What is the function of a "certificate of occupancy"?

Prepare for the Colibri Real Estate Exam. Study with flashcards and multiple-choice questions, each with detailed hints and explanations. Get ready for your exam!

The function of a "certificate of occupancy" is to confirm that a building meets the necessary local building codes and is deemed safe for occupancy. This certificate is typically issued by the local government or building authority after a thorough inspection of the property to ensure it adheres to safety standards, zoning laws, and regulations.

The issuance of a certificate of occupancy is a critical step in the construction process, as it signifies that the property is fit for its intended use, whether it’s residential, commercial, or mixed-use. Without this certificate, a property cannot be legally occupied.

While other documents and certificates may serve different functions, such as appraisals, permits, or property sales records, they do not include the assurance of safety and code compliance that comes with a certificate of occupancy. Therefore, it is essential for tenants, owners, and buyers to verify that a property has received this certificate prior to taking occupancy.

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