September 29, 2019
When you purchase or construct a property, whether residential or commercial, you’ll eventually need a certificate of occupancy (CO). In this article, we’ll explore what is a certificate of occupancy and how to obtain a certificate of occupancy. Then, we’ll review certificate of occupancy requirements, including those for a temporary certificate of occupancy. Additionally, we’ll compile a set of links to certificate of occupancy resources from selected cities. Finally, we’ll describe how Assets America ® can help, and then answer a few frequently asked questions about COs.
In this section, we’ll explore what is a certificate of occupancy. As its name implies, a CO confirms that humans can occupy your property. Without one, people won’t be able to move into, live in or occupy a property, a major consideration for owners and investors.
Assets America ® can work with you to arrange a construction loan starting at a bare minimum of $10 million and greater. Usually, these loans pay out in installments. We can help ensure that you receive your current installment as soon as possible. Specifically, we can get you the final installment shortly after you receive your certificate of occupancy.
COs address four important purposes:
You must work with state or local government to acquire a CO. Typically, the relevant office resides in a county, town, or city building/housing department. Generally, you must apply for a CO before commencing any work on the property. Also, you will have to pass all inspections and pay any fees or fines on the property. For example, these inspections can include:
Local agencies and governments employ professional inspectors who can issue COs.
Typically, when you want to apply for a CO, you will hand in a submittal package. For example, it might include:
When you apply for a CO, expect to pay separately for plan checks and permits. Typically, the fees depend on factors such as type of construction, type of occupancy, and square footage. After the building department checks and approves your plans, you’ll receive your permits to begin work. You will have to schedule inspections for construction milestones, such as:
Ultimately, after passing the final inspection, the utility company will release the electrical meter and you’ll receive your CO.
It’s important to know that different cities, towns, and rural areas can have different certificate of occupancy requirements. Generally, the top certificate of occupancy requirement is to conform with all building codes. Also, you must pay all fees and pass the final inspection.
You will need a CO under several circumstances, including:
Before final inspection, you will have to clear many permitting hurdles, such as:
Inspectors may discover problems that prevent them from issuing a CO. Specifically, these problems are situations where the property does not conform to safety or building codes. Doubtlessly, the inspector will provide you with a list of required corrections to bring you into conformance. Moreover, the list will include a deadline, such as 60 days, to correct all deficiencies. Then, when you fix all the problems, you will call for a re-inspection and pay a new fee. Inevitably, if/when you pass, you’ll receive your CO.
If you proceed without a required CO, expect a fine or lawsuit from the local government. Daily fines can accrue until you obtain your CO.
Sometimes, governments issue a temporary certificate of occupancy when a property must resolve only a few minor items. A temporary certificate of occupancy can help builders receive the final construction loan installment. Tenants can begin moving into the property when it receives a temporary CO.
Use the following links for city-specific resources for obtaining a CO:
Usually, once you pass final inspection, you can receive your CO within a week, perhaps sooner. However, some cities are notorious for slow service, so you will need more patience in those locales. Possibly, you may be able to pay a fee to expedite receipt of your CO.
Commercial properties, and often residential properties, require a CO under various circumstances. These include new construction, reconstruction, repurposing, and change of ownership. Once you receive a CO, only then can occupants occupy the property.
A state, city, county, or other local government agency may issue COs. Frequently, it’s the local department of buildings and safety. Naturally, the locally certified building inspectors must first approve your final permit before you can receive a CO.
Fees vary from one location to the next, but $250 is a good estimate. Typically, you’ll pay a fee for plan checking and additional fees for each inspection. If you fail an inspection, you may have to pay another fee for reinspection.