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ReaLegal®
Leading the Way...® in
Real Estate Law
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NEW
HVAC DUCT SEALING REQUIREMENT
FOR PROPERTY
OWNERS
Starting October 1, 2005,
installing or replacing certain heating, ventilating, and air
conditioning (HVAC) equipment may trigger a requirement to
test and, if necessary, properly seal the existing ducts
connected to that HVAC equipment. The duct sealing must then
be independently verified by a certified home energy rater, at
least on a random sampling basis. If a building permit is
required, the local building department may not issue a permit
for installing HVAC equipment until the ducts are properly
sealed as verified by a certified home energy rater.
As
in any real estate transaction, if a
homeowner circumvents permit requirements by changing
out HVAC equipment without the necessary duct sealing,
the homeowner must disclose that fact to a prospective buyer
on the Real Estate Transfer Disclosure Statement (TDS). Also
as in any pending real estate transaction, if a seller
voluntarily agrees, at the buyer's request, to conduct
repairs, such as change out the HVAC equipment, the seller
also contractually agrees to comply with governmental permit
requirements pursuant to C.A.R.'s standard-form purchase
agreements. Finally, as with any item of repair after close of
escrow, buyers should ascertain upfront whether their home
warranty plans will cover the HVAC equipment, duct
testing and sealing, and subsequent verification by a
home energy rater.
The new duct sealing rule does not
change the law affecting a real estate agent's duty in real
estate transactions, and there is no law that specifically
places an affirmative duty on agents to disclose the HVAC
change-out process to their clients. Nevertheless, as a matter
of prudence, C.A.R.'s Standard Forms Committee is currently
considering a proposal to add the duct sealing requirements to
C.A.R.'s Statewide Buyer and Seller Advisory (SBSA)
form.
The new duct sealing
rule is fully set forth at California Energy Commission's
website at http://www.energy.ca.gov/title24/changeout/.
Reprinted with
permission. ReaLegal® is published by the CALIFORNIA
ASSOCIATION OF REALTORS®, a trade association representing
more than 165,000 REALTORS® statewide.
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Joanne L. Gardiner, Broker,
e-PRO Realtor
"For Old-Fashioned Service in
Cyberspace"
 
Advantage Realty
Advantage
Mortgage Associates
3205 Whipple Road - Union City,
California 94587
(510)
429-4800
San Francisco Bay Area
San Francisco
East Bay Real Estate
web site: http://www.joannegardiner.com
Our
primary services in the San Francisco Bay
Area are: East bay real estate, Hayward real
estate, Castro Valley real estate, Danville real
estate, Dublin real estate, Fremont real
estate, Newark real estate, Niles real
estate, Pleasanton real estate, San Leandro real
estate, San Lorenzo real estate, San Ramon real
estate, Sunol real estate and Union City real
estate.
The types
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