On Tuesday April 3rd, Governor Baker announced that he would be filing new legislation to add more requirements to home sales transactions. The bill, H.4371, would require sellers to complete a home energy audit prior to sale. The bill would capture single family homes and homes with up to four units listed for sale. The bill would also direct the state Department of Energy Resources to establish an energy scoring program for the sale of residential property. The Governor’s bill is similar to S.1839 An Act Relative to Home Energy Efficiency sponsored by the late Senator Kenneth Donnelly.
Under current state law home inspectors and associate home inspectors are required to provide a document outlining the procedures and benefits of a home energy audit to all clients purchasing a single-family residential dwelling, a multiple-family residential dwelling with less than five dwelling units, or a condominium unit in structure with less than five dwelling units. In addition, Massachusetts residential consumers currently pay a surcharge on their energy bills for energy audits they can have performed on their home at no additional cost.
The Greater Boston Real Estate Board (GBREB) and Massachusetts Association of REALTORS® (MAR) have consistently opposed adding new requirements at the time of property transfer. GBREB and MAR have expressed concern the legislation will unnecessarily complicate and delay the home buying process as well as impact the negotiation of contracts regarding the acceptability of the ratings. In addition, GBREB has raised concerns regarding stigmatizing older homes and adversely impacting home values.
The legislation has been referred to Joint Committee on Telecommunications, Utilities and Energy for a public hearing.