@Ned Carey, how could the homeowner stick it to the lien certificate holder?

I have other clients who have bought homes knowing there was an illegal rental unit in which they then want to make it legal to obtain a certificate of occupancy.

You can certify today that you will be the primary resident and then lose your job next month and have to move for a new job...things happen2) Have your Attorney review your Note and Mortgage documents to determine if some form of action by you is required should your residential status change...most of the time the answer is no3) The likelihood of a bank putting you in default when they are getting paid regularly is slim though I'd be doing a dis-service if I said they couldn't do that4) There is no "rule" as each lender's requirement is different...some are Self Certification Only, some are 6mths, some are 1yr and some are 2yrs...it just depends on the loan type and issuer...again, the exact language will be expressed in your Note and Mortgage and unless you committed fraud by saying you were going to live in the property and yet had no intentions at all, then most likely no issue exists5) There is no asking a bank for permission in my opinion...not sure if I know of any Residential Status Change Authorization Desk... 

Same with their other "certifications."

The health department will issue the following lead-safe certificates:-  Lead-Safe Certificate required for 1-4 unit residential rental properties and family child care homes constructed prior to Jan. 1, 1978.-  Lead-Safe Certificate is issued after passing a visual and dust wipe inspection.-  Lead-Safe Certificate is valid for five years, except where the property had undergone a full lead assessment, lead control performed by a lead licensed contractor, and a full clearance by a licensed lead assessor, in which case a 20-year certification is issued.There will be a five-year phase in by census tract.

(Only Powder Rooms) However, in Jersey City during a resale, only a fire certificate is required to close vs. acquiring a Certificate of Occupancy (CO).

Always require a septic certification as well as a pump inspection.

Lenders might also require you to obtain a certificate of standing/status from the state, which you can usually do on the same site and sometimes at the same time as you apply for the LLC. 

John Clarken,  I would love to chat with you about your ADU and how you feel about it.Hi Sidnee,The ADU is set to wrap up this week with hopefully Certificate of Occupancy before Thanksgiving.

City of Cleveland is cracking down on this and other requirements to include lead safe certification and status certification by zip code at varying calendar dates.