Legal
Certificate of Occupancy
A document issued by a local government that certifies a building meets building codes and is safe to inhabit. A certificate of occupancy is required for new construction before anyone can move in and may also be required when a property changes use. Some municipalities require a new certificate of occupancy when a home is sold, which can delay closing if code violations are found.
Why It Matters
Certificate of Occupancy has real legal implications for your rights and obligations as a homeowner or borrower. Overlooking the legal details of a real estate transaction can lead to costly problems down the road.
If you have questions about certificate of occupancy, consider consulting a real estate attorney, especially if you are in a state that requires attorney involvement in real estate closings. A small investment in legal advice can prevent major headaches later.