Certificate of Occupancy-- what's the deal? (insurance, appliances, attorney)

[kgari]

As I'm looking at different houses, I see that some don't have a c/o for a part of the house (especially finished basements). As a result ,the square footage is listed a great deal lower than the actual size of the house.

Would you recommend staying away from a house without a c/o?
Is that hard for a homeowner to get one after the construction has been completed? It seems in the homeowner's best interest to get one since it would greatly increase the overall value of the house. Do you find that many houses in Westchester sell for the assumed value of the house (if it had the c/o) rather than the true value (without the c/o)?

[cali_to_nj]

It has been my experience that people have work done on their home and don't get the C/O to avoid the tax increase, so once you buy the house the taxes will increase to match the actual square footage. Of course there could be other issues such unfinished work, no final inspection, etc.

[kgari]

Thanks for info. I guess I'm just nervous that, hypothetically, I would have trouble either getting insurance without a c/o, or worse, that the bank wouldn't let me close. On the other hand, a friend of mine has an entire house without a c/o. It seems so risky to me.

[flowergarden]

In today's market, most banks won't let you close without a CO. In the past, a large downpayment with respect to the cost of the house would allow a bank to close on the property. Now, no way.

[cali_to_nj]

Correct - we just closed on a house and in the beginning of the process the first thing my attorney did was pull permits and certs to make sure everything was above board, otherwise you are really taking a chance you will not get a mortgage.

[streetsmart]

We could not close on our house until there was a CO. And the builder couldn't get the CO until he put in the kitchen appliances (I believe the oven or maybe the fridge was key), which he let us choose.

We did see a house that had an unfinished room on the upper level and we were told there was no CO for that room. However, the builder said that we could negotiate to have it finished after we closed. It was weird to us. Just finish the room why don't ya?

[kgari]

If you ask the sellers to obtain the c/o (either before or after closing, or to put money in escrow for it), are you obligated to offer a higher price for the house than if you ignored the fact that the c/o is needed?

I was also the understanding that even if the basement is finished, it still can not be included in the overall square footage of the home. Is there ever a time when a finished basement can be included in the overall square footage? The reason why I ask is because it greatly increases the price of the home.

[mfenimore]

I thought if it had a C/O it could be included. We have been looking at homes with basements and they all include the basement in the sq footage

[dma1250]

Originally Posted by mfenimore

I thought if it had a C/O it could be included. We have been looking at homes with basements and they all include the basement in the sq footage

I am pretty sure that it depends on how far below grade level the basement is and on the size of the windows (for emergency egress). I think completely underground basements are never included, but if a room is only half below ground and has windows you could squeeze out of, then that counts as liveable square footage. But I could be wrong...and it could vary depending on the zoning rules of the specific town...

[kgari]

Good point. Some basements are hardly basements at all, with full doors to the outside. Not to mention, many people "fib" about overall square footage in listings anyway...