What you should know now about the new Building Energy Act

The new Building Energy Act (GEG) came into force on November 1, 2020. Its purpose is to consolidate regulations on limiting the energy requirements of buildings, which were previously spread across various laws such as the EnEV and EEWärmeG, in one place. By and large, however, the previous regulations on energy saving continue to apply, meaning that the practical impact is limited. We have compiled some details for you here that are nevertheless of interest to property owners, sellers and estate agents.

The most important point for building owners first: the GEG does not affect the requirements for new builds. The currently mandatory minimum level of the Energy Saving Ordinance (EnEV) is declared to be the lowest energy building and therefore remains valid.

Oil heating systems and outdated boilers

For existing properties, the new law also does not result in any tightening of the energy requirements for refurbishment measures. The only new features are a ban on the operation of certain boilers (Section 72 GEG) and a provision that prohibits the installation of oil heating systems in existing and new buildings from 2026, unless it is a hybrid system that ensures part of the heat supply via renewable energies. However, existing oil and gas heating systems may continue to be operated, provided they were not installed before January 1, 1991.

The energy performance certificate and information obligations when selling or letting

Further readjustments and specifications in the new Building Energy Act relate to the information obligations for sellers, landlords and estate agents vis-à-vis buyers or tenants. Previously, property sellers were already obliged to present a valid energy performance certificate to prospective buyers at the latest at the time of the viewing. Now, in accordance with § 87 GEG, certain information from the energy certificate must be included in real estate advertisements, even if these advertisements are prepared by an estate agent. Failure to provide this information may result in a fine. In addition, according to Section 80 (3) GEG, property owners are now generally obliged to obtain a valid energy performance certificate before selling or letting a property if one is not yet available.

Mandatory energy advice for buyers

In addition, the law also stipulates a new obligation for buyers of "residential buildings with no more than two apartments". According to Section 80 (4), buyers must take advantage of a consultation on the subject of energy performance certificates before concluding the purchase contract, which can be offered free of charge by persons authorized to issue energy performance certificates. In practice, the law does not appear to provide for any sanctions in the event of non-compliance with this obligation. Nevertheless, it could be useful for sellers and estate agents to draw the attention of prospective buyers to the basic obligation to obtain advice. In this way, they can also demonstrate their expertise and knowledge of the current legal situation.

Would you like to know whether it is worth optimizing the energy efficiency of your property before selling it? Get in touch with us! We will be happy to advise you.

Did not find what you were looking for:

https://www.bmi.bund.de/DE/themen/bauen-wohnen/bauen/energieeffizientes-bauen-sanieren/energieausweise/gebaeudeenergiegesetz-node.html

https://www.bafa.de/DE/Energie/Heizen_mit_Erneuerbaren_Energien/Foerderprogramm_im_Ueberblick/foerderprogramm_im_ueberblick_node.html

https://de.wikipedia.org/wiki/Geb%C3%A4udeenergiegesetz

Legal notice: This article does not constitute tax or legal advice in individual cases. Please consult a lawyer and/or tax advisor to clarify the facts of your specific individual case.

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