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Christian Delbert/Shutterstock April 29, 2022 Sarah Li Cain is an experienced content marketing writer specializing in FinTech, credit, loans, personal finance and banking. Her work has appeared in Fortune 500 companies, publications and startups such as Transferwise, Discover, Bankrate, Quicken Loans and KeyBank. Michele Petry is a senior editor for Bankrate, leading the site’s real estate content. Bankrate logo The Bankrate promise
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money. Bankrate logo The Bankrate promise
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Buying or selling a home is one of the biggest financial decisions an individual will ever make. Our real estate reporters and editors focus on educating consumers about this life-changing transaction and how to navigate the complex and ever-changing housing market. From finding an agent to closing and beyond, our goal is to help you feel confident that you're making the best, and smartest, real estate deal possible. Bankrate logo Editorial integrity
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You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. It’s natural to want to make sure your home is safe to live in. Luckily, in many places, there are regulations homesellers must adhere to regarding disclosing information to buyers. In some municipalities, this means having a certificate of occupancy, sometimes shortened to CO. Effectively, it’s a special permit legally proving that a property is habitable and meets all code and usage requirements. Let’s take a look at what you need to know about a certificate of occupancy, including what it is, where to get one and who pays for it.
What is a certificate of occupancy
A certificate of occupancy is a legal document that proves a structure, such as a house or office building, is safe to inhabit. In addition to the property address and owner, a certificate of occupancy will include the following three things: Description of specific legal use and type of property: This indicates what the property is classified as from a zoning perspective, such as whether it’s zoned for residential, commercial, industrial, retail or mixed-use purposes. It ensures the property is being used as intended. Verification that the property is up to code: This serves as proof that the property is in compliance and up to date with housing and building codes. Confirmation that the property is suitable to be occupied: This confirms that the property conforms to the codes and standards set by your municipality and the structure is fit for occupancy. Without a CO, the property cannot be legally occupied. When you may need a certificate of occupancy
In general, will not require a new certificate of occupancy to be issued. However, there are a few home-improvement scenarios when a certificate of occupancy probably will be required, depending on local rules and regulations. If you completed a major renovation: When you make significant changes or improvements to a property — for example, fixing up a home that had been condemned, or even completing a family-room addition or adding a new bathroom — you’ll likely need to obtain a certificate of occupancy before you can sell it. That’s in addition to needing a building permit upfront. If you’ve changed the property type: Every type of residence, such as a condo, multifamily or single-family home, has its own permitting and records that detail the type of property to ensure it is used the way it was intended. (The same goes for commercial properties.) Owners who get a permit to convert their property to a different class will need a certificate of occupancy indicating the change. For example, if you’re building a basement apartment that converts a single-family home into a multifamily one, you’ll need to get a certificate after the work is completed to reflect that. If it’s a newly constructed property: A certificate of occupancy is required as part of the sale of any brand-new home or building. If a property has a new owner or occupant. Some municipalities require a new certificate of occupancy each time you sell a property, or when a new tenant moves into a . To ensure you’re following regulations, check with your local building or zoning authority. How to obtain a certificate of occupancy
To get a certificate of occupancy, contact your local building or zoning inspection office and ask what documentation you’ll need to provide. In most cases, the information will be posted on your local government’s website. Some areas have much more stringent regulations than others — , for example, are an exception to most other markets. Typically, your municipality will send an approved inspector to check out fire safety, electrical wiring and plumbing systems, plus any general additions, such as doors and exits. These will be compared to building codes to determine if there are any violations. Whoever applies for the certificate must be present for all required . Once an inspection has been completed, you’ll receive a report that outlines the details of your property and whether you pass. If so, you can claim your certificate and are free to sell the property. If not, you’ll receive a list of issues that need to be addressed before the sale can be completed. Your municipality will decide how much time you’ll be given to complete repairs. Then, you’ll need to complete another CO inspection in order to move forward.
How much does a certificate of occupancy cost
Because different municipalities operate differently, the fee to get a certificate of occupancy varies significantly. For example, in , it costs $260 for a safety permit, plus $89 and $3 for every 1,000 square feet of space in the building. Compare this to , where it costs $100 plus an additional $0.12 per square foot. The cost, which is typically paid by the seller, also depends on the size and type of property. Bottom line
Getting a certificate of occupancy can be a lengthy and expensive process, especially if you need multiple inspections. Rules around them vary significantly from market to market, and one may not even be needed in your local market. But when they are required, they are non-negotiable. SHARE: Sarah Li Cain is an experienced content marketing writer specializing in FinTech, credit, loans, personal finance and banking. Her work has appeared in Fortune 500 companies, publications and startups such as Transferwise, Discover, Bankrate, Quicken Loans and KeyBank. Michele Petry is a senior editor for Bankrate, leading the site’s real estate content. Related Articles