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Property News NI: Property Seller Beware

Most people selling their home will be aware that they require an Energy Performance Certificate, which should be available to possible purchasers to evaluate the efficiency of the home. The regulations which are routed in Europe have also been extended to cover rental property, so a landlord renting out a property is required to provide an EPC.

The Certificates rate homes on a scale of A to G and are now considered by many as a purely money making exercise for the Stormont Executive, for there is no suggestion of prohibiting the use of houses which exhibit low standards or that tenants should not rent out property based on the EPC. In fact there is no evidence to date which suggests house sales or property rentals have not gone ahead based on the content of the Energy Performance Certificate. 

The responsibility for enforcing the new regulations in Northern Ireland lies with the Department of Finance and Personnel which indicated that there would be 'no grace period' and that action would be taken to enforce the regulations from day one, with offending agents prosecuted. However, it is clear that a period of grace, was allowed for and that the department now intends to conduct a series of spot checks at properties being marketed for sale or rent.

Offenders found to be selling or renting a property without an EPC face fines of up to £1,000 according to one source, although it is also widely reported that the penalty for not producing an EPC is £200 for each breach of the regulations. 

The Department of Personnel & Finance appear confused in who they are pursuing, their view in 2008 several months after the launch of the EPC was:

'Any new legislative requirement takes some time to achieve full compliance. The Department is working to encourage compliance by ensuring that property professionals (including estate agents and solicitors) are made aware of the requirements relating to EPCs'

 

 

 

The Department of Finance and Personnel are eager to share with us the numbers of estate agents they have spoken to, visited, the number of conferences arranged at public expense, but when we came into contact with a document being circulated to estate agents, it became clear to us that, there may be no onus or liability on the agent, solicitor or professional at all. It was only after disclosing to the DFP that we had sight of such a document that the DFP stated categorically:

'the Regulations themselves do not impose any legal duty on property professionals whatsoever..' '..the requirement to obtain and make available a valid EPC, this duty is imposed solely on the 'relevant person' who is the seller (and from 30th December, the prospective landlord as well).'

The concern with the conduct of the DPF in their administration of this policy, is that, if there is no fine to be levied at estate agents, solicitors and other property professionals, why has the department spent considerable amounts of money in contacting them, visiting them and arranging conferences for them, surely it would have been wiser to market the requirements of the EPC to the public or for the department to have drafted legislation placing a specific duty on the agent, punishable by a fine.

A Belfast Telegraph article on the subject of EPCs indicated that the DFP had gone to great lengths advising agents and even sending them letters indicating they were about to conduct spot checks but as they are not the persons subject to the fine, under the regulations, it is unacceptable that they now threaten a fine on persons they have failed to communicate with, you the seller, and/or you the landlord! 

The legislative requirement is for an EPC to be made available 'at the earliest opportunity' and in our discussion with the DPF it would appear that before you have people viewing your property you must possess an EPC. Remember that whilst estate agents probably have a duty of care to you as their client, the fine belongs to you, should they fail to advise you or should you fail to act.

Last Updated: 26th March 2009

 

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