Concession on energy certificates ‘will help keep property deals flowing’
February 21st, 2008
A government concession that will allow commercial property deals to go ahead in the event of a shortage of energy assessors has been welcomed by law firm DWF.
Legislation which is being phased in from 6 April this year will require owners of all commercial property to provide an Energy Performance Certificate (EPC) on the construction, sale or rent of the property. Failure to comply could lead to a penalty charge of up to £5,000.
However Andy Green, Real Estate partner with DWF says: “There has been concern that a lack of commercial energy assessors could cause significant delays to property transactions.
Now the government has issued guidance stating that a seller or landlord will not be liable to a penalty charge notice if they have commissioned an EPC at least 14 days before it was required and, despite all reasonable efforts, a valid certificate has not been obtained.
The EPC should still be made available to the prospective buyer or tenant as soon as it is produced.”
There is also an exception for situations where a prospective tenant is seeking to rent the building due to an emergency relocation.
If the landlord does not have sufficient time to obtain an EPC, he will not be liable to a penalty charge notice provided that he gives a valid certificate to the tenant as soon as possible.
Andy Green adds: “It is good news that sellers and landlords will not be penalised for something which is beyond their control. These concessions will allow commercial property transactions to go ahead without unnecessary delay.”
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