Are you Planning to Transfer, Buy, or Sell a Residential Property?

This is What You Need to Know

Not many people know the process behind closing a real estate transaction. Part of this process includes a re-occupancy inspection and a re-occupancy certificate.

What does the Re-Occupancy Inspection entail?

The inspection is completed to ensure that the property is in compliance with the city regulations you are planning to transfer, buy or sell the property. These inspections are done to ensure that the property is in compliance with the city’s original zoning regulations. In other words, if the zoning of the property is only for single-family homes, it will be unlawful to use the property for other purposes than stipulated. Keep in mind these inspections are not to check structural, plumbing, electrical, or mechanical issues of the property.

What is a Re-Occupancy Certificate?

The re-occupancy certificate is crucial during the closing process. It verifies that the property is habitable and that no alterations have been made. Both seller and buyer are responsible for obtaining a re-occupancy certificate before the closing phase.

When should you obtain a Re-Occupancy Certificate?

As soon as you receive a conditional approval letter. This conditional approval letter verifies that the loan you are requesting for the property has been approved. Please note, as the letter states, it is CONDITIONAL, which means that the approval comes with certain conditional agreements that the individual receiving the approval needs to keep in mind.

ATTENTION REALTORS!

If you notice that there is nothing on the conditional approval letter that is questioning the income of your client, go ahead and request the Re-Occupancy Certificate.

Where should I obtain a Re-Occupancy Certificate?

These Re-Occupancy Certificate requirements may vary according to city regulations. So if you are under contract and do not want to delay your closing process, check with the local city purchasing office and make sure whether you might need this certificate of re-occupancy.