What you must know before purchasing a property

One of the biggest investments one can make is purchasing a home. However, you ought to ensure that you meet all the required guidelines and assess whether the purchasing process is authentic. In most areas, most local authorities will demand a typical home inspection process to obtain the certificate of occupancy. Nevertheless, to ascertain that you have met all the requirements, an additional inspection procedure is essential. Read on to be enlightened on this crucial, yet most ignored procedure.

Definition of a Certificate of Occupancy

The certificate is typically known as a Use and Occupancy (U&O) certificate. The certificate is awarded by most city council authorities’ centers indicating that the property is safe for habitation. However, not all Local Authorities issue the permits, although the building regulatory board issues them to property owners. It affirms that the building meets all the building codes and requirements. The permits are issued when the building is completed, and any further inspection may be necessary if the building changes hands.

Details of the Certificate of Occupancy inspection

The inspection covers various elements of the house such as electricity connection, smoke detectors in place, and installation of railings among others. The inspectors assess whether the installation is correctly done and all the building code requirements are followed to the letter. The professional inspectors will also assess all the other crucial home amenities such as the sprinkler systems and Heating appliances to ascertain they are in a perfect working condition.

Who bears the burden of the inspection process?

The sellers pay for the entire inspection process. Homebuyers should demand this inspection to ascertain the property they are buying is in perfect condition. The property agent will include the fee as part of the transfer fees before selling the home. Moreover, if the local authorities demand a further inspection process, the seller will pay for the total fees of the procedure. The local authorities can only award the permit when they are satisfied with the results from the inspectors.

Discover who pays for the house repairs

The involved parties will negotiate in the person who will be in charge of paying for the repairs once the results from the inspectors are out. The results should be out before the settlement process is complete. An agent from the local authorities is also sent to reinspect the property before they can issue this permit. If both parties are in agreement, a conditional Certificate of Occupancy is issued. However, if the parties are in disagreement, both the seller and buyer have equal rights to nullify the transaction.

An exception to the process

If the properties being disposed of are bank owed or (as is), then this is an exception to the above situation process. In the bank owed cases, once the buyer submits an offer, the buyer automatically takes responsibilities of the associated repairs and house demands. Thus, when purchasing a house, ascertain that you understand the entire process and also know the type of property you are acquiring.

A word of advice

The Certificate of Occupancy is not a requirement for homeowners. In some states, the landlords are also required to have the documents and conduct consequent inspection procedures. The requirement is necessary to ensure that houses remain in habitable conditions and do not get to the point of disrepair.

Before buying a house, it is crucial that you understand the laid requirements to ascertain that you get the real report of the house. That also saves you from losing your money from the process.

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