The EPC in real estate transactions of residential buildings
Blog
10 July 2024
What is the importance of the EPC?
An important aspect of buying, selling, or renting a residential property is the energy efficiency of the building. The energy performance certificate (EPC) plays a crucial role by providing potential buyers or tenants with insight into the energy efficiency of a property.
An EPC indicates how energy-efficient the building is through an energy label, ranging from A (very energy-efficient) to G (very energy-inefficient). The label is based on the amount of energy theoretically required for heating, hot water, ventilation, and cooling of the building.
A good EPC can increase the value and rental potential of a property by highlighting future savings on energy costs. A less favorable EPC gives you (as a buyer or tenant) room for negotiation.
Mandatory for renting and selling
In the Flemish Region, it is mandatory to present an EPC when selling or renting out independent residential units. Sellers of declared uninhabitable units, houseboats, and mobile caravans do not have this obligation. Buildings that will be completely demolished are also exempt, provided a demolition permit has been granted.
Am I required to renovate my home for a better EPC?
The EPC is also an important tool for the legal renovation obligation. All residential buildings purchased from 2023 onwards with a label E or F must be renovated to label D or better within 5 years of purchase.
Given the climate goals, this minimum level will only increase in the coming years. Therefore, a (good) EPC is very important and decisive for potential buyers and tenants.
Validity
The EPC is generally valid for 10 years. However, for notarial transfers, an EPC is required that is not older than 2019.
Penalties and consequences of an invalid EPC
The seller risks administrative fines if no EPC is provided. The sale may also be delayed because the EPC is a mandatory document for the deed of sale. The buyer can therefore take legal action. It is essential to present a valid EPC before offering a property for sale or rent.
Due to climate goals, it is necessary to improve the energy performance of buildings. It is expected that the government will continue to tighten the requirements for the energy performance of buildings. In short, the EPC will become increasingly decisive in your real estate transactions.
I have a problem with the EPC of my property sale or rental
Do you want to sell or rent your property, but have questions about the validity of the EPC? Or are you negotiating to buy or rent a building but think the seller/landlord does not have a valid EPC? Do you need legal advice? Whatever your question or problem, our experts at DGDM closely follow legal practice and are happy to assist you with tailored advice.
