Participants repay the loan over time through a Clean Energy Improvement tax added to their property tax bill. The financing is tied to the property—not the owner—and may be transferred to a new owner if the property is sold.
Don’t get caught off guard by the financial responsibilities that come with a property that has participated in CEIP. Know where to look for this information to help prepare your client for a smooth transition.
Contact the City of Calgary at ceip@calgary.ca to determine whether a CEIP loan is attached to a property before listing or writing an offer.
Payment terms
Owners have up to 20 years to pay back CEIP loans, based on the lifespan of the upgrades chosen. View the program’s full Terms and Conditions here.
Things to consider when selling a property with a Clean Energy Improvement loan attached to it:
• The seller must disclose the Clean Energy Improvement agreement to their REALTOR® and prospective buyers.
• The Clean Energy Improvement tax appears on the property’s tax certificate and as a line item on the annual property tax bill.
• The tax can be transferred to the new owner or paid off in full.
• Before listing a property or making an offer on a property outside of Calgary, check with the municipality to confirm whether CEIP loans are offered.
When purchasing a property with a Clean Energy Improvement tax:
• The seller should provide the buyer with a copy of the Clean Energy Improvement Agreement, which outlines the upgrades made to the property.
• The buyer should decide whether to assume the repayments or require the seller to pay the balance in full.
• To assume the payments, the buyer and seller must sign the Assignment, Novation and Release form (Schedule E in the Clean Energy Improvement Agreement), available on the City of Calgary website, and submit it to the city.
• Buyers should be aware that any outstanding repayments may remain on the property after possession, regardless of whether the required paperwork has been completed.
The City of Calgary has created a helpful resource for buying or selling a property with a CEIP loan: Buying or selling a home info sheet.
With demand for energy-efficient homes on the rise, and programs such as the CEIP available to support upgrades, be sure to look for signs of financial obligations tied to the property. These may include liens and caveats on title, as well as amounts shown on the property tax bill.
If you would like to learn more, the City of Calgary provides additional information on Clean Energy Improvement taxes in the “Resources” section of its webpage, Clean Energy Improvement Program (CEIP).
{ 0 comments…}