Occupancy certificate or OC (also known as certificate of occupancy, CO) is a document issue by a local government agency (e.g. municipality) or building department / planning authority.
It indicates that a property is built in compliance with applicable general building codes, relevant regulations and laws¹. It also confirms that the building has been constructed in line with those specific building plans and specifications submitted to, and approved by, the local authority.
When is an occupancy certificate legally required?
An occupancy certificate is legally required whenever:
- A new property is built, or
- A building’s use is changed (for example: recycle from office to residential, or a significant overhaul/redevelopment of an existing structure)
When is an occupancy requested?
An OC is generally requested in these situations
- A property is being sold / purchased or financed (according to the terms of the due diligence or funding transaction), or
- A significant new lease is being signed, or an existing lease renewed – and the certificate must be valid for the use of the space or portion thereof, or
- When applying for utilities (e.g. electricity, water, and sanitation connections).
It is the property owner’s responsibility to obtain and pay for the occupancy certificate.
¹Detailed compliance – occupancy certificates
The criteria and process for issuance of an occupancy certificate vary widely across jurisdictions, and can be specific to the type of property. (For example, a certificate may not be required for single-family residences, duplexes, and townhouses less than four stories).
The provision of an occupancy certificate may involve some or all of the following processes:
- Evaluation of the development against the approved zoning
- Confirmation that the property is compliant with property safety requirements
- Physical inspection that the property is built in accordance with stamped and approved drawings and / or architectural plans
- Compliance with respect to plumbing, fire sprinklers / fire suppressant systems, fire alarm systems, electrical inspections, fire pump pressure tests, elevator and escalator infrastructure
