Special offer

Mandatory Home Energy Audit with Home Sales Montgomery County Maryland January 1, 2009

By
Real Estate Agent with RE/MAX Realty Services

This January 1, 2009 a home energy audit will be required to be conducted in conjunction with a home inspection when selling a home in Montgomery county Maryland.  Bill 31-07 was passed in April 2008 by the Montgomery County Council.

The Bill states;

"If a home inspection is completed in Connection with the sale of a single family home, the home inspection must include a home energy audit conducted by a qualified home energy performance rater".

A home energy audit means that someone certified in the home energy field will test the home with the appropriate equipment to test the home's efficiency and determine the steps, if any,  that need to be taken to improve the home's energy rating. 

I have searched through the State of Maryland's website and Montgomery County Website for more information.  I found where they estimate that a home energy audit would run from about $350 to $700.  This will include Town homes, I am not clear if condos will be included in this legislation or not.

It is also not clear to me if the purchaser is going to pay for this like a home inspection or if the seller is going to be responsible for the inspection prior to contract?  The other issue that is unclear to me is if the seller will have to re-mediate the items the home energy rater finds deficient with the home?

In addition the seller will be required to provide the purchaser with the home's energy bills for the 12 previous months - prior to signing the contract of sale - and any energy improvements that the seller has done to the property.  If the seller did not occupy the property for the 12 months prior to the contract of sale, Pepco will give the average electric bill for the previous 12 months.

We are awaiting new forms and updates on how this legislation will be enforced at the beginning of the year.  I will keep everyone abreast as I receive the information.

Click here for the original post

Comments (12)

Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Wow, Audrey, It's probably going to make things more complicated--in an already complicated market.  I wonder what this new inspection will cost and also who will be responsible for paying for it?  I'm also surprised that it's mandatory.

Nov 15, 2008 12:20 AM
Debbie Summers
Charles Rutenberg Realty - New Smyrna Beach, FL

Audrey - I had to read your post twice because I kept thinking to myself the entire time that this is going to open up a rats nest and I couldn't stay focused because I was thinking about what this means to a buyer and a seller....  Please keep us updated about this new initiative in your state, I'm sure that it will spread to us all.  Wow...

Nov 15, 2008 12:24 AM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

Audrey:  Montgomery County certainly is forward thinking.  I wonder if there are certain standards that must be met, or if this is informational only. 

Nov 15, 2008 02:37 AM
Sharon Richards
Kirsten Realty Tampa Florida - Tampa, FL

Audrey,

Wow, that is interesting.  Is that only Montgomery County Maryland?  I wonder how long it will take for other counties to pass the same law? Keep us updated on how this is working out with your buyers and sellers.

Nov 15, 2008 11:33 AM
Tami Vroma
West Michigan Real Estate Specialist-Five Star Real Estate - Grand Haven, MI
Realtor, Grand Rapids MI Real Estate

The idea is a good one but I don't think it should cost so dang much!!

Nov 17, 2008 04:17 AM
Audrey June-Forshey
RE/MAX Realty Services - Darnestown, MD
GRI, Gaithersburg, MD

Hi you guys.  I am surprised you noticed about our energy audit.  We are still learning about it.  I am sure it will be exciting getting it underway.  Will keep you posted!!

Nov 17, 2008 01:11 PM
Bob Cumiskey
A1 Connection Realty, Inc. - Sun City Center, FL
US Army Retired, Your Sun City Center, Florida ~ Realtor

Audrey, I can't help but wonder how many sellers are going to be po'd at this crazy new law.  What a can of worms this is opening.  Does this mean if the home is not up to standard, the seller is going to have to replace a perfectly good operational a/c unit?  And the cost of 350-700 for the inspection seems a bit high.  TECO, our electric company will come out and do an audit here for free.  Sounds like someone in MD is going to be making some money.

Nov 24, 2008 10:40 AM
Mary McGraw
GLREA - Rockford, MI
2015: Solar Energy Is Still A Simple Machine!

Audrey - this is interesting that it is being mandated. I think it is a good idea to have the audit to impart information to the new buyer, I only hope this doesn't give them a caveat to walk away from the sale if the home doesn't meet expectations. Will repairs/upgrades be mandatory? Does the home have to meet a certain score or is the rating just for informational purposes?

I have recently learned that this is being done in the UK and the homes are given an energy score - much like the energy star rating for appliances.

I would also recommend checking with local utilities. DTE in Michigan is offering a $250 rebate on audits when one recommendation is implemented (many recommendations can cost as little as $10.) Keep us abreast!

Nov 24, 2008 02:31 PM
Anonymous
Shaun

Audrey,

You may want to re-read the legislation.  It appears you are citiing sections that were deleted...the actual language of the bill that was passed requires a form and utility bills. 

Jan 05, 2009 08:38 AM
#9
Audrey June-Forshey
RE/MAX Realty Services - Darnestown, MD
GRI, Gaithersburg, MD

Thanks Shaun, I have been meaning to update this post.  I wrote this when we were told this was the legislation.  Will update.  Thanks.

Jan 05, 2009 09:01 AM
Anonymous
willymars

We've been running mandatory energy audits in Austin, TX, USA now for about 4 months.  The focus of the audits is low cost, high result problem areas, ie insulation, air and duct leakage.  There was some push back but I think the community is starting to warm up to it.  Visit www.austinauditors.com and click the "Ordinance" tab to learn about that or click the "Get Informed" to learn about home energy efficiency.

How's the response been for you guys so far?

Sep 30, 2009 04:20 PM
#11
Marty and Laurie Gale
Utah Realty - South Jordan, UT
Utah Realty | 801-205-3500 | UtahRealtyPlace.com

The new standard. HERS report which is a energy saving report done by a HERS rated inspection service. Standard on most new homes but will cost somewhere in the ballpark of $250.00-$800.00. I thought this interesting enough to share. 

May 22, 2010 05:26 AM