory home energy audit, but they say that the additional costs will hurt homeowners, especially in these economic times.

“This mandatory government regulation will impose a significant cost on home sellers. As with most Canadians, we don’t believe in green at any cost,” said Gerry Weir, President of the Ontario Real Estate Association. “It’s not the initial cost of these audits that concerns us,” he said. “Rather, the results of these audits will be used by home buyers as bargaining chips to significantly reduce the final selling price.

“Today’s economic downturn is a terrible time to introduce this measure. Home sellers are already worried about lost equity in their homes. A move like this, which will reduce their value even further, will not help them in any way,” Mr. Weir said.

REALTORS® favour government encouragement of energy efficiency in homes through expanded tax breaks and other measures.

In addition, REALTORS® point out that there is no one standard for energy audits. Different firms arrive at different assessments of the same house. “EnerGuide ratings of an existing home can and do vary between energy auditors, depending on the assumptions they make and the extent of data they collect on the building’s actual construction,” Mr. Weir said.

Furthermore, since there is no regulation of energy auditors, a conflict of interest can arise if a contractor conducts the audit. There is a natural inclination for that contractor to find problems that he can offer to repair for the homeowner.

Many details of the energy audit proposal have not been released. For instance, the government has not said if an energy audit will be required if a property is transferred between family members. Nor have they said how long an energy audit will be recognized as valid. For example, if a homeowner sells within one year of buying a property, will the previous energy audit be recognized?

The Ontario Real Estate Association represents 45,000 brokers and salespeople who are members of the 42 real estate boards throughout the province. Members of the association may use the “REALTOR®” trademark, which identifies them as real estate professionals who subscribe to a high standard of ethics and service.

OREA serves REALTORS® through a wide variety of professional publications, educational programs, government lobbying and other services. A division of the association, the OREA Real Estate College, provides all real estate registration education courses in Ontario.

Bob McLean
Director of Communication
Ontario Real Estate Association
99 Duncan Mill Road
Toronto, ON M3B 1Z2
(416) 442-3407
mclean@orea.com<mailto:mclean@orea.com

Link to MacLean's article March 2009 The Shocking Truth about the Value of Your Home