What is a Certificate of Occupancy? 

A certificate of occupancy is a document that states how the building can be used as well as how many families can be accommodated in the building. This certificate is vital when you are buying a property in New York City. This is because if you are intending, for example, to build units on the property that will later be rented, but the certificate of occupancy states the building is to be used for commercial purposes, you will not be allowed to and the bank will not approve a mortgage. 

This certificate is issued to property owners by the Department of Buildings, and it is necessary for all townhouses and apartment buildings. However, if your certificate of occupancy does not align with your plans for the property, you may seek to get a temporary certificate of occupancy. This certificate states that the building is safe to inhabit, however there is still work to do and permits or obtain before you can get an official certificate of occupancy. 

If you own a townhouse or an apartment building and are looking to make significant renovations, you want to ensure that your certificate of occupancy is updated to match these renovations. For example, if you intend on turning a one family townhouse into a two family townhouse, or building additional units in your apartment building. Any renovations that change the number of rooms or change the use of the building require a permit, which means they will likely also require you to update your certificate of occupancy. 

What Should You Do If Your Apartment Building Doesn’t Have a Certificate of Occupancy? 

On the other hand, if you are living in a building that does not have a certificate of occupancy, you have the legal right to withhold rent until the landlord addresses the issue. This is a dangerous situation to be in as you run the risk of the city issuing a vacate order, in which case you would be forced to find another apartment. If you are unsure whether or not your building has a certificate of occupancy, you can search through the city’s Buildings Information System. 

Additionally, if you are a renter who has signed a lease for an apartment in a new construction, there will likely be a clause in your lease stating that you have the freedom to back out of the purchase if the closing date does not happen by a set day. This means if the certificate of occupancy or the temporary certificate of occupancy is delayed beyond that set date, you are able to walk away from the deal and save yourself from the stress that may come from the possibility of the city ordering you to vacate.