Summaries - Real Estate Clauses_v2_FV

Contracts for Climate Change – Summaries of Real Estate Clauses

Each of the precedents has a child’s name chosen by the drafting team. This is to encourage long-term thinking and to focus on the next generation as they will be most affected by the serious consequences if we fail to effectively respond to the climate crisis.

ALTERATION/IMPROVEMENT PROVISIONS WITHIN LEASES — ROSIE’S CLAUSE

RESIDENTIAL GREEN LEASE COVENANTS — EMMA’S CLAUSE

#greenconstruction #sustainablebuildings #education

#leases #landlord #improvement

Issue Even if new flats are built with readily available sustainable facilities, the way they are operated by purchasers/ tenants may erode the benefits of the sustainable design. Solution Emma’s Clause would introduce covenants in the leasehold agreements requiring the flat occupier to abide by rules on energy efficiency, recycling, composting and other sustainable practices. Impact Green Lease Covenants would promote environmentally conscious way of using leased properties and raise occupiers’ awareness of how to use a building efficiently.

Issue The obligation to obtain landlord’s consent in commercial leases, and the terms landlords can impose, often deters tenants from making property alternations or improvements with positive climate impact. Solution Rosie’s Clause would amend commercial leases to require landlords to act reasonably when assessing proposals which would improve the property’s environmental performance, such as its water and energy consumption or waste management. Impact The clause would encourage a more collaborative landlord/tenant relationship to improve the environmental standards of the buildings and shared areas.

GREEN ASSURED SHORTHOLD TENANCY — TORYN’S CLAUSE

REPORT ON TITLE – CLIMATE CHANGE — MARNI’S CLAUSE

#netzero #tenantimprovement #landlordandtenant

#climaterisk #reporting #environment

Issue The currentAssured ShortholdTenancies do not incentivise tenants to occupy the rental property in a sustainable way. At the same time, landlords lack ability to install renewable energy solutions while tenants are in occupation. Solution Toryn’s Clause would give tenants a rental rebate for sustainable practices (buying renewable energy, recycling and reducing waste) while allowing landlords to invest in renewable energy installations. Impact Adoption of the clause would promote energy efficiency and sustainability of shorthold tenancies.

Issue Standard Reports on Title for property do not include potential future risks of Climate Change on the property. Solution Marni’s Clause would add standard Climate Change statements to reports on title which would make buyers aware of the future risks that may affect the property. Impact The identification of risks would focus developers and buyers on solutions to make property more resilient.