The requirement of energy coefficient certification – strike to the real estate market, states notaries
Lithuanian Chamber of Notaries are worried about law’s regulation that came into force this year which during this stagnation period will cause additional concern and expenses in real estate market when selling or renting buildings.
On the 1st of January, 2009 regulations of Lithuanian Republic construction laws came into force inter alia requiring when concluding building or their parts sale or lease contract to have the document of building energy coefficient certification. The requirement is not applied to the buildings of cultural heritage, house of worship, temporary buildings, buildings of manufacturing, industry, storage and business purpose, recreation buildings and garden houses, which are used not longer than four months per year and in some other instances.
The president of Lithuanian Chamber of Notaries Marius Stračkaitis pays attention to that the requirement in the law is explained in a confusing manner – some of the regulations regulate the duty to provide building’s energy coefficient certification, others – a right to require such document.
After consultation with the ministry of Justice, Lithuanian Chamber of Notaries recommend the notaries, when approving buildings of their part sale-purchase contracts or lease contracts, to inform the buyer or leaseholder about his right to request to provide a valid building’s energy coefficient certificate and note in the approved contract that parties are explained the regulation of Construction law 43-1 article regarding the mandatory buildings’ energy coefficient certification. If a buyer or leaseholder does not request to receive the building’s energy coefficient certificate, this should be noted in the contract, indicating that buyer (leaseholder) has no claims regarding the quality of a building and will not make pretensions in future.
“The law should state clearly that a buyer or a leaseholder has a right to know what the building’s energy value is, but not a requirement to provide such document. This should be a matter of agreement between buyer and seller or leaseholder and lessor”, - stated M. Stračkaitis.
According to him, its regulations allow wide possibilities for interpretation and law violation regarding the non-application of energy coefficient certificate for building of temporary usage.
According to M. Stračkaitis the new law regulations cause concern to notaries as there are no rules in other European Union countries concluding sellers or lessor right to provide the buildings energy coefficient certificate. According to the president of LCN these controversial law regulations were made in Lithuania when hastily and irresponsibly interpreting European standards.
According to the president of Lithuanian Chamber of Notaries the effective regulations are especially not beneficial for real estate market currently being in stagnation – those trying to sell or lease buildings will be forced to pay additionally to the energy coefficient certificate providers. According to preliminary information, such certification service will cost frim several hundred to several thousand Litas.