Common Regulation in Europe on Mandatory Real Estate Diagnostics in the Case of Sale
The European Union (EU) does not have a unified and harmonized regulation regarding mandatory real estate diagnostics during the sale of a property. However, several European directives regulate certain essential diagnostics, particularly in terms of energy performance, safety, and public health. Each Member State then applies these requirements through its own laws and regulations, resulting in differences from one country to another.
European Directives Governing Real Estate Diagnostics
The EU sets minimum standards for certain diagnostics, notably through the following directives:
Energy Performance Certificate (EPC) - DPE
Imposed by Directive 2010/31/EU on the energy performance of buildings.
Mandatory for any property sold or rented in the EU.
Objective: To inform the buyer about the energy consumption and environmental impact of the property.
Energy rating displayed (from A to G in most countries).
Variability: Some countries require more detailed audits (e.g., France, Germany, Netherlands).
Asbestos and Lead
Asbestos: Regulated by Directive 1999/77/EC, prohibiting asbestos in new buildings since 2005. Some countries require a mandatory diagnostic before sale (e.g., France, Belgium), others do not (e.g., Germany).
Lead: Directive 98/83/EC imposes strict limits on lead in drinking water. Some countries require diagnostics for older properties (e.g., France, Italy), but this is not widespread across Europe.
Gas and Electricity Installations
Safety standards imposed by Directive 2009/142/EC (gas) and Directive 2006/95/EC (low voltage).
No EU-wide diagnostic obligation, but some countries require inspection during the sale (e.g., France, Italy, Spain).
Natural and Technological Risks
Directive 2007/60/EC requires States to map flood-risk areas.
Some countries require diagnostics for natural risks (e.g., France, Spain), but this is not an EU-wide obligation.
Differences in Mandatory Diagnostics by Country
Each country applies the directives differently, sometimes adding its own requirements.
France
- Mandatory EPC.
- Asbestos, lead, gas, electricity, termites, sewage, natural risks, and Carrez law measurement diagnostics are required.
Germany
- Only EPC is mandatory.
- No obligations for asbestos, lead, or electrical/gas installations.
Spain
- EPC mandatory.
- Technical inspection required for buildings over 50 years old.
- No obligation for asbestos or lead.
Italy
- EPC mandatory.
- Inspection of electrical and gas installations required based on the property's age.
Belgium
- EPC mandatory.
- Asbestos diagnostic required for buildings constructed before 2001.
- Electrical inspection required.
Towards Future Harmonization?
The EU seeks to harmonize the rules to make diagnostics more consistent across countries. Several reforms are under discussion:
- Overhaul of EPC: Unifying criteria and calculation methods to facilitate comparisons between countries.
- Towards mandatory asbestos and electricity diagnostics? Some Member States advocate for harmonization on these points.
- Integration of climate risks: The EU may impose a climate diagnostic integrating risks of flooding and storms.
Key Takeaways
- No single regulation in Europe, but common directives applied differently in each country.
- EPC is mandatory across Europe, but calculation methods vary.
- Asbestos, lead, gas, and electricity diagnostics are not harmonized: they depend on national legislation.
- Future trends: Towards harmonization of EPC and better consideration of environmental risks.
Advice: If you are buying or selling property in another European country, make sure to check the local requirements to avoid any surprises!