A certificate of occupancy (CO) is a municipal document confirming a building meets local codes and is approved for occupancy. In Pennsylvania, when a CO is required it must be obtained before a buyer moves in or a property changes use, and the obligation belongs to the seller unless the contract says otherwise.
What a Certificate of Occupancy Is
A certificate of occupancy, often called a CO, is a document issued by a local municipality confirming that a building complies with the applicable codes and is legally safe to occupy. The building department inspects the structure, systems, and use, and issues the CO once everything passes. New construction almost always needs one; whether resale homes do depends on the municipality.
The CO is a snapshot, not a lifetime promise. It certifies the condition at the time of inspection, for the use stated on the certificate. If a homeowner later converts a garage into a bedroom or changes a single-family home into a duplex, the old CO no longer covers the new use, and a new certificate or permit is required.
When Pennsylvania Buyers Meet the CO
Pennsylvania municipalities differ widely on certificates of occupancy. Philadelphia requires a use and occupancy permit for many transfers and for any change in use or tenant. Many boroughs and townships in the surrounding counties require a CO at the time of sale, while others issue one only for new construction and do not require one for a resale of an occupied home.
Because the rules vary from town to town, the CO question should be answered before the contract is written. Your agent or the township building office can confirm whether the municipality requires a resale CO, what the inspection covers, and how long it takes. Missing a required CO can delay closing while the seller scrambles for an inspection slot.
Who Pays and Who Gets It
The default in most Pennsylvania municipalities is that the seller obtains the CO and pays for it, and the buyer receives it before or at settlement. The standard Agreement of Sale and local custom usually make occupancy certification a seller obligation, though the contract can assign it either way. Buyers should read the contract to see which party carries the CO duty.
The CO inspection itself matters. The municipality checks smoke detectors, egress, electrical and plumbing safety, and sometimes the exterior condition. Older homes often need small fixes to pass: a missing handrail, a smoke detector without a battery, a cracked stair. Sellers should not wait until the week of closing to schedule it.
What the Inspection Can Reveal
The CO inspection can surface issues that the home inspection would not flag as deal breakers but the municipality treats as safety code violations. Unpermitted work is the classic example: a finished basement or added bedroom without a permit can fail a CO inspection and force the seller to get permits retroactively or remove the work.
For buyers, the timing is the risk. If the CO is required and the home cannot pass, closing stalls. Ask early whether the home has permits for any visible renovations, and let the CO inspection be part of the seller's closing checklist. An agent with local experience knows which township inspectors are strict and what the common failures are.
COs for New Construction and Rentals
New construction must have a CO before anyone can legally occupy the home, and buyers of new builds should confirm the CO is issued (not just the inspection scheduled) before taking the keys. The builder's process varies, and a delayed CO is a classic new-construction closing delay. Buyers of rentals, and landlords, deal with the same document in reverse: Philadelphia and many towns require a valid CO or rental license before a unit can be rented out.
Whether you are buying, selling, or renting, the question is the same: does your municipality require occupancy certification for this property and this use? The answer shapes the timeline and who signs what at closing.
Key Takeaways on Certificates of Occupancy
The CO question is decided by your municipality, and the answer sets expectations for the closing timeline. Keep this checklist moving.
- Ask early: confirm with your agent whether the township or borough requires a resale CO
- Check permits: unpermitted renovations are the most common reason a CO fails
- Schedule ahead: inspection slots fill up, so sellers should book the CO check early
- Plan for small fixes: smoke detectors, handrails, and egress items are the usual failures
- Know the buyer rules: confirm whether the CO is required before move-in or only at change of use
New construction buyers should verify the CO is actually issued, not just scheduled, before taking the keys. The same applies to rental buyers: a CO or rental license must be valid before a unit can lawfully be rented out.
Smarty's Advice Expert Insight
John Smart (Smarty) · Smarty Home Solutions / eXp Realty Agent, AI Certified Agent
Ask about the CO in your first conversation with your agent, not at closing. Sellers: schedule the CO inspection early and fix the small stuff. Buyers: make the CO a checklist item and confirm permits exist for any renovation.
John Smart, AI-Certified Agent with eXp Realty knows which Philadelphia-area municipalities require certificates of occupancy and helps sellers get the paperwork done on time. Call 215-598-6848 or schedule a free consultation. No obligation, just straight answers.