Should I Close on a Home Without a Certificate of Occupancy?

No. A certificate of occupancy (CO) confirms the home meets building codes and is safe to live in. Your lender will not fund the loan without one, and moving in without a CO can create legal and insurance problems.

The Short Answer

Never close on a new construction home without at least a certificate of occupancy or temporary certificate of occupancy. A CO is issued by the local building department after the home passes final inspection — it is the government's confirmation that the home is safe and code-compliant.

What Happens Without a CO

Your mortgage lender will not fund the loan — closing cannot happen. Your homeowner's insurance may not be valid. You could face legal issues for occupying a home that has not been approved for residential use. If the home never receives a CO, you may be living in a structure that does not meet building codes.

Temporary COs

A temporary certificate of occupancy (TCO) is issued when the home is substantially complete but minor items remain (landscaping, final grading, exterior finishes). A TCO allows you to close and move in.

If you close with a TCO, make sure you understand what work remains and when it will be completed. Get a timeline in writing. Follow up to ensure the builder completes the work and obtains the final CO.

Red Flags

If the builder pressures you to close before a CO is issued, this is a serious red flag. It may indicate construction problems, failed inspections, or permitting issues.

If the builder offers a TCO but the remaining work is significant (not just minor exterior items), proceed with caution.

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