Buyer responsible of Certificate of Occupancy question

[Jefferson Gan]

Hi All,

I want to ask if buying a house as-is and buyer is responsible for Certifcate of Occupancy (COO). How will repair work out since this COO needs to be done prior to closing and even before loan is approved? If anyone also has experience of Buyer getting a COO in Freehold Borough in New Jersey can you please share your experience. I saw in their website "The Inspectors review structural construction, plumbing, heating and air conditioning, and electrical work prior to the issuance of a certificate of occupancy to insure compliance with the State Uniform Construction Code."

By looking at that statement will that mean I need to repair everything that might fail the inspection? But issue is property is still owned by the Seller so how will that work?

Appreciate your comments or experience in buyer getting the COO.

Thanks -- Jeff

[Ceril S.]

With a cash deal - you can close in NJ with a temporary CO (that lists all the deficiencies that will need to be remedied within a specific amount of time)  Best thing to do is talk to the town about their process.  (definitely make the call, even if you don't think you will proceed on the deal because knowledge for the future if this arises again is important)  As far as I recall, my bank wouldn't close with a temp CO.  However, you could close with a "cash" deal from hard money, do the rehab, then refi with your bank after rehab and full CO.  Hope that helps.  We have gone in and installed smoke alarms and fire extinguishers on houses we did not own yet.