Green lease law and regulation in Bosnia and Herzegovina

  1. 1. Issues regarding the building itself
    1. a. Requirements under public building law regarding energy efficiency.
    2. b. Do the regulations applicable under a) only affect new buildings or must all buildings be provided with energy efficiency facilities?
    3. c. Does the market pay any attention to energy certificates?
    4. d. How popular is certification of buildings (LEED, BREEAM, etc.)?
  2. 2. Issues regarding the use of the building
    1. a. Can the landlord push on the operating costs (mainly for electricity, water, heating) to the tenant following consumption or does that need to be established by the lease? Is there a distinction drawn between different types of buildings (e.g. residential, office, commercial, etc.)?
    2. b. Does a landlord have the right to perform construction measures to improve the energy efficiency of a building (also against the intention of the tenant). Is there a distinction drawn between different types of buildings (e.g. residential, office, commercial etc.)?
    3. c. Does a landlord have the right to receive a reimbursement of the costs for the measures under b)? Is there a distinction drawn between different types of buildings (e.g. residential, office, commercial, etc.)?
    4. d. If the respective rights mentioned in b) and c) do not exist by statute, but need to be established by the lease contract: Does a standard for such regulations exist (and what is its content)? Please give examples of typical regulations.
    5. e. Which other obligations regarding sustainability (building materials, energy efficiency, waste management etc.) exist? If they need to be imposed by the lease agreement: does a standard for such regulations exist (and what is its content)? Please give examples of typical regulations.
  3. 3. Allocation of costs; incentives to improve sustainability of buildings or its use.

1. Issues regarding the building itself

a. Requirements under public building law regarding energy efficiency.

FBiH: In recent years the Federal Ministry for Physical Planning has introduced a limited number of rulebooks with regards to the energy efficiency (Rulebook on Technical Requirements for Thermal Protection of Buildings and the Rational Use of Energy ( the “Rulebook on Technical Requirements”) , and the Rulebook on Energy Certification of Buildings (“Rulebook on Energy Certification”).

RS: According to the Article 59 Law on Spatial Planning and Building, every building must fulfil safety and technical standards during its construction and use and energy efficiency is prescribed as one of the standards which must be fulfilled.

b. Do the regulations applicable under a) only affect new buildings or must all buildings be provided with energy efficiency facilities?

FBiH: The technical standards prescribed by the Rulebook on Technical Requirements apply to the construction of new buildings and to the reconstruction of existing buildings. Pursuant to Article 5 of the Rulebook on Energy Certification every new object and every existing object which is a subject to sale or lease must have an energy certificate.

RS: Article 59 Law on Space Planning and Building applies to objects which will be constructed.

c. Does the market pay any attention to energy certificates?

FBiH: The owners of the buildings are obliged to provide an energy certificate to the purchaser or lessee of that particular building or premises. However, implementation of this obligation is still low. According to information obtained from the competent Ministry, they are currently in the process of introducing the relevant parties (real estate agencies, public notaries) to meet these particular obligations.

RS: According to the information from the competent Ministry, the regulations regarding the energy certificate are in the process of being prepared. They are currently preparing a draft Law on energy efficiency which should be adopted in the following year.

FBiH: According to our information from the competent energy efficiency improvement agencies the LEED and BREEAM certification standards still have not been introduced in the Bosnian and Herzegovinian real estate market. The aforementioned rulebooks prescribe for other certification standards which are generally in accordance with the EU directives from the particular field (i.e. ISO standards).

RS: Please refer to answer 1.c.

2. Issues regarding the use of the building

a. Can the landlord push on the operating costs (mainly for electricity, water, heating) to the tenant following consumption or does that need to be established by the lease? Is there a distinction drawn between different types of buildings (e.g. residential, office, commercial, etc.)?

FBiH/RS: There are two laws which govern the obligations on lease agreements (Law on Obligation Relations and the Law on Lease of Buildings and Premises). The Law on Obligation Relations is a basic law and it applies to the lease of residential premises. The Law on Lease of Business Premises applies to the lease of offices, commercial and business premises. The Law on Lease of Business Buildings and Premises was taken from the previous system and is therefore not very sophisticated, especially in matters regarding energy efficiency. However, pursuant to this law the parties may agree on how operating costs are charged. In the event that the parties have not agreed, the obligation of payment of the operating costs is borne by the tenant.

b. Does a landlord have the right to perform construction measures to improve the energy efficiency of a building (also against the intention of the tenant). Is there a distinction drawn between different types of buildings (e.g. residential, office, commercial etc.)?

FBiH/RS: According to the Law on Lease of Business Buildings and Premises a tenant is obliged to allow the landlord to make reparations on the premises which are necessary. The landlord is obliged to conduct those reparations in time and in a way which will not disturb the tenant and his business activities. Energy efficiency measures are measures which could be considered necessary reparations, therefore the tenant has to allow such works.

c. Does a landlord have the right to receive a reimbursement of the costs for the measures under b)? Is there a distinction drawn between different types of buildings (e.g. residential, office, commercial, etc.)?

FBiH/RS: If a landlord has carried out energy efficiency measures, it is possible to charge those costs to the tenant through the increase of rent. However, a tenant is not obliged to accept this change of the lease contract unless it has already been agreed (i.e. the parties have agreed that in the case of the improvement of building/premises the landlord has the right to increase the rental fee).

d. If the respective rights mentioned in b) and c) do not exist by statute, but need to be established by the lease contract: Does a standard for such regulations exist (and what is its content)? Please give examples of typical regulations.

FBiH/RS: As we already mentioned the Law on Lease of Business Buildings and Premises is the law that was adopted 30 years ago. Therefore it does not contain any precise provisions regarding energy efficiency. Energy efficiency matters are still in the process of being introduced into Bosnia and Herzegovina’s legal system. Therefore the standard for such regulations does not exist. However, as stated above, the parties may contractually agree to establish the right of reimbursement for the improvement of energy efficiency in the particular building or premises.

e. Which other obligations regarding sustainability (building materials, energy efficiency, waste management etc.) exist? If they need to be imposed by the lease agreement: does a standard for such regulations exist (and what is its content)? Please give examples of typical regulations.

FBiH: There is a new law on building materials which was adopted in 2010. As stated above the competent Ministry recently issued the several rulebooks with regards to energy efficiency. However those regulations do not prescribe any obligations on lease contracts, except that every new object and every existing object which is a subject to sale or lease must have an energy certificate.

RS: Please refer to answer 1.c.

3. Allocation of costs; incentives to improve sustainability of buildings or its use.

FBiH/RS: The best way to arrange the allocation of costs is to agree upon such costs before the execution of the lease contract. It could be done with an introducing paragraph in the lease contract which will cover the question of allocation of costs and any future changes with regards to these costs.