What Is a Certificate of Occupancy?

A certificate of occupancy (CO) is a document issued by the local government confirming that a home meets building codes and is safe to live in. You should never close on a home without one.

The Short Answer

A certificate of occupancy (sometimes called a CO or C of O) is issued by the local building department after they inspect the completed home and confirm it meets applicable building codes, zoning requirements, and safety standards.

It confirms that the home is legally fit for people to live in.

Why It Matters

Without a CO, the home is not legally habitable. Your mortgage lender will not fund the loan, your homeowner's insurance may not be valid, and you could face legal issues if you move in.

The CO confirms that the home passed final building inspection — meaning the structure, electrical, plumbing, HVAC, and fire safety systems all meet minimum code requirements.

Temporary vs. Final CO

Some jurisdictions issue a temporary certificate of occupancy (TCO) when most of the work is complete but minor items remain (landscaping, exterior finishes, etc.).

A TCO allows you to move in while the builder completes the remaining work. However, if the builder never completes the work, you could be living in a home without a final CO.

If your builder asks you to close with a TCO, understand what work remains and get a timeline for completion in writing.

What to Do

Confirm that a CO has been issued before your closing date.

Ask for a copy of the CO — it should be available from the builder or the local building department.

Do not close without a CO or at least a TCO. If the builder pressures you to close without one, this is a major red flag.

If you close with a TCO, follow up to make sure the builder completes the remaining work and obtains the final CO.

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