A certificate of occupancy, often shortened to CO, is a document a local building department issues confirming a structure has passed final inspection and is legally safe to occupy.
It’s typically required for new construction and for renovations that change a building’s use, such as converting a garage into living space.
What Does Getting a Certificate of Occupancy Require?
- Completion of all permitted work
- Passing final building, electrical, and plumbing inspections
- Confirmation that life safety systems, like smoke detectors, are installed
- Verification the structure matches approved plans
Why Is a Certificate of Occupancy Important?
Lenders often require a CO before releasing a construction loan’s final draw, and buyers’ attorneys check for one during closing on new construction. Without it, insuring or legally occupying a new building can become complicated, and a homeowner who moves in early risks fines if an inspector later flags outstanding issues. It’s essentially the final confirmation that a building is both complete and safe.
Certificate of Occupancy vs. Building Permit
A building permit authorizes work to begin, while a certificate of occupancy confirms it’s finished and safe to use. A project can have an active, valid permit for months during construction without yet qualifying for a CO, which only comes after everything passes final inspection. Renovations that don’t change occupancy use, like a kitchen remodel, typically don’t require a new CO even though they still need permits.