What is a Certificate of Occupancy & Inspection?
Any new homebuyer wants to know that their new property is safe to live in. This safety is often ensured before the purchase of the home through a permit called a certificate of occupancy, or CO. But what is a CO inspection? Why is it important? How do you get one?
In this article, we’ll answer each of these questions (and more!) so you can be certain that your property is safe and legally approved for use.
What is a Certificate of Occupancy?
So, let’s start with the basics: What is a certificate of occupancy? In simple terms, a CO is a legal document issued by your local government’s building or zoning department that confirms that your property is up to building code and safety standards, like proper wiring and fire safety. A CO also specifies the class of the property and its use—such as residential versus commercial—so the local government can legally affirm that the property can be used as a home, business, or other type of space.
A CO inspection is typically required before the sale or purchase of a property, which means that the government must approve the safety of the building before money exchanges hands at closing. This means that if your area requires a certificate of occupancy, it’s critical that you receive one in advance of the closing.
When To Use a Certificate of Occupancy
There are several instances when you may be required to obtain a CO. Let’s take a look at them below:
Large-scale Renovations
Many changes you make to a home won’t need a CO, but if you’re doing large-scale renovations that change the structure of the property, you will likely need a new CO inspection. If you’re making plans to finish a basement to rent to new tenants, add onto the pre-existing building, or tear out walls, it might be time to start looking into your local government’s CO process.
New Builds
One common case where a CO will be needed is when a new property is built. A CO inspection will need to be completed before anyone can occupy the building and is sometimes needed before construction is even completed.
Change in Property Type
As mentioned above, with a certificate of occupancy comes the definition of the class and use of your property. This means that if you change the use of your property, like changing a single-family home into a commercial business, you will need a new CO to reflect this change in proposed use.
Purchase or Sale of Home
In some municipalities, the sale or purchase of a home requires a new CO as the property changes hands (usually paid for by the seller). Be sure to check your local building or zoning rules surrounding the sale of a property to confirm whether a CO is necessary.
How to Get a Certificate of Occupancy
So, you’ve answered the question, “What is a CO?” and have learned when you might need one. The next question is how to go about getting a CO inspection completed on your property, and we’ve compiled the typical steps for this process below:
- Contact local building or zoning department: First, you’ll want to reach out to your area’s building or zoning department to request a CO inspection and confirm what documentation you’ll need to provide. Documentation requirements can also be found online in most cases.
- Site inspection: An inspector will then come to the property to do a walk-through and check for any issues with wiring, plumbing, doors or exits, or other additions to the building. These criteria will be checked against local building code to ensure safety. You should always be present for any CO inspections done on your property.
- Payment: After the inspection is completed, you’ll need to pay any necessary fees charged in your municipality. These fees vary by area, so be sure to research your locality’s specific charges so you can have the funds prepared beforehand.
- Review and approval: Once the inspection is completed and paid for, your property will be reviewed against local building codes. If your building passes the inspection, you’ll receive a report informing you that you’re able to move forward with selling, renting, or building; if it fails, you’ll be given a list of repairs or changes to make as well as a timeline for completing them. You’ll need to have another final CO inspection done after fixing any issues to finalize your certificate of occupancy.
- Certificate obtained: Finally, after passing the CO inspection, you will receive your certificate of occupancy and can move forward with the sale, renovation, or building of your property. Congratulations!
Why a Certificate of Occupancy is Important
A certificate of occupancy isn’t just another step in selling or renovating a home. A CO is important for a variety of reasons and can benefit all parties involved. First and foremost, a CO protects owners’, buyers’, or tenants’ safety by checking that the home is up to standards for safety code.
A certificate of occupancy can also protect your wallet in the long run and help the homebuying process move smoothly and quickly. A CO is often required to complete a sale, so if an inspection hasn’t been done, closing on a home can stall. Additionally, if you live or work on a property that does not meet safety requirements or have an up-to-date CO, you could be fined by your municipality.
Again, different areas have different requirements for when a CO is needed, how much they cost, and the consequences if you don’t have one. Doing research and communicating with your city’s local building authority before you begin renovating or marketing your home for sale can guarantee you’ll be knowledgeable and compliant with local regulations.
Conclusion
Obtaining a certificate of occupancy may seem like just another barrier or extra expense in the home buying or renovating process, but the bottom line is that certificates of occupancy are regulations for a reason—to keep you safe! If you’re unsure about rules or requirements in your area surrounding a CO or have other questions, be sure to ask a local real estate attorney so you can remain both law-abiding and safe on your property.
FAQs
What is a Certificate of Occupancy?
A Certificate of Occupancy (CO) is a legal document issued by the local government’s building or zoning department, confirming that a property meets mandatory building codes and safety standards. It specifies the property's class and use, such as residential or commercial.
When is a CO inspection required?
A CO inspection is typically required during large-scale renovations, when new properties are built, if there's a change in the property type, or during the purchase or sale of a home. Always verify your local requirements as they can vary.
What happens during a CO inspection?
During a CO inspection, an inspector visits the property to assess safety features, such as wiring, plumbing, and fire safety. If the property meets local building codes, you can proceed with your plans; if not, necessary repairs must be made.
How can I get a Certificate of Occupancy?
To get a CO, contact your local building or zoning department, schedule an inspection, pay any applicable fees, and complete any required repairs. A follow-up inspection may be needed to finalize the certificate.
Why is a Certificate of Occupancy important?
A CO ensures the safety of property occupants by confirming compliance with safety standards. It’s often needed to complete a sale, and lacking one can lead to fines or delays in transactions.
