What happens if the vendor or landlord has ordered an EPC and it hasn’t arrived?

If the vendor or landlord has ordered an EPC from a person who can provide an EPC for the category of building in question at least 14 days before it was required and have made, and continue to make, all reasonable efforts and enquiries to obtain it in time, the sale or rental process can continue whilst waiting for the EPC. If the EPC was ordered less than 14 days previously, the following should not happen:

  • viewings
  • the provision of any written information
  • entering into a contract with a prospective buyer or tenant.

If any of these happen without an EPC being made available, the vendor or landlord will be liable to a penalty charge. These actions can commence when the EPC is available, or when 14 days have elapsed after it has been ordered and if all reasonable efforts and enquiries have been made, and continue to be made, to obtain it in time.

 

What is the penalty charge?

In most cases, the penalty charge will be 12.5% of the rateable value of the building with a default penalty of £750 where the formula cannot be applied. The range of penalties under this formula are set with a minimum of £500 and capped at a maximum of £5,000. It is the vendor or landlord who will be liable for the penalty charge. However, it is good practice for an agent to inform the seller or landlord of the legal obligation and to recommend that an EPC is obtained.

 

Do I need an EPC where a tenant is in occupation?

Where a tenant is in occupation before the 1 October 2008 and continues to be occupation after this date an EPC is not required. If at a later point the tenant changes, an EPC will be required to show prospective tenants. The EPC is valid for up to ten years, unless a newer EPC is produced for the property, in which case only the latter is valid.

 

What does make an EPC available mean?

It is our view that this means at the least:

  • making the prospective buyer or tenant aware that the EPC is available
  • having the EPC ready to be shown if asked, and
  • giving a copy of the EPC and recommendations report, if asked, without charge, either at once, or if that is not practical at the first available opportunity.

It would be good practice to therefore:

  • have it in your possession if you are conducting a viewing of a property
  • provide a copy EPC or a link to the EPC if you hand over or send out any written information about a building.

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