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Energy Performance Certificate for Real Estate Sales – What You Should Know
Energy Performance Certificate for Real Estate Sales – What You Should Know
An energy performance certificate is now legally required when selling or renting out real estate. If you as an owner Sell property want, you should find out in advance whether an energy performance certificate is available so that the sale of the apartment or house does not ultimately fail because of it. But what exactly lies behind this document and why is it so important? In this article, you will learn everything you need to know about the energy certificate when selling real estate. We explain which legal bases must be observed, how the energy certificate is created, when you need it, where you can get it, which exceptions exist, what costs you can expect, and what advantages it offers property owners. Read on to get comprehensive information and successfully integrate the energy certificate into the sale of your property.
The importance of the energy performance certificate when selling and renting out a property
The energy performance certificate – sometimes also called an energy pass – has gained more and more importance in recent years, especially when selling real estate. But it is also indispensable when renting. The document provides important information about the energy efficiency of a property and gives potential buyers and prospective tenants insight into the energetic condition of the property. When selling a house or apartment, interested buyers should get a more detailed impression of the monthly energy costs they will face. In this way, an optimal Comparison of property offers This prevents potential buyers from being surprised by potentially huge energy costs and enables them to be aware of them. Thus, the certificate allows for a better assessment of future energy costs and supports the decision-making process.
A good energy performance certificate can increase the value of a property and enhance its market appeal. In addition, it contributes to transparency and makes it easier to compare different properties. In the course of the energy transition and the growing importance of sustainability, the energy performance certificate has thus become a crucial criterion in the sale and renting of real estate.
Since submitting an energy performance certificate is legally required, property owners should address the issue early and inform themselves about the various aspects of the certificate. This includes choosing the right type of certificate, hiring a qualified energy consultant, and knowing one's own information and submission obligations.
Furthermore, this article is also of interest to potential buyers and tenants who want to get an overview of the importance of the energy certificate. This allows them to better assess what role the document plays in the search for a suitable property and what information they can derive from it.
Energy performance certificate simply explained
The energy performance certificate is like a personal profile for your residential building and gives you an insight into the energy efficiency of your home. In addition to important information on the building data, the document also contains useful tips, how you can modernize your home cost-effectively. Let's take a look together at what information is contained in the certificate.
To assess the energy condition of buildings, the Building Energy Act (GEG) in many cases requires the creation of an energy performance certificate. This gives you general information about the house, the heating fuels used (e.g., gas, wood pellets, or electricity), and the energy performance data of the building. Similar to electrical appliances, the energy performance certificate for residential buildings displays an energy efficiency class ranging from A+ to H.
If it is a purely residential building action is taken, the energy certificate is issued for the entire building and not for an individual apartment. For buildings that contain both apartments and rooms for other purposes, the energy certificate applies solely to the residential area. The certificate must comply with the requirements of the applicable GEG (Buildings Energy Act). In addition, the person issuing the certificate must state their name, address, professional title, and the date of issue, and sign the certificate either personally or with a digital signature. A color printout is not required.
However, building energy certificates have a limited period of validity, after which they must be renewed. The period of validity is ten years after they have been issued. After this period has expired, the energy performance certificate must be renewed in order to keep the information up to date.
An exception applies to Buildings that are being renovated or modernized were made. You only need to have the certificate reissued if precise calculations of the energy demand are made during a renovation. Without these calculations, the certificate remains valid. In simple terms, the law (GEG, Section 80, Paragraph 2) states: If you make changes to your building that affect the energy level, you must have a new energy demand certificate issued. This refers to the new energy properties of the modified building. This requires calculations for the entire building.
Basically, renovated and modernized buildings today are in better shape regarding energy efficiency than at the time the original energy performance certificate was issued. This has a positive effect on the property's value and heating costs.
It is important for property owners to keep track of the validity period of their energy certificate and take care of a renewal in good time. An expired energy performance certificate can not only lead to legal consequences, but also deter potential buyers or tenants. Overall, the validity period and renewal of energy certificates are an important aspect of building efficiency and transparency. By regularly updating the energy certificates, owners can ensure that they comply with current standards. Potential interested parties receive comprehensive information on the energy efficiency of their building, including any modernization recommendations.
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Energy performance certificate based on energy demand vs. energy performance certificate based on energy consumption: What is the difference?
Answer:
In Germany, there are two types of energy performance certificates: the demand-based certificate and the consumption-based certificate. Both types of certificates serve to inform owners, buyers, and tenants about the energetic condition of a property.
Energy performance certificate (demand-based)
Answer:
The energy requirement certificate is a document that energy performance of a building based on energy demand calculated. Factors such as the building envelope, heating system, ventilation systems, thermal insulation, domestic hot water supply, and other technical aspects are taken into account. The calculation is based on a theoretical analysis carried out by an energy consultant or expert. The energy performance certificate should provide more detailed information on the energy-related condition of the building.
An energy demand certificate is mandatory in certain cases, for example for new buildings or for buildings with fewer than five residential units and a construction year prior to 1978. An energy demand certificate is also often required if a property has been renovated or modernized.
Energy performance certificate (consumption-based)
Answer:
The consumption-based certificate, on the other hand, is based on the actual energy consumption of a building. It is determined using the Consumption data from the last three years created using the heating cost statements. The consumption-based energy certificate thus provides an overview of the residents' average energy consumption. However, it should be noted that actual consumption also depends on individual habits. The consumption-based certificate is sufficient for most buildings that do not fall under the mandatory demand-based certificate requirement. It is generally easier and more cost-effective to produce than the demand-based energy certificate.
In summary, the demand-based energy certificate and the consumption-based energy certificate are two different types of energy performance certificates that use different approaches to evaluate a building's energy efficiency. While the demand-based certificate is based on a theoretical analysis, the consumption-based certificate shows the actual energy consumption of the occupants. However, both types of certificates are important to ensure transparency and comprehensibility regarding the energy quality of real estate.
Energy certificate for non-residential buildings
Answer:
An energy performance certificate for non-residential buildings/commercial real estate may only be issued by university graduates in the fields of architecture, interior architecture, structural engineering, civil engineering, and physics. The difference here compared to the energy performance certificate for residential real estate is that one can choose between a demand-based and a consumption-based energy performance certificate.
Mixed-use buildings
Answer:
are located in a building Commercial/office spaces and one or more apartments, two or more separate energy performance certificates must generally be applied for. Exceptions may apply if rooms within the living space are used commercially or if one transitions seamlessly into the other.
Energy performance certificate for new buildings
Answer:
As a rule, the architect and/or building owner ensures that the new building has a valid energy performance certificate upon completion. As the owner, you must ensure that this is handed over at the latest when the new building is transferred so that nothing stands in the way of a quick house sale. It is important to note that data collection should only take place after the construction work is completed to ensure that the determined values correspond to the actual condition of the building comply.
Exemptions from the energy performance certificate requirement
The obligation to provide an energy performance certificate when selling and renting affects many residential and non-residential buildings and is based on the Building Energy Act (GEG). However, Section 2 GEG contains a few criteria that exempt certain buildings from this obligation. The following buildings do not require an energy performance certificate:
- Buildings without heating or cooling through energy use
- Buildings with an energetic usable floor area of less than 50 square meters
- Listed buildings under state law
- Residential buildings that are used less than four months a year
- Residential buildings with limited annual use, whose energy consumption is less than 25% of annual consumption
- Craft, agricultural, commercial, and industrial buildings with specific temperature and usage requirements
- Operational buildings that must be kept open due to their use
- Buildings for animal housing and breeding
- Greenhouses and plant cultivation rooms
- Underground structures
- Air domes and tents
- Repeatedly assemblable and disassemblable buildings as well as provisional structures with a service life of up to two years
- Building for worship or religious purposes
In these cases, there is no obligation to present an energy certificate.
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Energy Saving Ordinance (EnEV): The basis for energy performance certificates
The legal basis and obligations regarding energy performance certificates are laid down in the Energy Saving Ordinance (EnEV). The EnEV is a regulation that governs requirements for the energy efficiency of buildings. Among other things, it specifies which buildings require an energy performance certificate, what information must be included in such a certificate, and which procedures are permissible for issuing energy performance certificates. The EnEV is therefore the fundamental legal basis for energy performance certificates in Germany.
Obligation to present the energy certificate upon sale and rental
In accordance with the Energy Saving Ordinance (EnEV), building owners are required to present an energy certificate when selling or renting out property. This must be presented to the prospective buyer or tenant no later than the viewing. Since 2014, important information regarding energy consumption must be provided when selling or renting out residential buildings. This information is found in the energy certificate:
- What type of energy certificate is it – energy consumption or energy demand certificate?
- Data on energy demand or energy consumption per square meter
- Type of heating
- Year of construction
- Energy efficiency class (applies to energy performance certificates from May 1, 2014 onwards). For older certificates, this can be converted, but it is not strictly necessary.
For Real estate listings In newspapers and on paid websites, certain mandatory information from the energy performance certificate applies: year of construction of the building, energy efficiency class, energy source for the heating supply, information on final energy demand or final energy consumption, as well as the type of energy performance certificate. When viewing a property, real estate agents or sellers must show the energy performance certificate even without being asked. This can be done, for example, by posting it visibly during the viewing or by mail or email. The entire document, including recommendations for modernization, must be shown. If the owner or real estate agent presents an energy performance certificate issued after May 1, 2014 (EnEV 2014), the information on energy demand, energy consumption, and energy source is omitted. Instead, the advertisement lists the efficiency classes A+ (efficiency house 40) to H (not modernized).
If you own a property, already have an energy certificate, and want to sell or rent it out, check if the ID card is still valid. Many ID cards are older than ten years and therefore invalid.
To note Check before preparing the purchase agreement whether an energy certificate is available and has been handed over to the prospective buyer. Even if the buyer and seller waive its presentation, fewer and fewer notaries are willing to notarize the purchase agreement without an energy certificate. This is because the obligation to present it is a legal requirement. Once the purchase agreement has been concluded, the seller gives the energy certificate to the buyer. If the seller fails to do so, heavy penalties have been threatened since May 15, 2015.
The aim of the legal requirements is to increase transparency regarding the energy efficiency of buildings and to enable consumers to make an informed decision.
Regulation for non-residential buildings / commercial properties: Commercial properties with a size of 500 square meters or more, as well as public spaces with a size of 250 square meters or more, are subject to an additional regulation if there is a high volume of public or customer traffic. In this case, the existing, valid energy certificate must be posted in a location where it is easily visible. If the building is vacated or closed, visible posting of the energy certificate is not required.
Sanctions for non-compliance
If the obligations to present an energy certificate upon sale or rental are not met, sanctions may apply. As a rule, a fine is imposed, the amount of which can vary depending on the severity of the violation and the type of building. The amount of the fines is stipulated in the Energy Saving Ordinance (EnEV) and can be up to 15,000 EUR.
Random checks of energy performance certificates
Since May 2014, energy performance certificates have had a registration number, which is applied for by the issuers from the German Institute for Building Technology (DIBt).
The Registration number enables the competent authorities to issue energy performance certificates randomly to control and thus Quality to improve the documents. Investigations, including those by consumer protection centers, have unfortunately revealed some quality defects in the past. Therefore, a certain number of new energy performance certificates are to be checked. The authorities select these random samples based on the registration numbers.
Exhibitors must keep copies of the energy performance certificates they issue for two years and make them available to the inspection authorities upon request. Data protection regulations must be observed in the process. The verification of the certificates can be carried out in various ways, even up to a complete review of the input data and the results. However, if an on-site inspection of the building should be necessary, you as the building owner must first consent, but you are not obligated to do so.
What needs to be considered when creating a new energy performance certificate?
Answer:
To obtain a valid energy certificate, a qualified energy consultant should be hired. This expert analyzes the building and collects all necessary data to create the energy certificate. Make sure that the energy consultant has the necessary qualification and experience to issue a correct energy certificate. The costs for an energy certificate vary depending on the type of certificate and the scope of the required analysis. An energy consumption certificate is usually cheaper and can be created for under 100 euros. An energy demand certificate, on the other hand, requires a more extensive examination and can cost several hundred euros. The time it takes to create an energy certificate also depends on the type of certificate and the scope of the analysis. As a rule, however, you should expect a processing time of about two to four weeks.
Who is authorized to issue an energy performance certificate?
Answer:
Who is allowed to issue an energy certificate for existing residential properties due to a house or apartment sale is regulated by the Energy Saving Ordinance (EnEV). For new buildings and residential property that has been renovated or remodeled to the extent that a new energy efficiency and consequently different energy costs exist, the law currently provides no regulation for authorized issuers. As a rule, however, this is handled by the heating installer or „automatically“ arranged via the architect/builder. An authorization to issue is held by:
- Groups of persons who hold authorization from the respective federal state in accordance with building regulation laws that entitles them to sign structural design certificates in the fields of thermal insulation and energy conservation for building construction.
- Individuals with a successfully completed degree in architecture, structural engineering, civil engineering, or physics. Alternatively, university graduates from other technical and/or scientific fields whose educational focus relates to the aforementioned areas of study.
- University graduates with a degree in interior architecture.
- State-certified and qualified technicians in structural engineering, civil engineering, and building services engineering who can prove a specialization in „energy-efficient construction.“ If they have a different specialization or further training in „energy-efficient construction,“ they must have at least two years of professional experience in structural engineering.
- Craft masters whose primary professional activities relate to the construction trade, heating construction, and installations. Master chimney sweeps as well as such tradespeople who practice this trade on an independent basis without a master craftsman qualification are also authorized.
How much does an energy certificate cost
Answer:
The amount that the issuance of an energy performance certificate costs depends on the scope of data collection, which results from the building's use, building size, type of building, as well as the method of application and type of certificate. The following prices are purely indicative and represent only the average customary cost levels:
- Energy performance certificate for single-family houses: between 70 and 120 EUR
- Energy consumption certificate for multi-family houses: approx. 300 EUR
- Energy performance certificate for single-family houses including on-site inspection: between 400 and 500 EUR
- Energy performance certificate based on theoretical demand for apartment buildings including on-site inspection: flat rate of 400 EUR plus between 30 and 50 EUR per residential unit
- Apply for an energy performance certificate online: approximately 100 EUR
- Energy requirement certificate for condominiums: the costs are borne by the homeowners' association.
Understanding energy efficiency classes: What do they tell us?
Answer:
Since May 1, 2014, energy performance certificates have included a classification into energy efficiency classes. An efficiency class further up the alphabet and further to the left on the scale indicates that the energetic condition of the building is better. This is also reflected in the color scheme. Classification of energy efficiency classes according to EnEV:
- A+ applies to final energy up to 30 kWh/(m²a) – Passivhaus, KfW-40+ house
- A from 31 to 50 kWh/(m²a) – Buildings that at least meet the EnEV 2016 standard, e.g., KfW 50 houses
- B from 51 to 74 kWh/(m²a) – Buildings that comply with the standards of EnEV 2014
- C from 75 to 99 kWh/(m²a) – Building that complies at least with the Thermal Insulation Ordinance of 1995
- D from 100 to 129 kWh/(m²a)
- E from 130 to 159 kWh/(m²a) – Building that roughly meets the standard of the 2nd Thermal Insulation Ordinance of 1982
- F from 160 to 199 kWh/(m²a)
- G from 200 to 249 kWh/(m²a)
- H of 250 kWh/(m²a) and more – unrenovated older buildings
Source: EnEV 2014, Appendix 10
Should the EU plan actually be implemented, all residential buildings in Germany would be required by 2033 to achieve and maintain a maximum energy efficiency rating of class D.
Important note on older energy performance certificates
Answer:
Older energy certificates lack the classification into efficiency classes, and the scale was different before 2014, it reached up to 400 kWh/(m²a). From 2007 to 2009, a building with 200 kWh/(m²a) was considered an “energetically well-modernized single-family home.” For energy performance certificates issued up to April 2014, a house with 150 kWh/(m²a) was considered energetically well-renovated. Nowadays, a final energy demand of 70 to 100 kWh/(m²a) is required for this classification. Therefore, a comparison with newer IDs is difficult.
What can owners do if the energy rating is in the red zone?
Answer:
If the energy certificate's label is red, property owners might consider building energy consulting. It can be subsidized by up to 80 percent. It is advantageous to combine the creation of an energy certificate with an energy consultation that ultimately results in an individual renovation roadmap (iSFP). This consultation is subsidized by up to 80 percent. For every renovation measure resulting from the iSFP, owners receive an additional bonus of five percent of the costs.
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