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CQS - Developments in law and practice

CQS - Developments in law and practice. CQS supporters. 01/92. Introduction. Welcome to this online training course and assessment for members of firms which have successfully applied for Year 3 re-accreditation under the Law Society’s Conveyancing Quality Scheme (the ‘CQS ’).

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CQS - Developments in law and practice

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  1. CQS - Developments in law and practice CQS supporters 01/92

  2. Introduction Welcome to this online training course and assessment for members of firms which have successfully applied for Year 3 re-accreditation under the Law Society’s Conveyancing Quality Scheme (the ‘CQS’). Course authors This training course was devised and written by Andrew Crawford and Peter Reekie in March 2013. The course authors would like to thank the members of the Law Society’s CQS Technical Panel and members of the CQS nominated by the Board for their review of this course and assessment. Click each name to find out more about the authors: Andrew Crawford Peter Reekie 02/92

  3. Introduction Andrew Crawford Peter Reekie Andrew Crawford previously worked in private practice, most recently as a partner with Thomas Eggar LLP where he was head of the residential property team. He is also a former president of the Chichester and District Law Society. Andrew is currently a full time trainer and owner of training company, AAC Law Ltd. He lectures on a wide variety of topics of interest to residential conveyancers. Together with Peter Reekie, Andrew devised and wrote online training courses to support the CQS accreditation process in 2011 and 2012. 02/92

  4. Introduction Andrew Crawford Peter Reekie Professor Peter Reekie is property training consultant with Penningtons LLP and visiting professor at the University of Law. He is director of a training company, Peter Reekie Associates Ltd., which provides in-house courses, legal training and related services to lawyers and other professionals. Peter is consultant materials editor for the University of Law’s structured commercial property programme. He is consultant editor of the Conveyancing Handbook 19th edition (Law Society, 2012) and deputy editor of Property Law UK Newsletter. Together with Andrew Crawford, Peter devised and wrote online training courses to support the CQS accreditation process in 2011 and 2012. 02/92

  5. 1. The Green Deal 03/92

  6. Background The Green Deal is a coalition government energy policy, which aims to reduce carbon emissions and save energy. It was introduced in the Energy Act 2011, sponsored by the Department of Energy and Climate Change (DECC). The Green Deal provides a framework to provide low-cost unsecured loans to fund qualifying energy efficiency improvement works to residential properties, with no significant up front cost. Uniquely, a Green Deal loan is repayable by the person liable to pay the energy bills for the property. The theory is that the energy savings from the improvements should result in a future energy bill (energy charges and loan repayments) equal to, or less than, the bill before the works. The scheme was launched on 28 January 2013. It is recommended that conveyancers read: Do we have a (Green) Deal? (Law Society article, 15 May 2013); and The Green Deal: Guidance for the Property Industry in Great Britain (DECC, 2013). The Law Society also intends to issue a Practice Note on the Green Deal. 04/92

  7. Participants in a Green Deal Click on each of the participants below to learn more about their role: Improver Bill payer Green Deal assessor Green Deal provider Green Deal installer Energy supplier 05/92

  8. Participants in a Green Deal Improver A person who wishes to make energy efficiency improvements to a property. The Improver may also be the bill payer. Click on each of the participants below to learn more about their role: Improver Bill payer Green Deal assessor Green Deal provider Green Deal installer Energy supplier 05/92

  9. Participants in a Green Deal Bill Payer The person responsible for paying the energy bill for the property. The bill payer may also be the Improver. The bill payer is the person liable to repay the Green Deal loan. Click on each of the participants below to learn more about their role: Improver Bill payer Green Deal assessor Green Deal provider Green Deal installer Energy supplier 05/92

  10. Participants in a Green Deal Green Deal assessor An organisation or individual certified by an authorised Assessor Certification Body and registered with the Green Deal Oversight and Registration Body. The Assessor (or an Advisor employed by the Assessor) provides an independent and objective assessment of a property and produces a Green Deal Advice Report. Click on each of the participants below to learn more about their role: Improver Bill payer Green Deal assessor Green Deal provider Green Deal installer Energy supplier The Green Deal Code of Practice sets out the criteria that assessors, providers and installers must follow. 05/92

  11. Participants in a Green Deal Green Deal provider An organisation authorised by the Secretary of State and registered with the Green Deal Oversight and Registration Body to: provide finance for Green Deal Plans; arrange for installation of efficiency measures; deal with consumer complaints; and give information to new bill payers. The Green Deal Provider may also be a certified Installer or contract with Installers; and employ Assessors, or contract with Assessors. Click on each of the participants below to learn more about their role: Improver Bill payer Green Deal assessor Green Deal provider Green Deal installer Energy supplier The Green Deal Code of Practice sets out the criteria that assessors, providers and installers must follow. 05/92

  12. Participants in a Green Deal Green Deal installer An organisation or an individual certified by an authorised Installer Certification Body and registered with the Green Deal Oversight and Registration Body. Only a certified Installer can install the measures agreed in a Green Deal Plan and use the Green Deal Quality Mark. Click on each of the participants below to learn more about their role: Improver Bill payer Green Deal assessor Green Deal provider Green Deal installer Energy supplier The Green Deal Code of Practice sets out the criteria that assessors, providers and installers must follow. 05/92

  13. Participants in a Green Deal Energy supplier An organisation that supplies energy to consumers and that is party to the Green Deal Arrangements Agreements under which it administers the collection of payments through energy bills on behalf of Green Deal Providers. Click on each of the participants below to learn more about their role: Improver Bill payer Green Deal assessor A Green Deal provider A Green Deal installer Energy supplier 05/92

  14. Eligible works The works that are eligible to be paid for with Green Deal finance are set out in the Schedule to the Green Deal (Qualifying Energy Improvements) Order 2012. These works include most aspects of property improvement that enhance energy savings. The most popular improvements are likely to be: insulation; solar panels; boilers; hot water systems; replacement windows; and lighting systems. However, many more items are covered by the Order, such as: biomass boilers, micro wind generation, and ground source pumps. 06/92

  15. Outline of the Green Deal procedure Click on each box below to learn more about the Green Deal procedure: 1. Assessment 2. Report 3. Green Deal Plan 4. Installation 5. Loan repayments 07/92

  16. Outline of the Green Deal procedure Click on each box below to learn more about the Green Deal procedure: 1. Assessment 2. Report 3. Green Deal Plan 4. Installation 5. Loan repayments Assessment A Green Deal Assessor is commissioned by an Improver (e.g. the householder) to assess the property and produce a Green Deal Advice Report. 07/92

  17. Outline of the Green Deal procedure Click on each box below to learn more about the Green Deal procedure: 1. Assessment 2. Report 3. Green Deal Plan 4. Installation 5. Loan repayments Report The Advice Report includes: an EPC, an occupancy assessment, recommendations for a measures to improve energy efficiency, and advice on suitability for Green Deal finance. It is lodged on an appropriate register. 07/92

  18. Outline of the Green Deal procedure Click on each box below to learn more about the Green Deal procedure: 1. Assessment 2. Report 3. Green Deal Plan 4. Installation 5. Loan repayments Green Deal Plan The Improver obtains quotes from Green Deal Providers for a Green Deal Plan, based on the recommendations in the Advice Report. The Plan is a contract between the Provider and the Improver (and the bill payer, if different) for energy efficiency improvements to be made and for finance to pay for them. 07/92

  19. Outline of the Green Deal procedure Click on each box below to learn more about the Green Deal procedure: 1. Assessment 2. Report 3. Green Deal Plan 4. Installation 5. Loan repayments Installation If the Plan is agreed, an appropriate Green Deal Installer is chosen to carry out the work. Once the installation is complete, the Provider commissions an Assessor to make a new EPC and notifies the energy supplier for the property. 07/92

  20. Outline of the Green Deal procedure Click on each box below to learn more about the Green Deal procedure: 1. Assessment 2. Report 3. Green Deal Plan 4. Installation 5. Loan repayments Loan repayments The current bill payer for the property that benefits from the measures makes loan repayments through additions to the household’s energy bill. 07/92

  21. Example of Green Deal finance A homeowner wants to improve the energy efficiency of his property and commissions an Advisor to make a Green Deal Advice Report. The homeowner obtains quotes from Providers and agrees a Green Deal Plan from a Provider. The Plan is for the installation of an energy saving measure costing £800. The loan is for £800 plus interest at the Provider’s fixed rate of 7.00% over a term of 10 years. The value of energy savings as a result of the installation is estimated by the Assessor to be £145 per annum. In the first 12 months, commencing on the date from which instalments are to be included in electricity bills, the instalments to repay the Green Deal finance must not exceed the savings of making the improvement estimated by the Assessor (Green Deal Framework (Disclosure, Acknowledgment, Redress etc.) Regulations 2012, reg.30(4)). Also, the term of the loan for the improvement must not exceed the period during which the improvement is likely to save energy (reg.30(2)). Regulation 30(4) referred to above is known as the Green Deal’s “Golden Rule”. 08/92

  22. Payment of Green Deal finance The energy supplier for the property will be required to incorporate the Green Deal repayments within the energy bill. The bill payer will receive a bill in two parts: one part will show the actual cost of the energy used; the other will show the Green Deal charge. The total should be below the actual cost of the energy bill prior to works being carried out. The Green Deal charge is calculated on a daily basis. The Provider will send the bill payer a statement of account at least once a year, but the bill payer can also request a statement of account from the Provider at any time. The bill payer has freedom to switch energy suppliers (Green Deal Framework (Disclosure, Acknowledgment, Redress etc.) Regulations 2012, reg.34) and to change the intervals at which energy bills are paid notwithstanding the existence of a Green Deal Plan (Energy Act 2011, s.5(2)(d)). 09/92

  23. Potential concerns for conveyancers Potential areas of concern for conveyancers centre on the following questions. • What if a property subject to a Green Deal Plan changes hands – who is responsible for the on-going debt that remains to be repaid? • How will necessary consents (such as planning permission, building regulations approval, and consent from the mortgagee and landlord) be obtained? • What happens when the property is tenanted or held on a long lease? • What happens on repossession or on death? • What is the attitude of lenders to a property subject to a Green Deal Plan? • What rights of termination exist for the property owner or successor should the benefits claimed not accrue or circumstances change? 10/92

  24. Change of ownership When a property subject to a Green Deal Plan is sold, provided the seller’s/landlord’s/licensor’s disclosure and acknowledgment obligations have been met, the responsibility for repaying the loan and observing any other obligations under the Plan will pass to the new bill payer for the property. Any payment arrears, however, will remain the responsibility of the person who was bill payer at the time the payment was due. Any payment arrears, however, will be the responsibility of the person who was bill payer at the time the payment was due. The Green Deal will therefore be of importance to sellers and buyers and advice may be needed from their conveyancers. The registered title and local land charges register will not include any entries relating to such finance as the Green Deal is an unsecured loan payable through energy bills, not a charge on the property. The existence of a Green Deal Plan in respect of a property must be disclosed to prospective buyers, tenants and licensees by the supply of the EPC, which contains entries regarding the Plan. A recent energy bill or statement of account from a Provider will also show the existence of a Green Deal Plan. 11/92

  25. Change of ownership Most of the works eligible for Green Deal finance are also likely to require building regulations approval. These works will become apparent from a local search. There are also plans to amend form CON 29R Enquiries of local authority (2007) to ask a question about works subject to Green Deal finance. A new edition of the form is not due to be available until 1 October 2013. The Law Society has recently revised its form of preliminary enquiries, TA6 Law Society Property Information Form 3rd edition, to make the following relevant enquiries of the seller: “ 7.6 Please supply a copy of the EPC for the property. ” “ 7.7 Have any installations in the property been financed under the Green Deal scheme? If Yes, please give details of all installations and supply a copy of your last electricity bill. ” 12/92

  26. Question – The Green Deal Is the following statement true or false? The repayment of the Green Deal debt and other obligations arising from a Green Deal Plan are paid and observed by whoever is the bill payer for the property. Click to select your answer True False 13/92

  27. Question – The Green Deal Is the following statement true or false? The repayment of the Green Deal debt and other obligations arising from a Green Deal Plan are paid and observed by whoever is the bill payer for the property. True False The correct answer is true. The Green Deal charge is payable by the person liable to pay the electricity bills for the property (Energy Act 2011, s.1(6)(a)). 13/92

  28. Disclosure Click on each box below to learn more about disclosure of a Green Deal Plan: The duty Agents Other new occupiers EPC Additional information Updating of Green Deal EPCs 14/92

  29. Disclosure The duty Information about the existence of a Green Deal Plan must be disclosed to a prospective buyer, tenant or licensee prior to the sale or rental of a property which is subject to Green Deal finance (Energy Act 2011, s.12). This duty to disclose belongs to the seller, prospective landlord or prospective licensor. The ‘disclosure document’ is the energy performance certificate (Green Deal Framework (Disclosure, Acknowledgment, Redress etc.) Regulations 2012, regs.43-50 and 2(1)). Information about a Green Deal Plan must be disclosed at, or before, the time the prospective buyer, tenant or licensee views the property (Green Deal (Disclosure) Regulations 2012). The regulatory requirements relating to the time of disclosure differ according to the circumstances, e.g. if the property is offered for sale at auction or where the buyer makes an offer without viewing the property. The Provider is required to ensure its customers are aware of the disclosure and acknowledgment obligations and the consequences of breaching them (Green Deal Code of Practice, Annex B, para.108). Click on each box below to learn more about disclosure of a Green Deal Plan: The duty Agents Other new occupiers EPC Additional information Updating of Green Deal EPCs 14/92

  30. Disclosure Click on each box below to learn more about disclosure of a Green Deal Plan: The duty Agents Other new occupiers EPC Additional information Updating of Green Deal EPCs Agents The duty can be complied with by an agent (Energy Act 2011, s.12(3)). The Department of Energy and Climate Change envisages that: the seller will give their agent a valid EPC Report Reference Number; and the agent will retrieve the EPC from the register and supply to the prospective buyer, tenant, or licensee by attaching it to the online written particulars (The Green Deal: Guidance for the Property Industry in Great Britain, p.39). The EPC need not be included with the written particulars. It may be, for instance, emailed directly to the prospective buyer, tenant or licensee. Complaints about the failure of the seller, landlord or licensor to provide the EPC can be directed to the Ombudsman Service Ltd. 14/92

  31. Disclosure Other new occupiers Where there is to be a new occupier of a property (perhaps under licence as a beneficiary under a trust) the provisions of the Energy Act 2011, s.12 do not apply. In that event before the transaction or arrangement is to be entered into, the intended occupier must have disclosure of what they are taking on. The time scale for this disclosure document to be given to the occupier is at least seven days before the effective commitment date, e.g. commencement of the licence (Green Deal Framework (Disclosure, Acknowledgment, Redress etc.) Regulations, reg. 44). Click on each box below to learn more about disclosure of a Green Deal Plan: The duty Agents Other new occupiers EPC Additional information Updating of Green Deal EPCs 14/92

  32. Disclosure Energy Performance Certificate The first page of an EPC for a property subject to Green Deal finance will state: Click on each box below to learn more about disclosure of a Green Deal Plan: The duty Agents Other new occupiers EPC Additional information Updating of Green Deal EPCs “A Green Deal has paid to install energy efficiency improvements at this property. A daily Green Deal Charge is payable via the electricity bill. Important details about the Green Deal on this information property, including the amount of the charge, can be found in the “about the Green Deal” section at the end of this EPC.” The detailed section of the EPC will include, among other items: the current daily charge and interest rate; the dates charges begin and end; the estimated savings for a typical user; a list of improvements installed, date each is paid off, and whether payments are reduced when each is paid off; and name of Provider. See Annex 2 of The Green Deal: Guidance for the Property Industry in Great Britain for an example. 14/92

  33. Disclosure Additional information A seller or bill payermay make a written request to the Provider named on the EPC for: a copy of the current credit agreement (as varied), or summary of the key rights and obligations under the Green Deal Plan; and information on the guarantees that exist in relation to the improvements. The Provider must provide this information on written request (Green Deal Code of Practice, Annex B. para.109). Click on each box below to learn more about disclosure of a Green Deal Plan: The duty Agents Other new occupiers EPC Additional information Updating of Green Deal EPCs 14/92

  34. Disclosure Updating of Green Deal EPCs There are three points when an EPC is created/updated by participants in the Green Deal: On completion of an assessment: the Assessor will lodge the EPC in the register. On completion of the improvement works: the Provider will commission an Assessor to update the EPC. On being notified of a relevant change: the Provider will commission an Assessor to update the EPC, for example, when: - information about the finance changes; - an improvement is changed or removed; - the debt is paid off early or the cost of individual improvements repaid; - alterations are made that impact on the performance of improvements; - there is a change of use of the building. See the online register of domestic EPCs here. Click on each box below to learn more about disclosure of a Green Deal Plan: The duty Agents Other new occupiers EPC Additional information Updating of Green Deal EPCs 14/92

  35. Acknowledgement In addition to disclosure there must also be a written acknowledgment from the new bill payer stating that they appreciate that a Green Deal Plan exists and that they agree to be bound by its terms including the repayment of the debt. The relevant duty belongs to the seller, or prospective landlord or licensor who must: If the tenancy is an oral tenancy, the acknowledgment can be a separate document. The acknowledgment must be in the appropriate form prescribed by regulations (Energy Act 2011, s.14(4)). There are two forms of acknowledgment prescribed by the Green Deal (Acknowledgement) Regulations 2012, which are to be used according to whether the Green Deal plan contains an early repayment term. It is recommended that conveyancers should review the prescribed forms of acknowledgment, given in regs.3 and 4. Criminal property does not include property located overseas. “secure that the contract for sale or tenancy or licence agreement includes an acknowledgment by the buyer, tenant or licensee that the bill payer at the property is liable to make payments under the green deal plan and that certain terms of that plan are binding on the bill payer” (Energy Act 2011, s.14(2)).” 15/92

  36. Property purchased without giving an acknowledgment • If a new owner becomes the bill payer and the first bill shows that a Green Deal payment is required of which they were previously unaware, the owner may make a complaint to the Green Deal Provider about the breach of the Green Deal disclosure and acknowledgment provisions. • The complaint must be made: • within 90 days of the bill payer receiving the energy bill with notification of the Green Deal Plan; or • if the recipient is owner of a property subject to a lease, within 90 days of the date on which the owner takes ownership of the property (Green Deal Code of Practice, para.4.11). • If objection is made within 90 days and if no Acknowledgment has been given then this will leave the debt still with the outgoing seller, who will have breached the terms outlined in the various regulations, and who will therefore presumably be liable for full repayment. • If the new owner or tenant does not raise an objection • then despite not having given an Acknowledgment they • will be deemed to have consented to taking over the debt. Criminal property does not include property located overseas. 16/92

  37. Consents Click on each box below to learn more about the requirements relating to obtaining consent for improvements: Improver’s duty Provider’s role Building control The Landlord 17/92

  38. Consents Click on each box below to learn more about the requirements relating to obtaining consent for improvements: Improver’s duty It is the Improver’s duty to confirm that any necessary third party consents to install energy efficiency measures have been obtained. This confirmation will be a term of the Green Deal Plan (Energy Act 2011, s.5(2)(b)). The Green Deal Code of Practice requires the Provider to give advice and guidance to the Improver on the need to obtain the necessary consents for the works, and at the earliest opportunity, to inform Improvers of the consequences if correct consents are not obtained. The following third party consents may be required: local authority building control; planning permission; the landlord; freeholder; lender. Improver’s duty Provider’s role Building control The Landlord 17/92

  39. Consents Click on each box below to learn more about the requirements relating to obtaining consent for improvements: Provider’s role Before the Green Deal is entered into, the Provider must ensure the Plan includes a term that the Improver has obtained the necessary consents (Green Deal Framework (Disclosure, Acknowledgments, Redress etc.) Regulations 2012, reg.26(1)(b)). The Provider must collect consent documentation from the Improver and store copies, in paper or electronic format, for the duration of the Plan (Green Deal Code of Practice, Annex B, para.71 and Green Deal Provider Guidance, para.2.2). Copies of consents must be supplied, free of charge, by Providers on written request from a property owner, bill payer or ombudsman service (Green Deal Code of Practice, Annex B, para.71). This may become a useful resource for conveyancers to establish if consents were obtained. Improver’s duty Provider’s role Building control The Landlord 17/92

  40. Consents Click on each box below to learn more about the requirements relating to obtaining consent for improvements: Improver’s duty Provider’s role Building control The Landlord Building control The Provider must ensure that, following installation, any work carried out under a Green Deal Plan: • “receives the necessary building control approval, including as applicable, a completion certificate from a local authority; a final certificate from an approved inspector or a compliance certificate where work was self-certified under an authorised competent person scheme.” (Green Deal Code of Practice, Annex B, para.83.) This may therefore assist conveyancers and should ensure that the incidences of Green Deal Plan works that do not comply with building regulations are very small. It does depend of course on the Code being followed and enforced. Nearly all energy conservation works will require building regulations consent (many on a self-certified basis), and some works may require planning permission. There is no equivalent duty on the provider to ensure that planning consents have been obtained. This is left to the Improver. 17/92

  41. Consents Click on each box below to learn more about the requirements relating to obtaining consent for improvements: The Landlord If a tenant of a short lease (less than seven years) wishes to carry out works under a Green Deal then they will need to obtain their landlord’s consent. If it is a longer lease then it will depend on the wording in the lease. If a covenant only requires the landlord’s consent for structural works then many Green Deal works would not fall into this category and therefore the landlord’s consent would not be needed. See: The Green Deal Framework (Disclosure, Acknowledgement, Redress etc.) Regulations 2012, reg.37. Improver’s duty Provider’s role Building control The Landlord 17/92

  42. Confirmations • Before a Plan is entered into, the Improver must obtain written confirmation in respect of the Plan and the payments made under it where there are others who have an interest in the property who are, or may become, the bill payer. See: The Green Deal Framework (Disclosure, Acknowledgement, Redress etc.) Regulations 2012, reg.36(1). • The Provider must give the Improver advice and guidance on the need to obtain confirmations and the consequences of not obtaining them. • A written confirmation must contain: • consent to the amount of the payments in instalments, the intervals at which instalments are due, and the period which they are payable; and • acknowledgment that the person giving the confirmation must pay instalments during the time he is bill payer for the property, and the other terms of the plan that bind the bill payer. Criminal property does not include property located overseas. 18/92

  43. Retention of title and the Provider’s guarantee Retention of title Where appliances have been installed, such as boilers or solar panels, title in these will pass to the property owner on completion of the works, and not once payment is made in full (Green Deal Code of Practice, Annex B, para.46). The Provider’s guarantee The Provider must agree to guarantee the functioning of the improvements to be installed to repair damage to the property caused by the improvements (Green Deal Framework (Disclosure, Acknowledgement, Redress, etc.) Regulations 2012, reg.35). Solid wall and cavity wall insulation is guaranteed for 25 years from installation. All other improvements are guaranteed for five years (Green Deal Framework (Disclosure, Acknowledgement, Redress, etc.) Regulations 2012, Sched.3, para.2). Damage caused by the installation of solid or cavity wall insulation is guaranteed for 25 years by the Provider; damage caused by other improvements is guaranteed for 10 years (Sched.3, para.3). A Provider must take out insurance so that their guarantee is honoured in the event the Provider cannot honour it in future. Criminal property does not include property located overseas. 19/92

  44. Repossession Lenders will not become liable for arrears on a repossession but will need to pay the on-going amounts as the current bill payer (Green Deal: Guidance for the Property Industry in Great Britain, para.4.3). Disconnection of supply is not permissible when a Green Deal Plan exists on a property. If an energy supplier chooses to write off some debt they must do so pari passu with the Green Deal debt. Criminal property does not include property located overseas. 20/92

  45. Lenders Policy guidance issued by the Council of Mortgage Lenders states: It is anticipated that the CML will, in future, amend Part 1 of the CML Lenders’ Handbook to reflect lenders’ wishes to be made aware prior to lending of the existence of a Green Deal Plan. Conveyancers are advised to monitor the CML Lenders’ Handbook for this change, and to always check the lender’s specific Part 2 requirements, which may vary in regard to the Green Deal. Borrowers may need to obtain their lender’s consent for future works under a Green Deal (See: Green Deal Property Industry Guidance FAQs, CML and DEEC 21 May 2013). • “lenders…will wish to know when Green Deal finance and improvements • exist so that they can assess any potential or negative impacts on their • exposure to risk, or on property valuation aspects… • …lenders will adopt their own individual policies towards the Green Deal… • …lenders will make their own individual commercial decisions in response to the Green Deal, and these may vary.” Criminal property does not include property located overseas. 21/92

  46. Implications for conveyancers • The implications for conveyancers will develop over time, but conveyancers may wish to consider the following points when a Green Deal exists: • Understand the terms of any Green Deal affecting the property. These will include, for example: • - obligations to maintain the various energy-saving installations, - not to cause damage to the installations, and - some termination provisions for the Green Deal Provider in the event that terms of the Green Deal are not honoured by the bill payer. • Ensure the client has received a copy of the EPC and understands the terms. • Consider asking the seller for more information which may need to be obtained from the stored documents held by the Provider. • Check that necessary consents for the works were obtained. • Advise clients (buyer and lender) of the financial and possible valuation implications. • Negotiation of termination of the Green Deal Plan by the seller prior to sale. • Ensure that the correct form of acknowledgment is included in the contract for sale/tenancy/licence agreement. Criminal property does not include property located overseas. Firms may wish to consider charging a supplemental Green Deal fee for advising on these issues. 22/92

  47. Question – The Green Deal Is the following statement true or false? There are statutory minimum periods of a guarantee for materials and workmanship carried out under a Green Deal Plan and this cannot be excluded by contract.  Click to select your answer True False 23/92

  48. Question – The Green Deal Is the following statement true or false? There are statutory minimum periods of a guarantee for materials and workmanship carried out under a Green Deal Plan and this cannot be excluded by contract.  True False The correct answer is true. See: Green Deal Framework (Disclosure, Acknowledgement, Redress, etc.) Regulations 2012, reg.36 and Sched.3. 23/92

  49. Links – Green Deal • Energy Act 2011 • The Green Deal Framework (Disclosure, Acknowledgment, Redress etc.) Regulations 2012 (SI 2012/2079) as amended by (SI 2012/3021) and (SI 2013/139) • The Green Deal (Qualifying Energy Improvements) Order 2012 (SI 2012/2105) • The Green Deal (Energy Efficiency Improvements) Order 2012 (SI 2012/2106) • The Green Deal (Disclosure) Regulations 2012 (SI 2012/1660) • The Green Deal (Acknowledgment) Regulations 2012 (SI 2012/1661) • The Green Deal Code of Practice • The Green Deal: Guidance for the Property Industry in Great Britain • Green Deal Provider Guidance • Green Deal Quality Mark • Green Deal Oversight and Registration Body • Department of Energy and Climate Change • Ombudsman Services Ltd • Register of domestic EPCs • Do we have a (Green) Deal? (Law Society article) • TA6 Law Society Property Information Form • Council of Mortgage Lenders Criminal property does not include property located overseas. 24/92

  50. 2. Joint ownership 25/92

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