What is a Certificate of Occupancy (CO)?

A Certificate of Occupancy is an official document issued by the local municipality's building department confirming that a structure has been built — or modified — in compliance with all applicable state, county, and local building codes, and that the space is legally permitted for occupancy or use. It is typically required after new construction or significant renovations, and lenders often require a valid CO before issuing a mortgage.

In the Western Catskills, CO issues are a frequent topic in real estate transactions. Delaware, Greene, Ulster, and Otsego counties have a large stock of older homes, barns converted to living spaces, and rural structures where work may have been done over the decades without proper permits. It is not unusual to encounter a property where additions, finished basements, or outbuildings lack a CO or were built without a permit. This can complicate financing and require remediation before closing. Buyers should always ask their attorney and inspector to confirm the CO status of any improvements, and sellers should address outstanding permit issues before listing when possible.