Certificate of Occupancy (CO): A document issued by a local government certifying that a building or portion of a building complies with applicable codes, has passed all required inspections, and is approved for occupancy.
When a Certificate of Occupancy Is Required
A CO is required for new construction before the building can be legally occupied, and for major renovations or additions that change the structure's occupancy classification or use. It is also required when a property changes use — converting a commercial space to residential, for example, or converting a garage to an ADU.
Simple renovation permits for work within an existing structure (a kitchen remodel, a bathroom update) typically result in a permit being "finaled" rather than a new CO being issued, since the occupancy classification hasn't changed.
The Difference Between a CO and a Final Inspection
A final inspection is the last scheduled inspection for a permitted project, where an inspector verifies all work is complete and code-compliant. A Certificate of Occupancy is the document issued after the final inspection passes for projects involving new construction or occupancy changes. Not all final inspections result in a CO — only those for projects that require one.
Temporary Certificate of Occupancy (TCO)
A TCO allows a building to be occupied before all work is fully complete, typically when minor outstanding items don't affect safety. TCOs are common in large commercial and multifamily projects, and sometimes in residential new construction where landscaping or minor finishes are incomplete. TCOs have expiration dates and must be converted to a permanent CO before they expire. See our full entry on Temporary Certificate of Occupancy.
CO and Real Estate Transactions
Lenders typically require a CO before funding a mortgage on new construction. Title companies and buyers' attorneys routinely check for COs during real estate due diligence. A missing CO on a renovated or converted property can delay or kill a sale. If you're buying a property with recent construction or conversion, verify the CO exists before closing.