A friend of mine forwarded me an email that's being sent around saying that if the "Cap and Trade" Bill that just passed in the House gets through the Senate, home sellers will need to make energy saving repairs before they'll be allowed to sell their homes. Maybe you received a similar email. Here's part of what it said:
A year from now you won't be able to sell your house.
The caveat is, that if you have enough money to make required major upgrades to your home, then you can sell it. But, if not, then forget it. Even pre-fabricated homes ("mobile homes") are included. In effect, this bill prevents you from selling your home without the permission of the EPA administrator.
To get this permission,you will have to have the energy efficiency of your home measured. Cost $200 to start. Then the government will tell you what your new energy efficiency requirement is and you will be forced to make modifications to your home under the retrofit provisions of this Act to comply with the new energy and water efficiency requirements, which easily could cost over $50,000.
Then you will have to get your home measured again and get a license
(called a "label" in the Act) that must be posted on your property to show what your efficiency rating is; sort of like the Energy Star efficiency rating label on your refrigerator or air conditioner. If you don't get a high enough rating, you can't sell.
When I read this I almost fell out of my chair. How could this be so close to becoming law? These are huge changes that will affect real estate big time. Why haven't I heard about this?
So I went and tried to read the bill myself. As usual, it's very difficult to be certain that one is understanding all of the nuances but I just couldn't pull out of the language a clear statement that what I read in the email was actually in the Bill.
So I did a little more research and found a fact sheet that the NAR recently put out. It takes each point and shows how they were able to change those items. At least for now, those burdensome measures aren't in the Bill as passed.
Claim: "The bill mandates energy audits and labeling before any home in America is sold."
Fact: The bill does not create a federal energy audit or labeling requirement. As introduced, the original bill would have required energy audits and labeling at the time of sale. However, Realtors succeeded in making many positive changes before the bill passed. Many published reports are not based on the version of the bill that was considered by the House. As approved, the bill:
• Does not create energy audit requirement for real property at time of sale.
• Exempts existing homes, multifamily and commercial buildings from any federal energy labeling guidelines such as the existing federal Energy Star label program (section 204(m)), and
• Leaves the decision entirely to state governments whether to pass a law to require labels, but expressly prohibits labeling during a transaction (Section 204(h)).
I'm grateful that the NAR was able to get those changes made. But it's probably just a matter of time before someone tries to sneak those items back in there.
Just like we keep finding out new things that were stuck in with the healthcare bill that no one knew about, I'm sure there are many items buried in this Cap and Tax Bill that will shock a lot of people. Unfortunately, once it passes it will be too late.
I wouldn't be surprised if they eventually come after our commissions too. I can see it now. We'll have a "Windfall Commission Tax". 90% of any commission over something like $10,000 will be taken by the government in order to cover the government bailouts due to foreclosures and short sales. After all, weren't Realtors a driving force and beneficiary of the bubble on the way up? If they can cap doctor's fees and insurance rates, they can cap Realtor commissions.
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