What is a C of O
What is a C of O? C of O means Certificate of Occupancy, which is a document issued by local government authorities to establish that a house or structure can be lived in and is in compliance with the safety and zoning standards of that region.
Often times, people mistake “Certificate of Ownership” for “Certificate of Occupancy.” These two documents are very different and serve different purposes.
Certificate of Ownership Vs Certificate of Occupancy
A Certificate of Ownership is way different from a Certificate of Occupancy. The Certificate of Occupancy is what is known as the C of O. A C of O (Certificate of Occupancy) is mostly issued by the local government authorities to certify that a building or structure has been examined and is safe to use or live in.
A certificate of ownership is a document used to certify the ownership of land or property. This document is very important during the transaction of properties. It serves as proof of transaction when buying or selling a property. It shows who the legal owner of a property is.
Importance of Certificate of Occupancy
The C of O holds various significance in the real estate and construction industries for various reasons, which include legitimacy, safety, assurance, valuation, insurance, resale, zoning, and property transfer.
Legitimacy
A C of O is a document that confirms that a structure has been built in compliance with the property and land use laws of a region or local government. These rules include zoning laws, building codes, and the intended use of the property.
Occupancy Assurance
A C of O also confirms that a property is safe to use. It verifies that the structure meets the safety rules and standards of that region, which are important for the well-being of the occupants.
Legal Requirements
A C of O is also a legal requirement that needs to be acquired before a property or structure can be put into use or occupied. It may be necessary to get utility services in some regions and from local governments.
Property Valuation
Having a C of O positively affects the value of a property during the process of resale or transfer of ownership. Properties with verifiable C of O are often times more costly compared to those without the document. Investors and buyers usually consider it as a proof that the structure was well constructed and already verified by the government.
Resale and Transfer
It is easier to sell properties with a certificate of occupancy than those without the document. It shows the property is well documented and can easily be sorted out in court should the need arise.
Zoning Laws
A C of O also confirms that a property is in compliance with land use rules and local laws. The document may include permissible laws in regards to the kind of structure built, its location and restrictions related to zoning.
Utility Applications
For a property to get connected to public or government utilities like water and electricity, a certificate of occupancy needs to be acquired because it confirms that the property is ready for use and habitable, therefore in need of those utilities.
Types of properties covered by C Of O
There are three main categories of properties that require a C of O before they can be habitable or in use. They include residential properties, industrial buildings, and commercial properties. All these categories of properties require a certificate of occupancy because they are actively being occupied by people who need to be protected by the government.
Components of a Certificate of Occupancy
So basically, a certificate of occupancy contains all major details about a property, which include the plot or parcel number, property address or legal description, building specifications, zoning or land use agreements, utilities services, compliance with the building code, occupancy classification, signature and seal, health and safety measures, date of insurance, and special conditions and restrictions.
In conclusion, a Certificate of Occupancy is a document that every property owner needs to have to be on the right side of the government.
