Aug 19

Energy Consumption Evaluation in Nevada FAQ’s

  • What is it?
    1. NRS113.115 requires home owners/sellers to provide an “Energy Consumption Evaluation” (ECE for short) on a form provided by the Nevada Energy Commissioner. (In addition to the “Sellers Disclosure” form).
  • Who has to fill-in the form?
    1. The form MUST be completed by the “Seller” or a “Certified Inspector” as defined by NRS645D.040 (Certified residential inspector). It cannot be completed by the real estate agent, Energy Auditor, or anyone holding other certifications like “RESNET” or “BPI’s” unless they are a Nevada Certified Inspector in good standing as well.
  • Does it only apply to homes listed after January 1st?
    1. The new law applies to any and all homes listed either before or after January 1st. If a home was listed before the 1st and the transaction does not close by December 31, 2010, the seller will need to provide the ECE form the following day to a potential buyer. Including those that are already in escrow and those that are into the contingency period!
  • Do the banks need to provide the ECE form on a foreclosed home?
    1. No, foreclosure properties are one of the allowed exceptions by NRS113.115.
  • Are “Short Sale” transactions exempt?
    1. No, “Short Sale” properties are still treated as “owned” by the current owner of the property and not the bank and the seller must provide the ECE form.
  • My clients just had a full Energy Audit performed for which they paid $A.LOT. Can they use that Audit Report?
    1. No. “Energy Audits” performed by “Energy Auditors” or “Raters” certified by RESNET, BPI, or other organizations, using infrared thermal cameras and other equipment are not what the law requires. However, the seller can copy some of the information provided in the audit to complete the ECE form.
  • How much will it cost?
    1. The ECE (Energy Consumption Evaluation) should cost between $125 to $225 average, depending on the size of the home and which inspector performs the evaluation and provides the form.
  • How long will it take to perform the ECE if an inspector does it?
    1. The ECE should take no more than a typical home inspection.
  • If a seller pays for an ECE and does not sell the home, how long is the ECE valid for?
    1. The ECE is valid for a period of five (5) years from the date it is performed and can be transferred to other buyers within the same original 5 year period.
  • Does this apply to commercial properties?
    1. Currently, there is no specification for commercial properties (retail, industrial, etc.) and a distinction has not been made as to whether multiple dwelling units like apartment buildings are included. Only Residential homes, condominiums, and townhomes are expected to have the ECE performed.
  • What other exemptions are there where and ECE is not required?
    1. In addition to properties in foreclosure,
    2. Properties that are sold between current co-owners, spouses or persons related within the third degree of consanguinity.
    3. A person that temporarily takes position to facilitate the sale of the property when the owner relocates to another county, state, or country.
    4. If the seller and purchaser agree to waive the requirements of the ECE.
  • If a buyer and seller waive the ECE, does the buyer need to provide it if he/she is to sell the house later?
    1. Yes, unless the new buyers are willing to also waive the ECE. If the new buyers are now willing to waive it, then the ECE must be performed by the owners or by an auditor/inspector with the added expense to the owners.
  • Where can I get the form?
    1. The form will be made available online at http://renewableenergy.state.nv.us by the Energy Commissioner.

John Chavez, President, BLUEsky Home Services
Nevada Certified General Inspector of Structures IOS-0104-GEN
California General Contractor Lic. 789974