Certificate of Occupancy

A Certificate of Occupancy (CO or CoO) is an authorization issued by a local government building department certifying that a building complies with all building codes and zoning laws and is safe for occupancy. It is required before a property can be legally occupied or used for its intended purpose, like an office building.

A Certificate of Occupancy is critical for ensuring a building is safe, legally compliant, and ready for use. Whether for new construction, major renovations, or a change in use, obtaining a Certificate of Occupancy is an essential final step in the building process. By understanding the purpose, process, and importance of a Certificate of Occupancy, property owners and occupants can ensure they meet all legal requirements and enjoy peace of mind in their new or renovated spaces.

• Safety Certification: Ensures a building meets all safety standards and building codes. Must be obtained before occupying a new or renovated building.
• Zoning Compliance: Confirms the property is used according to local zoning laws.
• Change of Use: Required when changing the building's function (e.g., residential to commercial).
• Ownership Transfer: Depending on the state, a Certificate of Occupancy may be needed during the sale or lease of a property to verify compliance.

A Certificate of Occupancy serves several vital purposes:

1. Safety Assurance: Verifies that the building is safe for occupancy and meets all local building codes & standards.
2. Zoning Compliance: Confirms that the building's use is permitted under the local zoning laws.
3. Legal Occupancy: Provides legal permission to occupy the building, whether for residential, commercial, or other uses.

When is a Certificate of Occupancy Required?

• New Construction: Before any new building can be occupied, a Certificate of Occupancy must be issued to confirm it meets all building and safety codes.
• Major Renovations: Significant alterations to an existing building often require a new Certificate of Occupancy to ensure the changes comply with current standards.
• Change of Use: When a building's use changes (e.g., from a warehouse to a retail store), a new Certificate of Occupancy is required to ensure the new use complies with zoning regulations.
• Property Transfer: In some jurisdictions, a Certificate may be required during the sale or lease of a property to ensure the building is safe and legally compliant.

How to Obtain a Certificate of Occupancy

Each municipality will have its own variation of the submission process, but generally, an owner will:

1. Application: Apply to the local building department. This usually includes providing basic information about the property, its intended use, and the recent construction or renovations. If undergoing a large construction project, you're likely already in the middle of a submittal process, and the Certificate of Occupancy will be one of the project's final steps before utilizing the space.
2. Inspections: The building department conducts various inspections (e.g., electrical, plumbing, fire safety) to ensure the building complies with applicable building codes. Again, these inspections may have been done concurrently with the construction work, and a final habitable inspection at the end of the project will be done for the Certificate of Occupancy. Make sure never to close up interior inspection items before someone from the city comes out, or you will be responsible for the cost of opening things up and repairing them after an inspector has a firsthand view.
3. Approval: Once the inspections are completed and the building meets all requirements, the building department issues the Certificate, officially permitting occupancy. Maintain thorough records of all associated permits, inspections, and the newly issued Certificate of Occupancy for future reference and legal protection.

Importance of a Certificate of Occupancy

• Legal Protection: Provides legal assurance that the building is safe and compliant with local laws, protecting both property owners and occupants. It is also unlawful to operate a business in or rent out a space that does not have a Certificate of Occupancy.
• Marketability: Enhances the property's value and marketability by proving it meets all safety and zoning regulations and can be occupied immediately.
• Insurance Compliance: Many insurance companies require a Certificate of Occupancy before providing any coverage for a property.
• Avoiding Penalties and Liability Issues: Occupying a building without a Certificate can result in fines, legal actions, or orders to vacate the property. Patrons injured in a space without a Certificate of Occupancy also have legal grounds for continued liability action.

Validity and Renewal

Once work is completed, Certificates of Occupancy do not need to be renewed unless additional construction changes are made in the future, in which case you'd re-apply after the new changes are made. But remember, you may have other business permit requirements you need to renew with different departments of your municipality (e.g., business license, rental property license, etc.).