Ordinance Q & A

Q: What is the Ordinance?

A: This is a point-of-sale ordinance that applies to anyone selling their home. Sellers must have an Energy Audit performed on their house and disclose the results to prospective buyers.

Q: When does the energy audit need to be done?

A: Homeowners selling their home must provide the audit to buyer three days before the buyers option period expires. Because the ordinance was unclear on this matter, on April 21, 2011, Austin City Council amended the ordinance to be defined as three days before the end of the buyers option period.

Q: Who must comply with the new Ordinance?

A: All residential, commercial or multi-family facilities that are in Austin City Limits, and receive electricity from Austin Energy. For residential this includes single family homes, homes with 4 units or less, and condos. On April 21, 2011, Austin City Council amended the ordinance to include condominiums.

Q: Who is allowed to perform these energy audits?

A: Energy audits must be conducted by a person certified by either RESNET or Building Performance Institute. In addition all auditors must be registered with Austin Energy.

Q: How much will these audits cost?

A: We are not completely sure, but they are expected to cost the seller somewhere between $300-400. The variables that will determine the cost are Austin Energy and market conditions.

Q: Is this part of the disclosure required by TREC?

A: No. Because this is a municipal ordinance the energy audit is not a part of the TREC seller’s disclosure form. This is a required disclosure for homes that receive electricity from Austin Electric Utility.

Q: When did the Ordinance take effect?

A: On June 1, 2009 the Energy Efficiency Ordinance takes effect. This means that every house sold on or after this date must comply with the ordinance.

Q: What are the penalties for not complying?

A: The fine for non-compliance will be between $200-2,000.

Q: Are there any exemptions or variances?

A: Yes. The City may grant a variance due to special circumstances. A variance may be granted if it is determined that compliance would cause undue hardship, or if the applicant submits an application for a permit to substantially remodel or demolish the house. In addition, there are some Exemptions.