One of the modern problems of cities is the high energy consumption of buildings, which, in combination with climate change, accelerates the greenhouse effect. The energy upgrading of old buildings and the construction of new ones, which consume less energy, are now imperative.
In this context, recently, with a new circular, the Minister of the Environment gave explanatory instructions regarding the Energy Efficiency of Buildings and the Energy Performance Certificate (EPC), with the aim of more fully informing owners, tenants - buyers, brokers, advertising companies, the press as well as the AADE.
The circular (A.P.111748/705/19-11-20) of the Ministry of Economic Development states that, from January 1, 2021, every building or building unit, which is available for sale or for rent, is required to already have a PEA so that the energy efficiency index (energy category), as it results from the PEA, is declared in all commercial advertisements and listings, that is, in every advertisement in the press or in electronic media, as well as in every posting - reference in real estate agencies, the energy category of the building is clearly declared, so that the energy classification of the property constitutes a basic comparative element for shaping the choice of the interested buyer/tenant.
Therefore, every building or building unit, in order to enter the disposal process, must have a valid PEA in advance. In case of non-compliance, fines will be imposed on the legally obligated party.
Why is an energy performance certificate (EPC) needed?
The EPC is the "energy identity" of the building, it is drawn up by an engineer in the capacity of an energy inspector and shows the annual total energy consumption of the building, depending on its use and the actual annual carbon dioxide emissions, and it records the engineer's recommendations for improving the energy efficiency of the building.
For this reason, the EPC is a very important element that must be taken into account by the prospective buyer or tenant, so that he knows the money he will pay to the PPC, heating and cooling, according to the condition of the property. For example, when someone wishes to rent an apartment and chooses between two apartments that have the same square footage and similar rental price, then they should choose according to the energy certificates and the data that show the energy consumption requirements of each building, either for cooling or heating.
Therefore, the PEA is not just a piece of paper necessary for the transfer or rental of the property, but the tool through which the required interventions (insulation, natural gas, energy-saving windows, etc.) are shown, with the corresponding cost that will be required for energy savings.
When is the issuance of an Energy Performance Certificate (EPC) mandatory?
The issuance of an energy performance certificate (EPC) is mandatory:
a) after the completion of the construction of a new building or building unit and concerns buildings with a building permit that fall under the provisions of the new Energy Performance Regulation (KENAK) (permits issued after the start of implementation of KENAK 2010 and fall under its provisions),
b) after the completion of a radical renovation of a building or building unit,
c) upon the sale of a building or building unit, until the activation of the building identity,
d) upon the lease (long-term, short-term, sublease) to a new tenant of the building.
Does it only concern residential buildings?
No. The issuance of an energy performance certificate (EPC) is mandatory for all properties (residential, commercial, educational, etc.) except for buildings with uses: industry, crafts, agricultural (except residential), laboratory, warehouse, car park, gas stations.
What happens when in a two-story building the ground floor is a shop and the first floor is a residence? Will a certificate be needed?
The EPC is issued for each use. It is possible to issue an EPC for the entire building, as well as multiple EPCs, one for each building unit. In a mixed-use building, EPCs are issued depending on the use. Therefore, in a building with shops on the ground floor with residential units on the upper floors, one EPC is issued for the shops and one EPC for the upper floors. for residences (one P.E.A. cannot be issued for both uses).
Is a P.E.A. issued for a rural warehouse that I rent?
No. The issuance of a P.E.A. is not permitted for the following cases:
a) for buildings used as industrial facilities, crafts, professional workshops, warehouses - logistics.
b) for buildings whose duration of use based on their design does not exceed two (2) years, such as construction site huts (it concerns the duration and not the construction materials).
c) for buildings for rural uses.
d) for other spaces, e.g. parking spaces, car washes, kiosks, open-air theaters, open-air concert venues, motorhomes or trailer caravans, car washes, livestock - poultry units, stables, slaughterhouses, etc.
e) for a space that is not considered a building (in its current state), (e.g. in an unfinished, unroofed structure or a dilapidated building).
What is the EIA for renting a building?
a) For each new lease of a building or building unit, the tenant must be informed about the energy efficiency and classification of the leased property (by receiving a copy of the EIA) before the contract is drawn up. The obligation to inform him is in effect since 9.1.2011 for new leases of buildings and since 9.7.2011 for new leases of building units.
b) The obligation to issue an EIA and inform the tenant applies to both long-term leases and subleases and short-term leases.
c) The EIA details during the lease (long-term, short-term, sublease) are registered in the corresponding online application of the AADE.
I am giving the house to my child. Do I need to make a P.E.A.?
No. A free concession is not a lease and the issuance of a P.E.A. is not required (the relationship of the contracting parties is not examined).
Also, the concession or rental of part of a building unit does not require the issuance of a P.E.A. since it is not possible to issue a P.E.A. for part of a building unit (e.g. renting a bedroom in an apartment, or part of an apartment that has been converted into an office space for a professional, e.g. a lawyer, accountant, etc.).
I have taken out a P.E.A. and now the tenant is changing. Do I need a new one?
No. There is no obligation to draw up a new P.E.A.:
In the event of a renewal or extension of the lease agreement, as the tenant for the same property remains the same.
When for any reason, the lease agreement is transferred (e.g. in the case of business transformation).
However, if at the time of the conclusion of the initial contract a PEA had not been issued, although it was required, then it is issued immediately and delivered to the tenant.
Thanasis Sakkas
Real Estate Agent INVESTA Real Estate
Architect Engineer
