What exactly is an Energy Performance Certificate?

Under Government Decree 176/2008 and Act C of 2023 on Hungarian Architecture, an energy performance certificate is an official document that sets out the energy performance of a building or an independent unit, determined using the calculation method laid down by law. The certificate provides a standardised assessment of the property’s calculated energy performance and expected energy use. Actual consumption and utility costs may vary depending on occupancy and individual usage patterns.

Determining the Energy Rating label is mandatory in every EU member state for certain transactions. The aim of this provision is that, upon recognising the lower rating of our flat/house, we take measures that reduce the amount of energy wasted unnecessarily. The goal is to noticeably reduce the current wasteful level of energy consumption.

The current Hungarian rating scale consists of 12 categories, ranging from A+++, the most favourable rating, to I, the least favourable. The certificate includes classifications for both energy performance and carbon dioxide emissions. The certificate also shows how the property’s performance compares with the statutory requirements applicable to major renovations and nearly zero-energy buildings.

Hungarian law does not generally prescribe a minimum energy rating for the sale or letting of a property. However, certain financing or subsidy schemes may impose separate energy performance requirements.

When is it mandatory to have one prepared?

As a general rule, a valid energy performance certificate is required when an existing building or independent unit is sold for consideration or let, unless a statutory exemption applies. Do not leave the door open to a later penalty or complaint. It is not worth it!

According to the Hungarian Government Decree 176/2008 (VI. 30.), the property’s energy rating must also be stated in the advertisement. The seller or landlord must present the certificate or a copy to the prospective buyer or tenant by the date the contract is concluded and provide it no later than the date of possession.

Who prepares the certificate and how?

Certification may be carried out by certifiers registered with the Hungarian Chamber of Engineers or the Hungarian Chamber of Architects. For a new property, if the building was completed according to the plans, the certificate may be produced through a simplified procedure based on the construction documentation; otherwise the professional must perform calculations. For an existing property, the certifier carries out an on-site assessment, records the relevant structural and technical data, prepares the required photographic documentation and performs the calculations using the prescribed methodology.

When is it worth obtaining?

The certificate is valid for five years. If the statutory requirements or the classification methodology change during this period, a certificate issued before the change may be used for a sale or letting only for a further 60 days. If you decide to sell your property with our help, it is advisable to start the process as soon as the mandate agreement is concluded. Although the certification process is a relatively quick procedure, it is not worth waiting until you find a buyer, as there will be plenty to do around signing the contract.

Why is it important to have an Energy Performance Certificate?

✓ Stay compliant! As a general rule, the seller or landlord is responsible for obtaining a valid energy performance certificate when an existing building or independent unit is sold for consideration or let, unless a statutory exemption applies. Do not let yourself fall victim to complaints or penalties later!

✓ Feature it in your listing! The energy rating must be included in the property advertisement. It provides prospective buyers and tenants with standardised information and makes the energy performance of different properties easier to compare. Actual energy use and utility costs may still vary depending on how the property is occupied and used.

✓ Prevent complaints! If you did not provide an Energy Certificate with the contract and your buyer or tenant complains a few months after moving in, the responsibility is yours. Failure to comply with the certification requirements may result in legal or contractual disputes. The certificate should therefore be obtained, presented and delivered within the statutory deadlines. Even a lower-level rating is better than selling or letting without a certificate. Not only because buyers and tenants will soon pay increased attention to it, but also because this way a future complaint or legal dispute can be avoided.

✓ Increased value. An important part of the energy certificate is the modernisation proposal put together by the professional. The certificate generally includes recommendations for improving the property’s energy performance. Implementing suitable upgrades may reduce energy use, support a better rating in a future certificate and contribute to the property’s market appeal or value. Turn the certificate to your advantage!

If you are a buyer

✓ Always ask for it! Review the certificate before signing. The seller must present the certificate or a copy by the date the sales contract is concluded and provide it no later than the date of possession, unless a statutory exemption applies. The certificate can help buyers compare the calculated energy performance of different properties, but it does not predict exact utility costs.

✓ Since the seller is required to have the document prepared, it is advisable to ask for it in every case. Full disclosure is at least as much in the seller's interest as in yours, in order to avoid and prevent a later dispute.