What Is a Temporary Certificate of Occupancy (TCO)? | BuildPermitGuide Glossary

A TCO allows a building to be occupied before all construction is complete, provided the outstanding work doesn't affect safety.

Updated April 2026 Glossary Term

Temporary Certificate of Occupancy (TCO): A time-limited authorization allowing a building or portion of a building to be occupied before all construction is fully complete and a permanent Certificate of Occupancy can be issued, provided the incomplete items do not create safety hazards.

When TCOs Are Issued

TCOs are common in new construction and large renovation projects where minor outstanding work — landscaping, finish carpentry, punch list items — remains but the building is otherwise safe to occupy. They're also used in phased occupancy of large buildings, where one floor or unit can be occupied while others are still under construction. TCOs are less common in simple residential renovation permits, where the full permit is typically finaled rather than TCO'd.

TCO Requirements

To receive a TCO, the building must meet all life-safety requirements: fire suppression and alarm systems must be operational, egress paths must be clear and functional, electrical systems must be fully connected and safe, and no structural hazards can exist. The outstanding items must be minor and non-safety-related. Some jurisdictions require a performance bond or cash deposit to ensure the outstanding work will be completed.

TCO Duration and Renewal

TCOs are issued for a specific period, commonly 30–90 days. If the outstanding work isn't completed and the permanent CO obtained before the TCO expires, the building must be vacated. TCOs can sometimes be renewed, but repeated renewals are not always granted. Building departments track TCO expirations and may issue violation notices when they lapse.

Converting a TCO to a Permanent CO

Once all outstanding work is completed, a final inspection is scheduled. When the inspection passes and all items on the TCO conditions list are resolved, the building department issues the permanent Certificate of Occupancy and the TCO is superseded.

Frequently Asked Questions

Many lenders will fund a mortgage against a TCO, but not all. The lender's requirements depend on the specific outstanding items and their own underwriting policies. Some lenders require a permanent CO before funding. Check with your lender early in the process.
If a TCO expires before a permanent CO is obtained, the authorization to occupy the building lapses. Continued occupancy after TCO expiration is a code violation. The building department may issue a vacate order. Contact the building department before expiration to discuss renewal or the status of outstanding items.
No. A CO is permanent and confirms the building fully meets all requirements. A TCO is temporary and acknowledges the building is substantially complete but has outstanding items to be resolved. For most practical purposes they function similarly, but a permanent CO is always preferable.
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