Buying A Renovated Home? Verify the C of O

If you are buying a recently renovated or modified home, verifying the issuance of a Certificate of Occupancy (“C of O”) may be one of the more critical items on your due diligence list.  The purpose of a C of O is to ensure that a seller has properly conformed to construction codes, zoning regulations, and other laws.

A C of O is not related to “title” and thus your title company will not be responsible for confirming the issuance of a C of O.  Rather, it is incumbent upon you, the homebuyer, to request from the seller or search for an issued C of O.

Certificate of Occupancy in the Contract

The GCAAR regional sales contract refers to the C of O in the form of an acknowledgment, to wit:

The parties acknowledge that, under certain circumstances, when a property is substantially renovated or modified or its usage is changed, a Certificate of Occupancy or a Final Inspection Certification may be required prior to use and occupancy of the property. Additional information on these requirements can be obtained at https://code.dccouncil.us/dc/council/code/sections/6-641.09.html for properties located in the District of Columbia and at https://codelibrary.amlegal.com/codes/montgomerycounty/latest/montgomeryco_md/0-0-0-3515#JD_8-28, for properties located in Montgomery County, MD. In the event a local authority requires the issuance of a Certificate of Occupancy or a Final Inspection Certificate, the Seller agrees to provide evidence thereof.

How to Verify

Verifying the issuance of a C of O can be done with relative ease with most jurisdictions providing an online database for search.  For example, in the District of Columbia, one can search a particular property or seller name for status of a C of O and permits by using their online Department of Business eRecords system – DOB eRecords (Electronic Records Management System) (dc.gov). Similarly, the Department of Permitting Services for Montgomery County, Maryland offers an online database for search – Online Application Search (montgomerycountymd.gov) .

Again, the sales contract obligates the Seller to provide evidence of a C of O for newly renovated or modified property but, as the homebuyer, remember to ask for it and verify its issuance before the attorneys at Federal Title see you at the closing table.

Todd Ewing

Todd Ewing is an entrepreneur and attorney. After receiving his law degree from Drake University, Ewing left his home state of Iowa for opportunity in the Capital Region.He launched Federal Title & Escrow Company in 1996. The company that began on a piece of plywood strewn across a couple of sawhorses in a tiny office in Tenleytown had a unique premise: Give back to homebuyers what other title companies kick back to their referral sources.The innovative REALCredit™ distinguished Federal Title from its competitors and helped move Federal Title to the top echelon of independent title companies in the United States.A perennial trail blazer, over the years Ewing has also introduced one of the title industry’s first paperless closing workflows and a mobile app known as Close It! that was first to pinpoint for buyers, sellers and agents exactly how much cash would traverse the closing table during settlement.Ewing is an active outdoorsman who enjoys golf as well as hunting and fishing.

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