Definition
A Certificate of Occupancy is the official document issued by local government after final inspections confirm code compliance and the home is safe for occupancy. Without a CO, you can't legally occupy the home. Many lenders require it before releasing final loan proceeds.
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A Certificate of Occupancy (CO) is issued after final inspections confirm code compliance and all required work is complete. The CO authorizes residents to occupy the home and enables utility connections and final financing. Without a CO, a home cannot be legally occupied. The CO certifies that construction meets all applicable codes and regulations. Many lenders require a CO before releasing final loan proceeds.
Pro Tip
Do not close or move in without a Certificate of Occupancy. It protects your investment and satisfies lender and insurance requirements.
Example
After final inspections pass, the local building department issues a Certificate of Occupancy, allowing the new homeowners to move in and turn on utilities.