Certificate of Occupancy in New Jersey - Factor in the Cost When Bidding on Bank Owned Property

Sounds like NJ has some different requirements than we have in Virginia.  For a resale property hooked to county services a buyer doesn't have to get a C.O. unless it is new construction.  Inspections of well and septic are usually required by the lender but if a person is paying cash then it would certainly be buyer beware.

Good Information!  I can tell you first hand, that in northern michigan, where density is very low, people tend to overlook those details.  Don't assume a home has a certificate of occupancy, even if it appears the previous owners lived in it prior to losing it back to the bank. 

We have well inspections, water tests and septic evaluations that must be completed prior to passing ownership.  It is the responsibility of the seller to see that it gets down, not necessary for the seller to pay for the tests, but in most cases they do.  In Manistee county, this went into effect April 1 of 2009, and title companies help us force compliancy.  There is a steep fine if you don't do this right.

Hi Laura:

Absolutely!

This is one part that people tend to forget.

Great information.

Laura..I Have a client in New Hampshire who owns many apartments in New Jersey, He is constantly telling me about having to meet the city for a C/O, even if the tenant moved in broker his lease and left in two weeks the next tenant has to have a C/O before they can move in. Sounds like a way for city's and towns to generate fees.

In Texas the builder is the one responsible for obtaining the C.O. Normally this happens during the construction process when they reach "substantial completion". Substantial completion is when the house is built and 99% finished, awaiting the final punch-list of cosmetic items to be touched up.

Betina

Laura...We have the CO only for new construction.   $600 makes it even harder for the buyers.

Laura...We have the CO only for new construction.   $600 makes it even harder for the buyers.

Ouch!! Some buyers with minimal cash will not be able to do fulfill the sale. You're right people should use realtors because we try to stay up on the new and ever-changing laws that affect our industry. Good post.

You are right, town to town differences can be almost amazing! Just a smoke test in one town,  where right next door in the next town over, they may check everything under the sun. This knowledge is part of being a good agent in NJ.