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Written by rosalind renshaw

Energy Performance Certificates are to be retained. However, they will not be allowed to get in the way of first-day marketing.

The duty will be on the seller to ensure that an EPC has been commissioned before marketing of the property commences, where no EPC is already available.

The interpretation of ‘commissioned’ is when a Domestic Energy Assessor has been instructed, and the EPC has either been paid for, or the seller has given a clear undertaking to pay.

In addition, there is a new duty on the agent to be satisfied that an EPC has been commissioned. Both seller and agent must “make reasonable efforts to secure an EPC within 28 days”.

It is understood that where an EPC is available at the start of marketing, it will need to be shown in the property particulars. Otherwise, it would have to be attached to the particulars when it does become available.

The new obligations have been laid before Parliament in the form of the Energy Performance of Buildings (Certificates and Inspection) (England and Wales) (Amendment) Regulations 2010.

Yesterday, housing minister Grant Shapps said he hoped that sellers would order an EPC when they instructed an agent. “However, what I want is for us to be pragmatic. I’m not going to say that you can’t stick your property on the internet or put a sale sign outside until you have it.

“These things come through in two or three days anyway, so you can just start marketing it straight away, and then add the EPC when you get it.”

Comments

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    Rob Hailstone;
    You are probably correct on Sales. But, on my understsnding, with Rentals the EPC must be in place before marketing?

    • 21 May 2010 17:05 PM
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    If anyone disagrees with my summary below please speak up!

    Before a property is put on the market, the seller must secure that an Energy Performance Certificate is commissioned for the property. This is when no such EPC is already available.

    Before marketing the property, a person acting on behalf of the seller must be satisfied that an EPC has been commissioned for the property.

    The seller and a person acting on behalf of the seller must use all reasonable efforts to secure that a valid EPC is obtained for the property before the end of a period of 28 days starting with the day on which the property was first put on the market.

    An EPC is commissioned when a request is made-

    • Which is properly addressed to an Energy Assessor who is accredited to produce EPCs for the category of building in question and

    • Which is in such form, contains all such information and is accompanied by such payment or undertaking to make such payment as is usually necessary to obtain a certificate.

    There is a duty on persons providing written particulars of a building to include with those particulars either an asset rating of the building or an EPC. The duty arises where a residential property is to be sold; and the duty only arises once a valid EPC has been obtained.

    Enforcement authorities are now enabled to:

    • Enforce these duties,

    • To give a penalty charge notice for breach of any of the duties

    The validity period of EPCs for sales of residential properties is now 10 years.

    Rob Hailstone
    May 2010

    This is not a comprehensive explanation please see:

    The Home Information Pack Suspension Order 2010 ((No. 1455)
    The Energy Performance of Buildings (Certificates and Inspections) (England and Wales) (Amendment) Regulations (No. 1456)
    The Explanatory Memorandum for the above issued by the DCLG in May 2010

    • 21 May 2010 12:35 PM
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    Industry Observer: I agree.
    Chris Smiles & KC:
    EPC's are an EU Directive and must be implemented by our government - no discretion. It is just HOW they are implemented

    • 21 May 2010 11:42 AM
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    EPC's on their way out! get real, they are a potential cash cow and everyone knows it. There will be a "green tax" on buildings like a car road tax ie the more efficient your building the less you pay. THis will be perceived as a positive tax as it will be viewed at encouraging landlords to invest in their buildings to reduce energy waste. WIN WIN but what is more likely to happen is that tenants will get hit with the requirement to improve a building...govt gets more tax and the economy stimulated for builders to retro fit insulation, only the landlord and tenant feel the pinch.
    EPC's are here to stay...

    • 21 May 2010 11:22 AM
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    Well, there you have it, HIPs have gone and EPCs are on the way out. If there is no reason to get an EPC who will bother spending the money? Add another couple of thousand to the jobless total because EPCs are going to peter out.

    • 21 May 2010 09:53 AM
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    Common sense indeed if a level playing field and same new relaxed rules apply to lettings where the rules have always been very clear and very strict - no EPC available to hand to a prospective tenant, no marketing AT ALL in any wway, shape or form. Presumably the same revised common sense rules will apply to both sectors. Mind watch for Landlords claiming they'd instructed on a gas safety record next time there is an incident!!

    • 21 May 2010 09:18 AM
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    We have been pestering old clients for commercial EPCs since they came in, but what do we do if they won't send one? A third of our list just going to disappear. People who are distresed sellers just cannot and will not afford these things!

    • 21 May 2010 09:02 AM
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    Blimey, common sense.

    • 21 May 2010 07:12 AM
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