Baffling guidance has been given by Communities and Local Government to estate agents in response to an apparently simple question from the National Association of Estate Agents.
The guidance says that agents marketing properties without Home Information Packs and which will require Energy Performance Certificates from October 1, will be able to continue marketing a property without an EPC – but also says that agents will have to wait 14 days to market it if an EPC on order has not arrived.
The guidance also contradicts itself by saying that an EPC must be ordered 14 days before property details can be circulated, the property is viewed and a contract is agreed.
Yet at the same time it stipulates that some sellers or landlords might prefer to wait until interest is shown in the property before ordering an EPC – although how there could be much interest in the absence of property particulars is not a marketing concept familiar to most agents.
The NAEA’s question was: “I am marketing a property which doesn't require a Home Information Pack. Do I need to obtain a Energy Performance Certificate?”
The convoluted reply reads as follows:
“All properties sold after 1 October 2008 will require an EPC. You should speak to your client about when they would like you to order an EPC.
You should encourage your clients to take all reasonable steps. At the latest an EPC should be ordered at least 14 days before any of these events take place:
(i) Written information is provided about the property.
(ii) The property is viewed.
(iii) A contract to sell or rent the property is entered into.
Some clients may prefer to take a cautious approach and order an EPC straight away.
Other clients may prefer to wait until interest is shown in their property before ordering an EPC, even though this approach may delay potential buyers finding out more about the property, or viewing the property, for up to 14 days.
NOTE:
• Once an EPC is received (i)-(iii) can take place- there is no need to wait the full 14 days.
• Properties without EPCs can continue to be marketed after 1 October 2008 , provided that an EPC is obtained before (i)-(iii) occur, or an EPC is ordered at least 14 days before (i)-(iii) occur.
Remember your client may be liable to a penalty of £200 or more if an EPC isn't ordered at the right time.”
Lost in translation: EPC guidance to agents proves baffling
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Comments
Idont think the government has made this clear,the fine is £200.00 per day!
I am completing on my late fathers house on friday 3rd Oct and have today received a letter from the estate agent telling me to get in touch re EPC which will cost me £88.13 or my buyer will be liable fir a £200 fine. Is this true, and if I agree, how can anything be done by Friday anyway.
so, i've got letters to send, phonecalls to make...do i press the October 1st EPC Button! confused...
OK, so who voted them in!
Sorry me Lud I can't understand it, nor can my Clients - ignorance of the law is no excuse, so I've had to say get an EPC to avoid a possible fine and cover myself
Just another classic example of the mess this Government is in. I encourage you to join the protest as reported on the pages of this online magazine very recently. Go to www.whatgov.co.uk and make your comments in the forum pages and vote for your least favourite minister, I know hard to choose. Please buy a badge join in the day of protest 05.11.08 yes that's right Firework Night.
This is the same government that is today encouraging Lloyds TSB to take over HBOS....would you trust them?...they are very fortunate that the credit crunch has masked the fact that property trans (and prices) were in free fall from the middle of last year when HIP`s were introduced and BEFORE the credit cruch really took hold.
We wrongly assume that our elected representatives (particularly the cabinet)are competent in their jobs and have the necessary intelligence to carry out their duties!!!!!
What do you expect from Ministers and Civil Servants who would not last five minutes in the real world. The latest statement regarding HIP's and EPC's is as clear as mud. The NAEA and RICS should forcefully demand clear instructions from C&LG before anyone gets prosecuted after the 1st October. At present why should we be advising our clients to spend our their hard earned money paying for HIP's or EPC's which may not be needed.
After 30yrs In The Industry I Suddenly Feel Very Inteligent
The whole thing is just ridiculous.We have written to all of our vendors and landlords and have already lost some instructions as other agents are saying an EPC is not needed.Who is policing this legislation?
Well here we go again another balls up!!!- I am looking at it from the point of view that using EPC legislation will get rid of unmotivated vendors who think it is OK to languish on my books without spending their own money. Roll on a change of government when we can "blow" all this stupidity out of the water.
I am at a complete loss to understand any part of the CLG 'instructions'over HIPs/EPCs at the end of the month. If we thought their help to agents origionally was rubbish, this latest turn of events is nothing more than governmental chaos and ineptitude. All I can say is 'join my No 10 petition', I know it's not about the present debacle - just the next instalment at the end of the year, but they may get the picture.
http://petitions.number10.gov.uk:80/Homeinfopacks/
Trevor Kent PPNAEA
Gerrards Cross
I wouldn't worry about EPC's. I can't believe that this newsletter contains no comments about the test case taking place in the High Court now, that could see them banned anyway. 1 house has had 4 different ratings from 4 different inspectors, the argument is that they are innacurate in many cases, therefore agents are in breach of misdescription legislation.
Why did I get a job in Estate Agency? I could have been employed in a Govenment department and not cared a damm about anyone else and then end up with an index linked pension! Glory be.
We have been told that the EPC's have now been put back until the end of January 2009? Is this still the case or not? We have written to all our landlords and requested that they have an EPC done at their earliest opportunity.
Thank you
How ridiculous. The business about 14 days is completely unworkable. Surely we should just encourage our clients to get an EPC and tell them that they won't be able to achieve a sale without one.The problem will then slowly disappear over time without any big deal.
This is so typical of a Government whom doesn't understand the housing market and the general marketing of a property. We have read it that as long as an EPC is available prior to exchange of contracts then happy days, it will exchnage contracts. Although we have to beg the question that if the pre-hip property is still on the market for sale 12 months after HIPS came into effect then surely it probably won't sell in the near future unless the vendor reduces the price drastically. They may as well save their money and wait until a buyer is close to exchnage on contracts.
Once again ministerial bodies are bound up by their own red tape.
!!!!