Certificate of Occupancy (CO): what it is and why it matters for a building

Answer

Intro: A building occupancy certificate — commonly called a Certificate of Occupancy (CO) or occupancy permit — is an official document from your local building or zoning department that confirms a structure meets applicable building codes and is legally approved for a specified use (residential, commercial, assembly, etc.). Requirements and names vary by city and county, so the practical effect depends on local rules.

Main details: Authorities typically issue a CO after construction or major renovation finishes and inspectors verify life-safety systems, plumbing, electrical, egress, fire protections and zoning compliance. Municipalities also often require a new CO when a building changes use (for example, office → residential) or when ownership or tenancy for commercial/multifamily property changes. A CO proves the space is suitable to occupy under current codes.

Temporary and final certificates: jurisdictions may grant a Temporary Certificate of Occupancy (TCO) that allows limited or phased occupancy while the owner finishes non-critical punch-list items; a final CO follows when all conditions meet the approved plans. TCOs commonly have expiration windows (often 30–90 days) and can sometimes be renewed under documented conditions.

When a CO matters for transactions: lenders, title companies and local code officials often require a CO to close a sale, issue a mortgage, or open a business. Occupying or leasing a property without a required CO can trigger fines, stop-work orders or insurance and financing complications — and may affect resale or lease negotiations. Because practices differ, confirm the local department’s checklist before closing or leasing.

Practical steps:

• Contact the local building or zoning office to confirm whether a CO is required for your project or transfer and to get the inspection checklist.
• Request copies of the issued CO (temporary or final) and any related approvals before signing leases or completing closings.
• Document outstanding items in writing when a TCO is in place and set a clear timeline for completion.

Bottom line: a Certificate of Occupancy is the local authority’s confirmation that a building’s use and condition meet applicable codes — it’s often required to legally occupy, lease, finance or sell space. Because rules and timelines vary by city and state, it’s advisable to check with the local building department and, if needed, consult a licensed local attorney or experienced real-estate professional before relying on occupancy status for transactions or business openings.