CO (Certificate of Occupancy)

Category: legal

A document issued by a local government agency certifying that a building complies with applicable building codes and is safe for occupation.

The CO is the "finish line." A developer cannot legally let a tenant move in, and a tenant cannot legally open for business, until the city issues the CO. Delays in getting the CO (due to failed fire or electrical inspections) can trigger massive financial penalties in commercial leases.

Common Examples

• The grand opening was delayed by two weeks because the fire marshal refused to issue the final Certificate of Occupancy.
• Commercial leases usually stipulate that the tenant’s obligation to pay rent does not begin until the landlord delivers the Certificate of Occupancy.