Newly constructed homes are both scary and exciting at once. The property needs to meet a number of requirements in order to obtain a Certificate of Occupancy (CO), which keeps your interests protected.
The home must be inspected by a representative of your regional government. They will make sure that all essential building codes are followed. The regional government establishes such codes to safeguard properties. The following article sheds light on the inspection process, the certificate issued, and the way your loan affects it.
The government will need to inspect your home before they officially issue you a CO. This isn’t the same thing as home inspections on existing properties. The home inspector will make sure that all the work conducted follows local building regulation codes. Some of the areas they concentrate on include:
• Making sure fire sprinkler systems are all functional.
• Making sure HVAC systems are all functional.
• Making sure the chimney is functional.
• Making sure all contractors have the appropriate permits to conduct their work.
• Making sure each safety requirement the city established is met.
• Making sure electrical work is properly wired.
• Making sure fire codes are followed.
WHAT HAPPENS IF A HOME FAILS THE INSPECTION?
This happens more often than you think. Homes fail inspections during the first round all the time. This doesn’t necessarily mean that closing on a home is not possible – approval is contingent on the violation depth. In several instances, inspectors offer a Temporary Certificate of Occupancy.
This option is offered by inspectors for small issues that will not impact the livability or safety of the home. An inspector provides the builder with a certain period of time for the issues to be fixed. The reason a temporary certificate is issued is to establish if a lender can close on a loan. For the most part, the CO is what the lenders want before a loan can be closed. They want your home to be safe before you move into it, and that entails following city requirements.
MORE REASONS FOR HAVING A CERTIFICATE OF OCCUPANCY
Generally, a CO is only required by city officials when a home being constructed is brand-new. With that said, if one or more of the circumstances below are applicable to you, then a CO might be necessary:
• The home warrants repair after a natural disaster, including fires.
• A conversion of the building is desired.
• The current home needs to undergo extreme renovations.
A Certificate of Occupancy might come across as another hoop to jump through when purchasing a property, but it is intended to keep you protected. A CO makes sure that the property is safe for you to live in. That is not to say that builders break city rules or cut corners. It simply takes into consideration that builders are as human as you are – and they are just as capable of mistakes as everybody else. Home inspections ensure that a building follows city codes and are inhabitable.