This note is not intended to provide a comprehensive summary of the changes taking effect on the 6th April 2012 but simply aims to answer the most popular questions.
When does the change come into force?
The new Regulations will come into force on 6 April 2012 and will apply to buildings put on the market on or after that date. There will be no requirement to change the written particulars for buildings already on the market before this date.
Are buildings on the market before 6 April 2012 required to comply with the new Regulations?
Provided that the building has been continuously marketed since before the common commencement date of 6 April 2012 and there is no break in the marketing, then the new Regulations will not apply to buildings currently on the market.
Can anyone register to have access to the Property Agents EPC Retrieval Service?
No, this service has been set up at the request of property agents so that they are able to meet the obligation to attach the EPC where written particulars are given to prospective buyers or tenants. Only property agents who will need to comply with the regulations will be able to register to use this service.
Do the regulations apply to all property adverts?
No. Only the more detailed descriptions (referred to as written particulars) produced for potential buyers or tenants as defined by the Regulations. In essence this is where an agent provides written particulars to a person (i.e. a specific individual) who may be interested in buying or renting the building.
Will auction catalogues be captured by the new requirements?
If the details in the auction catalogue meet the definition of written particulars, as defined in the Regulations, then an EPC will need to be included with the details of those properties. The option of including an asset rating only will no longer apply.
What does ’attached’ mean?
If property or letting agents wish to attach the first page of the EPC by including it in the brochure itself this is acceptable. If property or letting agents wish to attach the first page by fastening, affixing or joining the EPC to the written particulars this is also acceptable.
In brochures and auction catalogues, must a copy of the first page of the EPC be included on the same page as the written particulars?
There is no requirement for the written particulars and the EPC relating to that building to be on the same page. It must, however, be clear from the brochure or auction catalogue which written particulars the EPC refers to and that the EPC is legible. In these circumstances the EPC and written particulars do not have to be included on the same page.
Where the address of the building is not included in the written particulars can the address be omitted from the EPC?
The address of the non residential building can be concealed from the EPC if the address has also been omitted from the written particulars. Where there is a confidentiality issue surrounding a commercial property transaction, the EPC Register Operator has provided a technical solution to enable the EPC to be retrieved from the EPC Register and attached to on-line written particulars with the address removed. The Regulations only allow the Register Operator to remove the address from a commercial EPC. This enhanced service has been provided at the request of property agents. More detailed information for property agents is available on request at: epc.enquiry@communities.gsi.gov.uk
How can a property or letting agent be sure that the relevant person has commissioned an EPC?
Agents will have to satisfy themselves that an EPC is either available or has been commissioned before they start marketing on behalf of the seller or landlord. Trading Standards Officers can ask for evidence of this.
It is unreasonable to reduce the period in which the EPC is expected to be obtained from 28 days to seven days
Evidence shows that most EPCs are obtained within three days so this should not be a challenge in most cases. A further 21 days is allowed if after using all reasonable efforts the EPC cannot be obtained within seven days.
What happens after 28 days if the EPC is still unavailable?
If the building is still on the market after 28 days, Trading Standards Officers may choose to serve a penalty notice.
What is the penalty for a breach?
For residential buildings the penalty is £200. For non residential buildings the penalty is a sum equivalent to 12.5% of the rateable value of the building, subject to a minimum of £500 and a maximum of £5,000.
Who will be liable for the penalty charge?
If the relevant person or a person acting on their behalf has not obtained an EPC after the 28 day period they may be liable for a penalty charge.
To read more and view the original report, click here.
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DCLG: See latest EPC “Summary of Changes” and “Answers to Popular Questions” on the new 6th April 2012 legislation.
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