Green building litigation coming to a state near you

A lawsuit in Colorado illustrates some of the challenges that Massachusetts real estate agents, builders, appraisers, and lenders should all begin to pay attention to as the high performance home market in this state matures.

As I understand it, the suit alleges that the builder and listing broker marketed the property as LEED certified. The builder had completed a HERS rating test prior to the sale; the home’s HERS rating* was exceptional (at least from an energy efficiency perspective).  However, the builder registered the home with the US Green Building Council (USGBC), the administrator of LEED performance, but never completed the formal certification process.

The new homeowner alleges that the property was misrepresented in its marketing materials. Misrepresenting, whether knowingly or unknowingly, “green” products by marketing them as being more environmentally friendly than they actually are is known as greenwashing.  The outcome of the suit will be of interest to all of us involved in the green building industry. Certainly, with a HERS Rating of 13, the home clearly fits into the high performance category. However, the marketing of the property as LEED certified is a clear misrepresentation.

I am of the belief that any building that has been, or is in the process of receiving; a green certification should be listed by a real estate broker who is a National Association of Realtors (NAR) GREEN Designee. The NAR GREEN certification is rigorous; the course load covers nationally recognized green building certifications as well as appropriate marketing of high performance/energy efficient/green homes.

*A HERS rating of 100 is an average new construction building, most old housing stock in the US averages around 130, and a home that provides as much energy as it uses (usually with the aid of a  PV solar system) achieves a 0 HERS rating, often referred to as a net-zero home. The Colorado home was HERS rated at 13.