A certificate of occupancy (CO) is a document issued by a local government building or zoning department confirming that a building complies with all applicable building codes, zoning regulations, and safety standards, and is suitable for human occupancy. The CO serves as official confirmation that the property has been inspected and meets the minimum standards required by law. For new construction, a CO is required before anyone can legally move into the building.
The CO process typically begins when the builder or contractor requests a final inspection from the local building department. The inspector verifies that all permitted work has been completed according to approved plans and applicable codes — checking structural integrity, electrical systems, plumbing, fire safety, accessibility, and other requirements. If the property passes inspection, the CO is issued. If deficiencies are found, the builder must correct them and request re-inspection before the CO is granted.
For existing homes, a CO may be required in several situations. Some municipalities require a new CO (or a certificate of compliance/continued occupancy) whenever a property is sold. This ensures that the property still meets current safety standards, even if it was built decades ago under different codes. A CO may also be required when significant renovations are made, when a property's use changes (such as converting a single-family home to a duplex), or when additions are built.
Lenders typically require proof of a valid CO before funding the mortgage. If a property lacks a valid certificate — for example, if unpermitted work was done — it could delay or prevent closing. This is why reviewing permit history is an important part of due diligence. Unpermitted additions, converted garages, or enclosed patios without proper permits can create significant problems at closing and may affect the property's appraisal value.
During the closing process at Beycome Title, our team verifies CO status as part of our standard review. If a CO issue is identified, we work with all parties to find a resolution — whether that means obtaining the certificate, negotiating repairs, or adjusting the closing timeline. For new construction closings, we coordinate directly with the builder to ensure the CO is in hand before scheduling the closing date. Learn more about the closing process in our closing guide.