Energy Certification – What is it?
Energy Certification? What is it?
Definition & Legislation
If you are thinking about selling or renting your property, please take into account that you will need to obtain an “Energy Certification and Indoor Air Quality of Buildings”.
The energy certificate is a document that assesses the energy efficiency of a property or building on a scale of A + (very efficient) to F (inefficient). It is issued by the experts authorized by ADENE. This document must include information on energy consumption of air conditioning and hot water. It should also contain measures to reduce energy consumption, such as installing double glazing or improving insulation. This document is valid for 10 years.
This document is a mandatory procedure by law from late 2013, as soon as the property promotion starts, both for sale and for rental. Contrary to what you may be informed this document is required at the beginning of the property promotion.
Now if you decide to promote your property privately , or with a real estate agency you still must obtain and submit this document in the property description, it is obliged by law, if you simply place a single sale card, give it to a traditional agency or a even on an online site.
This topic is very controversial and discussed by the owners and agencies, most people are misinformed and badly-advised these people are based on the previous law (2009) wherein said energy certificate was only required, presented and delivered at the signing of the sales contract or signing the rental contract. As the energy certificate has considerable cost many choose not to get it and even many real estate professionals and agencies wrongly agree with the decision.
However let me alert you of the fact that if you do not get and display the Energy Certificate in the property promotion, both owner and estate agency are at risk of a minimum fine of 2,500 €.
A lot of times I talk to owners interested in selling their property, quickly I gather that many of them do not know about this law and how much of a heavy risk fine it is, most of the time misinformed or again badly-advised by “professionals” or “freelancers” real estate.
This document is easy to obtain and the investment, return is guaranteed. The fact is that since the introduction of this document on the market, homeowners have been recovering value and the return is practically assured in the future sale of the property. The energy certificate should be faced as an investment in the property and not as a cost.
The truth is that the introduction of this document helps stabilize the law of supply vs. demand, since we have fewer homes for sale. The owners who actually truly want to sell end up getting the document. Owners who do not want to sell or who are less motivated or have less urgency, choose not to spend the money on an Energy Certificate and do not put the property on the market, so there is less offer for the same search.
Also note that if you find a serious buyer the process of the sale can go through a lawyer or a bank, at some point they will request the updated property documents, including the Energy Certificate, therefore if the owner already has this document the business will be at less risk of falling and closing the deal will be much faster.
Check this link for more info:
- Energy certificate more info
- Portugal’s certification system for buildings encourages efficiency (PDF file)
I hope that this article is usefull for you. If you need any help to sell or even to get this document please contact me to my email or phone. I have several contacts from professionals that make this work and document.
Regards
