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Obtaining an energy passport is mandatory prior to closing on a property

Obtaining an energy passport is mandatory prior to closing on a property

Sellers in Europe have been required by law to conduct an assessment of a home's energy efficiency since 2010. Therefore, an energy passport is needed in Luxembourg before a home or apartment can be put up for sale. Where can I get my hands on this paper? Would there be no cost involved? If a diagnosis is made, what does that mean for the deal?

What is EPC?

When it comes to a building's energy use, the EPC (Energy Performance Certificate) or "energy passport" compiles all relevant information. Designed to aid homeowners in spotting insulation issues so they can address them during renovations, this tool also serves to educate potential buyers. The document was written so that anyone could read it and understand how the different properties in the market measure up in terms of their performance.

“This report was written so that anyone could use it to evaluate the relative merits of the various real estate options on the market”.

The EPC is a required document when a property's ownership or tenancy is being transferred.

At what point in time must one create the energy performance certificate?

When a property is put up for sale or rent, an energy passport must be created in accordance with local law. This means that the passport must already be in existence when the ads are released to the media. Indeed, fines can be imposed for commercials that fail to mention the energy passport.

How to Get an Energy Passport?

The Grand Ducal regulation regarding the energy performance of buildings was updated on November 30, 2017, and this regulation governs the EPC in Luxembourg. Experts such as architects and consulting engineers can issue it, but the full roster of experts recognized by the Ministry of Economy is available on the Grand Duchy's official website.

A professional can issue an energy performance certificate as part of their service. Therefore, the applicant will be responsible for the varying establishment fees depending on the nature of the interlocutor chosen.

What does the EPC consist of?

The energy performance certificate rates the property from A (the best possible) to (the worst possible). It states three separate facts:

  • The requirement for primary energy;
  • A high demand for heating;
  • the release of carbon dioxide.

To quantify these three factors, many criteria are considered. For instance, the thermal isolation of the building is carefully examined, with special attention paid to wall thickness, roof insulation, and the presence or absence of thermal bridges. The effectiveness of heating and hot water provisioning systems, as well as the ventilation quality, are also taken into account.

You can legally sell today even if you are issued a poor-grade energy passport. Nothing in this document should be construed as obligating anyone to undertake any sort of renovation work. Nonetheless, prospective buyers might be deterred by this criterion, especially now that consumers are becoming more conscientious about their energy bills.

Do you think the energy efficiency rating will help you sell the house?

The value of a home that requires a lot of energy to maintain will naturally be lower than that of a similarly constructed but well-insulated "low consumption" home (for the same surface area and characteristics). Since this data is required to be included in all real estate ads, it is frequently used by potential buyers when debating whether or not to schedule showings. Simply put, if the diagnosis isn't good, you'll need to lower the asking price or make repairs before you can expect to sell.