What does a Certificate of Occupancy signify?

A Certificate of Occupancy is a crucial document issued by local government authorities that signifies a property has met all building codes and safety regulations and has passed the necessary inspections. This approval ensures that the building is safe for occupancy and that it complies with all local zoning laws and building standards.

The significance of this document is paramount in real estate transactions because it assures prospective occupants, whether residential or commercial, that the property is ready for use and has been inspected for safety and legality by the appropriate authorities. This includes checks on structural integrity, plumbing, electrical systems, and compliance with health and fire safety regulations.

Other options, while important in various contexts, do not accurately describe the purpose of a Certificate of Occupancy. For instance, although a property may be prepared for sale, the certificate itself is not an indicator of readiness to sell. Similarly, payment of taxes is a separate obligation unrelated to occupancy certification, and loan approval pertains to financing rather than the verification of the property’s safety and readiness for occupancy.