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By George Mouskides
General Manager, FOX Smart Estate Agency
Licensed Estate Agent, US Certified Public Accountant
Legislation regulating the energy efficiency of buildings was voted in 2006 and amended on several occasions after that, coming into force a full four years later on 1/1/2010.
So, what does the legislation provide for?
All buildings (flats/house/shops) to be sold or rented must be accompanied by an Energy Efficiency Certificate (EEC) and the certificate must be presented to the tenant or buyer before the transaction is finalised.
It is also demanded that the EEC must be mentioned in all adverts promoting the property for sale or rental.
COST
The certificate is issued by the Ministry of Commerce Industry and Tourism, following a study by a certified member of the Technical Chamber ETEK.
Indications at this stage regarding the cost are in the region of about EUR 2/sq.m. and the certificate is valid for ten years.
The sale or rental of the property is by no means hindered by its energy efficiency category.
USEFUL
This practice is useful as it provides useful energy cost estimates to prospective buyers or tenants.
It also reflects on the value of the property. In cases of poor energy efficiency, the owner always has the option to make the necessary changes to upgrade it.
What is unfortunate is the timing the Ministry has chosen to enforce the legislation, namely a whole five years after it was implemented, and all in the midst of an economic crisis affecting the whole country.
Right now, property owners find themselves in the worst possible economic position with property sale prices and rents having hit rock bottom and taxes on the rise. Paying for the issue of an EEC is something they can do without at the moment.
EXAMPLES
Examples of procedures and legislations which were never enforced abound. Just remember the Final Approval Certificate, a “must-have” before the owner can take occupancy of the property.
Our proposal is that a timeframe is agreed upon, giving time to owners to secure the EEC without being pressured and having penalties imposed on them. A six-month grace period would make sense. Penalties could come into force following this period.
An even better move would be to put the legislation on ice until the economic situation is better, so that owners have the means to proceed with the inspection and the issue of the Energy Certificate.
George Mouskides is General Manager, FOX Smart Estate Agency, a licensed estate agent and US Certified Public Accountant
