What is a Certificate of Occupancy?

A Certificate of Occupancy is issued by the town or municipal government after a structure undergoes inspections to ensure it meets the necessary standards for human habitation. It signifies that the structure is up to code and allows the builder/Seller to transfer ownership to the purchaser. It is important to obtain a Certificate of Occupancy for any additions or modifications made to the property in the future to avoid complications when selling the home. Failure to do so may result in the need for costly permits or even removal of the structure. Selling a house without the necessary Certificates of Occupancy can become a problem, as banks as well as buyers typically require them. Even if the work was done prior to the requirement of Certificates of Occupancy, it is still necessary to obtain them before selling the property. This may seem unfair, but it is the current state of affairs.