NAVIGATING THE NEW EPC REGULATIONS ON COMMERCIAL REAL ESTATE IN BELGIUM
At Avenue, we aim to create seamless transactions for our clients, which is why we work closely with experts in all fields and specializations to guide the transaction for buyers, sellers and leasers.
House Check is a government-recognized agency for EPC inspections. In Belgium, there are 32 companies that have accreditation from BELAC (Belgian Accreditation Committee) by the FOD economy, and House Check is one of them. In addition to EPC inspections, they are also process-certified for asbestos certificates. This means that as a company, they have accreditation to issue asbestos certificates and can employ certified asbestos experts to perform asbestos checks.
Aside from a strong basis in private residential work, House Check also performs EPC checks for small and large non-residential buildings. In that capacity, they work frequently and closely with Avenue to provide all necessary documentation to ensure a transparent transaction for all parties involved.
In the context of real estate transactions, what are the disclosure requirements and responsibilities related to energy scores and asbestos in Belgium?
For the sale of large non-residential buildings you need both an EPC and asbestos certificate. For rentals, you currently only need the EPC certificate.
For a large (over 500m2) non-residential building, the EPC certificate consists of two parts: a label, which goes from X to A and a theoretically calculated score indicating the primary energy kWh demand per m2.
The label provides a reference as to how much renewable energy the building uses while it's generated. If a building has solar panels and uses the exact amount of energy they generate each hour, the building will receive an A label. This means your renewable energy usage is 100%. The goal is for all large buildings in Belgium to use the energy at the same time they generate it and therefor become self-sufficient.
The theoretical score on the other hand calculates the estimated kWh usage of primary energy per m2 per year. To do this, the experts take into account general heating and lighting needs, but also factor in the efficiency of the systems and isolation in place. The more performant those systems, the lower the consumption and the ultimate score.
How important is the EPC when buying commercial real estate?
Buyers of commercial real estate should look for buildings with a low EPC score because this indicates that energy efficient systems have already been installed and the walls are well insulated. While the label purely looks at what percentage of renewable energy is used, the score will point more towards the quality of installations and isolations, giving an indication of the investments that are still needed. If the score is low, the buyer will have to make fewer additional investments after purchase.
What are the 3 main actions sellers can undertake to achieve the best possible EPC result?
Make sure you can present a comprehensive set of available documents for your building. Invoices, building plans, an EPB declaration (for buildings built after 2006), and pictures of the renovations an all serve as supporting documents to prove the presence of insulation.
If no documentation is available, you can have a destructive survey done which demonstrates that insulation has been put in place. This relatively cost efficient operation can mean the difference between a score that assumes no insulation is in place and one that takes into account your efforts.
Finally, changing your heating systems from an old gas-boiler into a condensing boiler or replacing old light bulbs by LED’s can make a huge difference in the final EPC score.
EPC certificates play a pivotal role in shaping transparent and efficient transactions which is why Avenue stands as a valuable ally in successful and mutually beneficial deals.