|
Energy Performance Certificates contain summary information about the
potential energy performance of a building. From 1 October they have been
required on the construction, sale or letting of all commercial buildings. The
only exceptions are now for stand-alone buildings of less than 50 sq m (plus
places of worship, temporary buildings and buildings to be demolished).
Note there is a transitional relief which was due to expire on 1 October
but has now been extended until 4 January 2009. Under the transitional
arrangements, the normal rule that an EPC must be produced to a prospective
buyer or T does not apply; instead it can be produced as soon as practicable
after exchange of contracts to the contracting buyer or T. However, if the
property remains on the market after 4 January, then an EPC will be required
immediately (ie so the building can be shown to prospective buyers and Ts).
Other points to note:
- EPCs will generally be valid for ten years;
- not all sales and lettings are affected. Government guidance says that
no EPC is needed in relation to surrenders of leases, or sales under
compulsory purchase schemes, or lease renewals or extensions, as
well as the sale of shares in a company that owns property; and
- if the prospective seller or L believes (on reasonable grounds) that a
prospective buyer or T does not have the means to proceed, or has a
genuine interest in concluding a deal, then there is no obligation to
provide an EPC.
Note there is a defence available if there is a failure to provide an EPC when
required, provided it can be shown that the seller or L made a request for an
EPC at least 14 days before the relevant time, and then made all reasonable
efforts and enquiries to obtain it. Given the current shortage of energy
assessors, this may prove to be important. See note in [2008] 218 Property
Law Journal 2 .© Practical Lawyer
|
|
November 2008 |