A certificate of occupancy, or CO, is issued by the local building authority after final inspections confirm the structure meets all applicable building codes and is safe for occupancy. For residential construction, the CO typically requires completion of all required inspections, proper electrical and plumbing installations, HVAC systems, egress routes, and fire safety systems.
The CO is a hard requirement before customers can legally move into a home. For spec home sales, the CO must be in hand before closing. On construction loans, the final draw and retainage release are typically withheld until the CO is issued. Some jurisdictions issue a temporary or conditional CO pending minor punch list items, though most lenders require a full, unconditional CO before final funding.
Timeline varies by jurisdiction and inspection queue, but generally the CO is requested during final inspection and issued within 1-3 business days. Delays in the CO process are a common cause of project completion delays, especially when inspectors identify code violations requiring correction.