In my last post I discussed the prpose of having a Certificate Of Occupancy, this posst will focus on the effects of not having one. A purchaser might find the following:
1) The improvements do not comply with setback requirements set by the local zoning board. This will result in the need for them to be moved or made the subject of applications to the Zoning Board Of Appeals for Variances. A variance is permission obtained by from zoning authorities to build a structure or conduct a use that is expressly prohibited by the current zoning laws.
2) The improvements may not have been made in accordance with the building code and may need to be upgraded. You will know once an inspector has looked at the work. For example some municipalities require a permit to gut renovate a kitchen because they want to make sure the structural integrity of the building hasen't been compromised and that any plumbing and electrical changes are up to code.
3) The improvements may never be the subject of a Certificate Of Occupancy without the expansion of septic fields which may or may not be able to be improved or expanded upon. For example if you want to add a 4th bedroom to a 3 bedroom home you may have to increase the septic tank size, there are cases where homes may already be approved.
4) The property has been under-assessed baed upon its actual improvements and upon compliance with all of the rules with respect to obtaining Certificate of Occupancy, therefore there is likely to be a substantial increase in property taxes.
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