The Complaint

When Ellen* decided to sell her property through auction, she trusted her chosen property auctioneer to handle the process smoothly, including obtaining a missing Energy Performance Certificate (EPC).

Ellen claimed that the auctioneer agreed to arrange the certificate on her behalf. She believes that the business’s failure to provide it meant her property was sold without the EPC in place, leading to delays in payment and potentially reducing the sale price.

The business denied responsibility, stating that arranging the EPC was Ellen’s duty and insisted that the agreed reserve price was set before the property went to auction, meaning the sale value wasn’t affected by the missing certificate.

EPC rules

Under the Energy Performance of Buildings (England and Wales) Regulations 2012, an EPC is required before a property is marketed for sale or rent. Sellers who fail to provide one can be fined up to £200.

Documents showed that the business had given Ellen the option to have them arrange the certificate for £100 + VAT. The signed contract confirmed that Ellen selected this option.

As the selling agent, they had a duty to ensure the EPC was in place before marketing the property, but it was never obtained.

Evidence revealed that Ellen’s solicitor emailed the business, pointing out that the EPC was missing from the legal pack. Despite this, the business had already listed the property for auction without following up or ensuring the certificate was in place.

The investigation

While the Ombudsman’s investigation found that the business failed to comply with its obligations, which prohibit marketing without a valid EPC, it could not be proven that the absence of the EPC directly reduced the sale price.

Although Ellen claimed buyers were willing to pay between £480,000 and £510,000, this wasn’t enough to establish that the auction’s reserve price was wrong.

Outcome  

The missing EPC caused Ellen unnecessary aggravation, and the dispute was supported this. The adjudicator advised the parties that a compensation award of £300 would be an appropriate amount to settle the dispute.

*Please note that all names in this case study have been changed to maintain anonymity.