Whether you wish to sell or let your property, in the vast majority of cases there is no getting around the energy performance certificate. This small document shows at a glance how energy-efficient a building is, and it is required by law. But which type of certificate do you need, how long is it valid, and which details already belong in the listing? We explain the most important rules of the Building Energy Act (Gebäudeenergiegesetz, GEG) clearly and concisely, so that you are on the safe side from the very outset when selling or letting.
What is the energy performance certificate, and what is its purpose?
The energy performance certificate is a standardised document that describes the energy characteristics of a building. It is intended to allow prospective buyers and tenants to make a rough comparison: how much energy is the house or flat likely to consume, which energy source heats the building, and into which energy efficiency class does it fall? In this way, an approximate idea of the heating costs to be expected can be formed even before the viewing.
The legal basis is the Building Energy Act (Gebäudeenergiegesetz, GEG). Under Section 79, the energy performance certificate serves solely to provide information and to enable buildings to be compared; it is therefore not a refurbishment survey, but it does give valuable initial pointers. An energy performance certificate is, as a rule, issued for the building as a whole; only in special cases, for instance where parts of a building are to be treated separately, may separate certificates be issued.
When is an energy performance certificate mandatory?
The obligation is governed by Section 80 of the Building Energy Act. It applies in particular in the following situations:
- On sale: Where a developed plot, a flat or part-ownership property is sold, a valid energy performance certificate is required.
- On letting, leasing or under a lease arrangement: Anyone newly letting or leasing out a flat or a building likewise needs an energy performance certificate.
- On new construction: Where a building is erected, an energy performance certificate must be issued upon completion. In this case a demand-based certificate is mandatory.
- On major refurbishment: Where extensive energy-related alterations are carried out on an existing building and recalculated for the building as a whole, a new energy performance certificate is likewise required.
It is important to know: anyone who lives in their own property and neither sells nor lets it generally does not need an energy performance certificate. The obligation arises only with marketing or a change of ownership. Where a valid energy performance certificate already exists for the building, no new one need be drawn up for the sale or letting.
Demand-based certificate or consumption-based certificate, what is the difference?
The Building Energy Act recognises two types of energy performance certificate, which are based on different foundations:
- The demand-based certificate (Section 81 GEG) is based on a calculated assessment of the building. An expert appraises the building fabric, insulation, windows and heating technology and from this determines the theoretical energy demand. The result is independent of the occupants' behaviour and is regarded as particularly meaningful.
- The consumption-based certificate (Section 82 GEG) draws on the energy actually measured as consumed over the preceding years. The heating cost statements for a continuous period of at least 36 months are used. As consumption depends heavily on user behaviour, this certificate generally turns out more favourable, but is less objective.
In many cases owners are free to choose between the two variants. There is, however, one important exception in which the law prescribes the demand-based certificate.
When a demand-based certificate is mandatory
Under Section 80 of the Building Energy Act, free choice does not always exist. A demand-based certificate is mandatory where all of the following conditions are met:
- it is a residential building with fewer than five dwellings,
- the building application was submitted before 1 November 1977, and
- the building does not meet the requirement level of the 1977 Thermal Insulation Ordinance (Wärmeschutzverordnung).
If the house already met this level on completion, or was brought up to it through later modernisation, the obligation to provide a demand-based certificate falls away; the free choice between a demand-based and a consumption-based certificate then applies once again. This rule typically affects smaller, older houses that have not yet been upgraded in energy terms. Which certificate is the right one for your property is best clarified in the specific case, and we will help you to assess that reliably.
Validity, presentation and handover
An energy performance certificate is valid for ten years under Section 79 of the Building Energy Act. Once this period has elapsed, a new one must be issued, provided that a triggering obligation continues to apply. Independently of this, it loses its validity where a new certificate becomes necessary in any case following extensive refurbishment.
The clear requirements for presentation and handover under Section 80 are important: the seller, the landlord or an instructed estate agent must present the energy performance certificate to prospective parties unprompted, at the latest at the viewing. A clearly visible display during the appointment is sufficient. If no viewing takes place, the certificate must be presented without delay, at the latest upon the prospective party's request. After the contract has been concluded, the energy performance certificate or a copy must be handed over to the buyer or tenant.
A special provision has applied since the most recent reform to the sale of residential buildings with no more than two dwellings: after the handover the buyer is to hold an informational advisory discussion regarding the energy performance certificate, provided this is offered free of charge as a separate service.
Mandatory details in the property listing and fines
Certain details from the energy performance certificate are required as early as when placing an advertisement in commercial media, provided that the certificate already exists at that point in time. For a residential building, Section 87 of the Building Energy Act requires the following mandatory details:
- the type of energy performance certificate, demand-based or consumption-based,
- the stated value of the final energy demand or final energy consumption,
- the main energy source of the heating system,
- the year of construction of the building, and
- the energy efficiency class.
These requirements should be taken seriously. Breaches of the energy performance certificate obligations are regarded as a regulatory offence. Under Section 108 of the Building Energy Act, missing or incorrect mandatory details in the advertisement, failure to present the certificate at the viewing, or failure to hand it over after the contract has been concluded may be penalised with a fine of up to 10,000 euros. Anyone who proceeds carefully here avoids needless trouble.
Exceptions, and why a reliable partner pays off
Not every property requires an energy performance certificate. Section 79 of the Building Energy Act names two key exceptions: the energy performance certificate provisions do not apply to a small building with a usable floor area of less than 50 square metres. And the obligations relating to issue, presentation and display do not apply to a listed building; here the protection of the historic fabric takes precedence.
In all other cases, the energy performance certificate is among the matters that should be settled early and correctly when selling or letting. This is precisely where our experience comes into play. As an arm of Wolfgang Richter GmbH, we have been supporting owners in the Düsseldorf and North Rhine-Westphalia market for more than six decades. Over the years a long-established network of more than 20,000 contacts has grown up, helping us to bring properties and suitable prospective parties together discreetly, on request also in a confidential marketing process away from the major portals.
If you wish to sell or let, we will work with you to determine which energy performance certificate is required for your property and to ensure that all obligations are properly met. In this way you can take every step with a reliable partner at your side.
