Having No COs Can Hurt the Sale of Your Home

Having No COs Can Hurt the Sale of Your Home

A CO means Certificate of Occupancy. When you receive one this means that the town/village says you're in compliance with their building codes and the dwelling is suitable for occupancy.

So what happens if you don't have a CO when selling your home? Sellers are responsible for getting a CO. If not, then buyers are faced with getting one themselves, but most banks want a CO in place before closing. The seller can place money into an escrow account for the buyer providing their bank approves that. The amount of money is usually negotiated between the seller and the buyer.

Some won't get a CO because it'll raise their property taxes. When buyers are buying a home and they find out some improvements don't have a CO, they may not buy the house at all because those improvements will raise the property taxes, and no one knows by how much until the CO is issued and the home is reassessed.

A perfect example: I had a buyer who fell in love with a home. As we were walking around I noticed a garage conversion, a kitchen extension, a half bath and a deck present. Afterward they wanted to give an offer. I was told by the listing agent those four items needed COs! I did tell my buyers that no matter who gets the COs, the property taxes will go up, and no one knows by how much until the home is reassessed once the COs are in place. One CO isn't an issue but...four? That's a big deal. My buyers walked away, and the home is still on the market more than a year later. Get a CO from the start, and you won't have that issue.

When You Need a CO for Your Home:

• Room Additions including bathrooms in basements.
• Kitchen and bath remodels especially when you're relocating plumbing and electrical work.
• In-ground and above-ground pools.
• Sheds larger than 10x10.
• Garage conversions (turning garage space into living space).
• Second kitchen.

Call the Town of Babylon to get a complete list of what improvements need a CO: 631-957-3000.

Editor's Note: Here's the number for the Village of Lindenhurst Building Department: 631-957-7510. Check with your local town or village government for the specific building department pertaining to your community.