Energy certificate? Do I need this document to promote my property?

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Energy certificate?

What is it? How much does it cost? How to get it?

If you are thinking about selling or renting your property, please take into account that you will need to obtain an “Energy Certification and Indoor Air Quality of Buildings”.

What is an energy certificate?

The energy certificate is a document that assesses the energy efficiency of a property or building on a pre-defined scale of 8 classes (A+, A, B, B-, C, D, E and F), where class A+ corresponds to a building with the best energy performance, and class F corresponds to a building with the worst energy performance.

This document should include information on energy consumption, air conditioning, insulation, air entering through doors, hot water, etc… It should also contain suggestions for improvements to reduce energy consumption, such as installing double glazing, solar or improving insulation.

Is it a must for the marketing and promotion or only for the deed?

This document has been compulsory by law since the end of 2013, as soon as you start the promotion of the property begins, both for sale and for rentals, even short rentals like AIRBnB or Booking. Contrary to what you may have been told, this document is required and obligatory by law right from the start of the property development. So if you want to advertise your property on the internet, make flyers, post on Facebook, put up a for sale sign, etc., whether privately or with a real estate agency, you must obtain this document from the first day you start promoting and advertising your property.

How to get it? How much does it cost?

To obtain an energy certificate you will need to hire a qualified expert authorised by ADENE.  This expert will visit the property in person and carry out a survey of the property in order to gather all the information needed to issue the document. The expert will ask you for some necessary documents such as a floor plan, “caderneta predial”, etc… The energy certificate will then be issued and sent to you, usually by email after the work has been completed a few days after the property has been inspected.

Costs may vary depending on the type, nº of bedrooms, size or location of the property, so average price for a one bedroom apartment is around €225, for a two or three bedroom apartment around €275 and houses or villas may cost €350 or more depending on size and number of bedrooms. Note that these figures are averages and estimates and usually include the ADENE fees and VAT (at 23%). You will always have to check and review these figures with each ADENE technician, as each one may have different price lists.

Always ask for an invoice for the service as the cost of this document can be presented as an expense to be deducted from your capital gains after the sale is made!

Fines?

As I said at the beginning of this article, the presentation of this document is required by law from the very beginning of the development, whether it’s done privately or with a real estate.

So, if you don’t comply with the law, you’ll be liable to pay a fine to the state ranging from €250 to €3,740 in the case of private individuals. For companies, the fines range from €2,500 to €44,890. These fines apply both to property owners and to the real estate agency that promotes a property without the respective energy certificate.

This is a very controversial subject and one that has been discussed by property owners and agencies. Most people are ill-informed and ill-advised because they are based on the previous law (2009) where the energy certificate was only required when signing the sales contract/writing or when signing the lease. As the energy certificate has a considerable cost, many people choose not to obtain it and even many “real estate freelancers” or real estate agencies wrongly agree with this decision, risking heavy fines.

Advantages?

The energy certificate is easy to obtain and the return on investment is almost guaranteed. The fact is that since the introduction of this document on the market, property owners have been recovering the cost of this document with the sale of the property because they can write it off against capital gains. The energy certificate should be seen as an investment in the property and not as a cost.

Also note that if you find a serious buyer the process of the sale can go through a lawyer or a bank, at some point they will request the updated property documents, including the Energy Certificate, therefore if the owner already has this document the business will be at less risk of falling and closing the deal will be much faster.

I hope that this article is usefull for you. If you need any help to sell or even to get this document please contact me to my email or phone. I have several contacts from professionals that make this work and document.

Regards

Artur Cruz

Author: Artur Cruz

I’m a real estate agent several times awarded in my career, “Centurion Producer”, “Hall of Fame”, real estate agent also awarded in Las Vegas, USA at one of the biggest and more important real estate conventions in the world. East Algarve “Top Producer” in real estate.

View all posts by Artur Cruz >

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