How Green are your Premises?

• Places of Worship
• Temporary buildings
• Any non-dwelling - standalone buildings under 50m2
• Industrial sites, workshops and non-residential agricultural buildings with low energy demand
• Buildings due to be demolished (subject to conditions – see Q&A)

EPC requirements for commercial properties marketed before 1st October 2008

Any property that has been on the market before 1st October 2008 requires an EPC when a contract for sale or let is entered into (at no cost to the buyer/tenant).

Reasonable efforts should be made to obtain the EPC before the contract is entered into. If it is not available before, then this should not delay the transaction.

If the property was on the market before 1st October 2008 and is still on the market after 4th January 2009, then the post 1st October 2009 requirements apply (see below).

EPC requirements for Commercial Properties marketed after 1st October 2008

Any property that has been on the market since 1st October 2008 requires an EPC to be provided at the earliest opportunity before a contract to sell or let is entered into (at no cost to the buyer/tenant).

In any event, the EPC should be sent when a prospective purchaser either views or requests written information about the property.

The seller/landlord should order an EPC in good time, and at least 14 days before it is required, to avoid a penalty charge. It would be advisable to have an EPC ready before the property is on the market.

Q&A

Who is responsible for providing the EPC?

The seller or landlord is responsible for making the EPC available and is liable to a penalty charge if one is not made available. The agent is NOT responsible for producing an EPC.

What is ‘written information’?

Written information is any paper or electronic information about the property that is provided upon request from a potential buyer or tenant. This does not include advertising the property, such as For Sale/Let signs, windows of estate agents or a thumbnail on the Internet. It only applies upon further request, including walking into the estate agents or selecting a website link for more information about a specific property.

What does ‘make an EPC available’ mean?

Either making a prospective buyer/tenant aware that it is available, it is ready to be shown or providing a copy, free of charge, when requested.

What happens if the EPC has been ordered but is yet to arrive?

If it has be ordered at least 14 days before it was required, then as long as all reasonable efforts have been made to obtain the EPC in time, the sale or rental process can continue.

If it has been ordered less than 14 days before it was required, then you should not organise viewings, make provisions of written information or enter into contract with prospective buyers or tenants. If this is not complied with, the seller or landlord shall be liable to a penalty charge.

What is the penalty charge?

12.5 percent of the rateable value of the building or a default penalty of £750 where the formula cannot be applied. The maximum penalty is £5000 and the minimum is £500.

Is an EPC necessary if the tenant is in occupation?

If the tenant currently in occupation was there before 1st October 2008, an EPC is not required until a new tenant comes into occupation.

How long is an EPC valid for?

From the last issued EPC, it will be valid for 10 years.

What are the conditions to sell or rent a property that is to be demolished and does not require an EPC?

The property must be sold with vacant possession and suitable for demolition or redevelopment. The seller or landlord must have reasonable grounds to believe that the buyer or tenant intends to demolish the property, such as evidence of an application for planning permission.

For specialist advice on any aspect of commercial or residential property law, please contact Richard Gordon (rkg@silvermansherliker.co.uk) or Scot Tsang (sskt@silvermansherliker.co.uk) on +44 (0)20 7749 2700.