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How does noncompliance with CALGreen affect your purchase agreement?

On Behalf of | Jun 3, 2024 | Commercial Real Estate, Litigation

California has long been committed to pushing sustainability. This pledge is evident in its laws that promote the reduction of greenhouse gas emissions and the use of renewable energy. As a potential property owner in the Golden State, you would want your commercial building to be eco-friendly as well. Not only is this a responsible choice for the environment, but it can also lead to cost savings and increased property values.

As you go through your real estate transaction, it is essential to understand how California’s Green Building Standards Code (CALGreen) could impact your purchase.

What is CALGreen, and how does it affect property owners?

CALGreen is a mandatory part of California’s building code that reflects the state’s commitment to sustainability. It requires all new buildings, additions and modifications to include certain green features. For commercial buildings, these can include installing energy-efficient lighting, using low-flow water fixtures and providing recycling facilities.

Noncompliance with CALGreen could lead to penalties and could also impact the value and marketability of your property. If you bought a property knowing that it is compliant with CALGreen but is not, you could take legal action and sue the seller for a breach of purchase agreement and misrepresentation.

How does legal guidance help?

A purchase agreement is a legal contract between a buyer and a seller of real estate. It outlines the terms and conditions of the sale, including any disclosures about the property’s condition. A breach of purchase agreement leading to a legal dispute can be frustrating and daunting. But with the guidance of an experienced real estate attorney, you can grasp your situation and take the necessary next steps with ease.

CALGreen aims to reduce greenhouse gas emissions, conserve energy and water and promote sustainable building practices. However, compliance with CALGreen is not just about meeting green building standards. It also has significant implications for real estate transactions. By understanding these requirements and working with a capable real estate attorney, you can protect yourself from potential breaches of purchase agreement and ensure a smooth real estate transaction.