Keeping you in touch with the law

IN THIS ISSUE:

Property Law

Obligations of Landlords 

and Vendors of Commercial 

Buildings.

Family Law

Problems with Couples 

Living Separately Under the 

one Roof.

Guarantees

Technical Issues Where 

Bank Enforces Guarantee.

W

The introduction of the Building  Energy Efficiency Disclosure Act 2010  What does this mean for Landlords and Vendors of commercial buildings? 

 Welcome to this edition of Law Talk, the Client Newsletter of Atkinson Vinden. 

In this edition, we provide a summary for landlords and vendors of commercial buildings in relation to the new Building Energy Efficiency laws. These new provisions will have wide ranging implications.

Annabel Murray of our Family Law team highlights the problems which can occur where separated couples attempt to live together in the former matrimonial home.

Finally, we provide a brief summary of the issues which can arise when a bank seeks to enforce guarantee documents.

We trust that the information in Law Talk is of value and relevance to you.

Warm regards.

Continued on page 2

L a w Ta l kAtkinson Vinden Lawyers

T The National Strategy on Energy Efficiency 

was  an  initiative  of  the  federal,  state 

and  territory  governments  as  part  of  a  broad 

package  of  measures  to  encourage  building 

energy  efficiency.  The  program  is  managed 

by  the  Australian  Government  Department  of 

Climate Change and Energy Efficiency.  

The initiative has led to the enactment of the 

Building Energy Efficiency Disclosure Act 2010 

(the Act). Accordingly, from 1 November 2010 

most  vendors  or  landlords  of  office  space  of 

2,000  square metres or more will  be  required 

to obtain an up to date energy efficiency rating.

The  Act  provides  for  a  transition  period 

for  the  first  year  of  the  program  where  a 

valid  National  Australian  Built  Environment 

Rating System (NABERS) Energy base or whole 

building rating can be disclosed.

On  and  from  1  November  2011,  a  full 

Building  Energy  Efficiency  Certificate  (BEEC) 

will  need  to be disclosed. BEEC’s  are  valid  for 

12 months, must be publicly accessible on the 

online  Building  Energy  Efficiency  Register  and 

includes: 

n  a NABERS Energy star rating for the building;

n  an assessment of tenancy lighting in the area 

of  the building  that  is being  sold or  leased; 

and 

n  general  energy  efficiency 

guidance.

The  NABERS  Energy  star 

rating must also be included 

in any advertisement for the 

sale, lease or sublease of the 

office space.

Exceptions and ExemptionsThe  main  categories  of  exceptions  to  and 

exemptions  from the obligation  to disclose an 

up to date energy efficiency rating at the point 

of sale, lease or sublease are:

n  exceptions to the program for certain offices 

and circumstances, which are set out  in  the 

Act and Regulations,

n   exemptions  from  the  program  that  may  be 

granted by the Secretary of the Department 

of  Climate  Change  and  Energy  Efficiency 

in  certain  circumstances.  These  types  of 

exemptions  require  an  application  to  be 

made to the Secretary; and

n   exemptions  from  the  information  gathering 

provisions in the Act. 

ExceptionsIn certain circumstances, buildings and office 

Sheena Joshi

space that would otherwise be considered disclosure affected 

under  the  legislation,  will  not  be  required  to  comply  with 

the  disclosure  obligations.  Currently  this  exception  is  only 

available to buildings: -

n  that are either new or subject to major refurbishment and 

a  certificate  of  occupancy  has  either  not  been  issued  or 

issued less than 2 years prior; 

n  that are subject to strata title; or 

n   that has total office space comprising less than 75 per cent 

of the building by net lettable area (or gross lettable area if 

net lettable area is unavailable). 

In addition, the following transactions do not give rise to 

a disclosure obligation, even if the relevant office space is a 

disclosure affected building: -

n  the sale of a building through the sale of shares or units or 

the sale of a partial interest in a building, or

n  leases and subleases of 12 months or  less  (including any 

option to extend). For example, a six month lease with an 

option to extend for another six months would not trigger 

a  disclosure  requirement.  However,  a  six  month  lease 

with an option to extend for 12 months would trigger a 

disclosure requirement. 

ExemptionsAn exemption from a disclosure 

obligation  may  be  sought  in  the following circumstances: -n  where a building or area is used 

for police or security operations; or

n  cases where an energy efficiency rating cannot be assigned because of the characteristics of the office. This class covers disclosure affected offices for which a NABERS Energy base building or whole building rating  assessment  is  not  possible.  For  example,  where there  is  insufficient  data due  to  extensive  vacancies  over an  extended  period,  it  may  not  be  possible  to  rate  the building  according  to  the  NABERS  rules.  However,  this will be a matter of professional  judgement for a NABERS Accredited Assessor. 

Exemptions from information gathering provisionsThe  Act  sets  out  information  gathering  provisions  that 

enable accredited assessors  to obtain  information and gain access to a building or tenancy to conduct an assessment.

Generally,  owners  and  tenants  must  comply  with  an information gathering notice issued by an accredited Assessor. However, under certain exceptional circumstances, owners and tenants can apply for an exemption from these requirements.

Transition periodUnder the Act there will be a transition period for the first 

twelve months of the program.The  Act  commenced  in  July  2010,  but  the  energy 

efficiency  disclosure  obligation  did  not  commence  until  1 November 2010.

From 1 November 2010  to 31 October 2011, a NABERS base or whole building rating can be disclosed instead of a full BEEC. This applies whether the office is a building or an area of a building.

In order to meet the Act requirements, the NABERS Energy rating must: -n   be obtained either before or during the transition period;n  be a base building or whole building rating;n  be current; and n   be  publicly  accessible  on  the  Commercial  Building 

Disclosure program website. From  1  November  2011,  a  full  BEEC  will  need  to  be 

disclosed  and  must  be  publicly  accessible  on  the  Building Energy Efficiency Register. 

ConclusionOwners  of  office  buildings  should  obtain  an  energy 

efficiency rating as soon as possible to avoid delays in sales or leasing.

Owners may also wish  to consider whether any upgrade works or  changes  to building operations  should be carried out to improve the building’s energy efficiency. 

Should you require any further information on the above please contact Sheena Joshi on (02) 9411 4466.

Property Law Continued

Family Law

We have noticed an increase in separated couples living together in the former matrimonial home either

because one party refuses to move out or because neither party can afford to move until the property settlement has been completed. Separation under the one roof is challenging and can be a source of ongoing conflict with relatively limited legal solutions.

Take  the  example  of  Nick  and  Anna.  Nick  and  Anna  had 

ongoing difficulties  in their marriage which culminated when 

Nick came home drunk from work and made threats against 

Anna when she told him not to wake their sleeping children. 

Nick’s  behaviour  was  threatening  and  Anna  contacted  the 

police who  took out an  interim, or  temporary, Apprehended 

Violence  Order  against  him.  Consequently  Nick  was 

restrained  from  being 

in  the  home  if  he  had 

consumed  alcohol 

within  the  previous 

12 hours  or  if  he was 

consuming  alcohol.  

Anna sought our legal 

advice about whether 

she could legally force 

Nick  to  move  out  of 

the  home  altogether 

given that they were 

now separated.  

The  Courts, 

and  the  Police, 

when  issuing 

A p p r e h e n d e d 

Violence  Orders 

(AVOs) are generally reluctant to order a person  to  leave 

their home unless there is good reason to do so. Under the law 

a person is entitled to remain living in their family home even if 

the property is not registered in that person’s name.

The  Police  can  issue  a  wide  range  of  interim  AVOs  which 

include limiting when a person can approach the other party 

or enter the home. They can issue a broader AVO to prevent 

any contact with the other party or an order that the offending 

party leave the premises and not return for the duration of the 

order. If the police do not take out the AVO, then an individual 

can also apply for a private AVO through the Local Court.

Once  the  interim  AVO  has  been  made,  then  the  matter 

is  listed  before  a  Magistrate  at  the  Local  Court.  A  police 

prosecutor acts on the protected person’s behalf. In this case, 

Nick agreed to having a final AVO made preventing him from 

approaching Anna and the children if he had consumed alcohol 

within 12 hours.  The Magistrate  agreed  to 

make  the  order  on  these  terms.  For  Anna 

however  it  meant  that  Nick,  provided  he 

was  not  drinking  alcohol,  could  remain  in 

the  home.  She  wanted  him  to  move  out 

however  she  agreed  to  the  making  of  the 

limited AVO.

The  Family  Law  Act  provides  two  other 

mechanisms by which a person may seek an Order restraining 

the  other  person  from  entering  or  remaining  in  a  place  of 

residence.  These  orders  are  frequently  referred  to  as  “sole 

occupancy orders”. Section 68B of the Family Law Act enables 

the Court in parenting  proceedings  to  make  an  Order 

restraining  a  person  from 

entering or remaining in a place 

of  residence,  employment  or 

education  of  the  child.  In 

those circumstances the Court 

would  need  to  be  satisfied 

that the making of an Order 

is necessary to protect either 

the  child  and/or  other 

persons  living  with  the 

child or having responsibility 

for  that  child  including  the 

other  parent.  Consequently 

there  is  case  law  in  which 

a  father  was  verbally  hostile 

and  abusive  towards  the 

mother  in  the  presence  of 

the children.  While the father 

was not physically violent,  the 

mother  successfully  obtained  an  Order  under  Section  68B. 

However, to obtain this order, parenting proceedings need to 

be commenced in either the Federal Magistrates Court or the 

Family Court of Australia.

In Anna’s case, the children did not witness any outbursts by 

Nick towards Anna and, while their marriage had ended, the 

parties remained relatively amicable and were working together 

towards  selling  their  property  without  litigation  so  that  they 

could  afford  to  live  separately  and  apart.  Consequently  this 

Section 68B would not assist Anna.

The  second  sole  occupancy  order  that  can  be  made  is 

pursuant  to  section  114B  of  the  Family  Law  Act.  Again  the 

Courts will exercise great caution before ousting a person from 

their home in deciding whether or not to make the order. The 

Court must be satisfied that there are compelling reasons for 

ordering a person not to return to their home, such as family 

W

Can I get my Ex to Move out of the House on the Breakdown of our Relationship? 

Annabel Murray

Guarantees

I  In  2010  an  important  case  of  Macquarie Bank v Thomas  was  determined  by  the  Courts.  A  property 

development failed and the bank issued proceedings against 

the  guarantors.  Creatively  one  of  the  guarantors  sought  to 

argue that, although he had signed the guarantee, there was 

inadequate “consideration” for his guarantee as he did not 

receive a benefit from providing the guarantee. However, the 

Judge  concluded  that  there was  adequate  consideration  in 

that the terms of the guarantee itself left no room for doubt 

that  the  guarantee  was  provided  in  consideration  for  the 

provision of  the  loan by  the  lender  to  the borrower.  In  the 

guarantee documentation the guarantor also acknowledged 

incurring obligations for valuable consideration received from 

the lender.

Accordingly the technical defence raised by the guarantor 

failed.

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Family Law Continued

violence.  The  Court  will  take  into  account  the  circumstances 

of  the  particular  case  and  consider  whether  or  not  it  would 

be  reasonable,  sensible  or  practicable  to  expect  that  person 

to remain in the home longer. Consequently  the Court would 

need to take  into account which party could afford to obtain 

alternate  accommodation,  the  practicality  of  obtaining  that 

accommodation and the benefits in making such an Order.

It  is  important  to note  that  if  a Sole Occupancy Order was 

made,  it  does  not  confer  on  the  remaining  party  any  extra 

entitlement  to  the  property  nor  confer  any  assumption  of 

ownership of  it.  In Anna’s  case  it would be very unlikely  that 

the Court would make an Order preventing Nick from living in 

the home.

In  these  circumstances  Anna  adopted  a  practical  approach 

and we put  together  a property  settlement offer  for her  and 

Nick  which  after  negotiations  was  agreed  upon.  The  parties 

sold  their  property  and  used  the  net  sale  proceeds  towards 

setting up their own separate accommodation.

For  any  questions  regarding  Family  Law  generally,  call 

Annabel Murray on (02) 9411 4466.