A Certificate of Occupancy (CO) is an official document issued by a local government agency stating that a property complies with applicable building codes and is safe for use. It confirms the structure’s legal use—such as residential, commercial, or mixed-use—and that it meets all necessary health and safety requirements.
This certificate is often required before a property can be rented, sold, or legally inhabited.
A Certificate of Occupancy is used when a new building is constructed, a major renovation is completed, or the use of a property changes. For real estate investors, obtaining this certificate is essential to avoid legal penalties and ensure the property can be marketed or leased without restrictions.
It also serves as assurance to tenants and buyers that the property has passed final inspections.
There is no numerical calculation for a Certificate of Occupancy. Instead, it’s granted after a series of inspections—including structural, plumbing, electrical, and fire safety—confirm that the property adheres to zoning laws and building codes.
The process typically involves applying for a final inspection through the local building department, correcting any code violations, and passing a walkthrough with an inspector.
Without this document, you may be prohibited from legally occupying or renting the space.
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