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

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

A Certificate of Occupancy in New Jersey – Factor in the cost when bidding on bank owned property in NJ.

payment (sxc)A Certificate of Occupancy in New Jersey or CO is issued by the municipality and is required to live in a home.  In a traditional sale the costs associated with obtaining a CO are borne by the seller.  However, if you’re purchasing a short sale or bank owned property this is usually the buyer’s responsibility.

The requirements to obtain a Certificate of Occupancy in New Jersey for a single family home vary from town to town.  However there are several state mandated requirements.  Those are carbon monoxide and smoke detectors, as well as a requirement that a fire extinguisher be mounted in the kitchen.

water (sxc)Another more costly requirement for a Certificate of Occupancy in New Jersey is well testing and certification.  Depending on the county, this can cost more than $600.  If treatment or additional equipment is required, the costs can escalate significantly.  Well testing and certification is not an option, it’s required by the state. 

shack (sxc)Requirements for a Certificate of Occupancy in New Jersey vary greatly.  The municipal building office in each community has the municipal requirements. That office will also let you know the cost of a Certificate of Occupancy inspection since it also varies from town to town.

In some municipalities in Ocean and Atlantic counties only the state mandated detectors, fire extinguisher and well test/certification are required.  However other communities require documentation from licensed contractors that the heating systems and chimneys are in good working order.  Some municipalities even check the seals on windows, or ask for a survey of the property.

KW

 

Familiarity with the requirements to obtain a Certificate of Occupancy is an important reason to find a qualified local REALTOR®.  If you have questions about obtaining a Certificate of Occupancy in New Jersey, particularly Ocean or Atlantic counties, feel free to contact me.

Keller Williams Realty – Atlantic Shore
Laura Giannotta
609-384-6121
Laura@JerseyShoreViews.com

 

GET YOUR OWN JERSEY SHORE VIEWS!


       

 
 
 
  

     
Comment balloon 12 commentsLaura Giannotta • October 12 2009 07:11AM

Comments

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.

Posted by Cindy Jones, Pentagon, Fort Belvoir & Quantico Real Estate News (Integrity Real Estate Group) about 9 years ago

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.

Posted by Lynda Beaton (Coldwell Banker A.L.M. Realty & Associates) about 9 years ago

ToulaRosebrock,com

Hi Laura:

Absolutely!

This is one part that people tend to forget.

Great information.

Posted by Toula Rosebrock, Broker/Sales Associate, Realtor, Lacey Township, (Diane Turton, Realtors, Forked River, NJ) about 9 years ago

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.

Posted by Steve Loynd, 800-926-5653, White Mountains NH ( Alpine Lakes Real Estate Inc., ) about 9 years ago

Cindy, we have very strict well testing guidelines in NJ.

Lynda, in NJ the seller will usually pay for the well cert, but REOs almost never and short sales it's a negotiation.

Hi Toula, you've got it easy in Lacey LOL!

Yep, we need CO's for every rental and if you have a multi family unit the requirements are even more intense!  

Posted by Laura Giannotta, Your Realtor Down the Shore! (Keller Williams Realty - Atlantic Shore ) about 9 years ago

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

 

Posted by Betina Foreman, Realtor, C.N.E., with WJK REALTY (WJK Realty) about 9 years ago

Betina, in NJ a CO is required for new contruction and then everytime the home is re sold! 

Posted by Laura Giannotta, Your Realtor Down the Shore! (Keller Williams Realty - Atlantic Shore ) about 9 years ago

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

Posted by William Feela, Realtor, Whispering Pines Realty 651-674-5999 No. (WHISPERING PINES REALTY) about 9 years ago

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

Posted by William Feela, Realtor, Whispering Pines Realty 651-674-5999 No. (WHISPERING PINES REALTY) about 9 years ago

William, I had a buyer agree to take care of the well test and certification a few months ago, it ended up costing nearly $2,000 for testing, remediation and retesting!

Posted by Laura Giannotta, Your Realtor Down the Shore! (Keller Williams Realty - Atlantic Shore ) about 9 years ago

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.

Posted by Robert L. Brown, Grand Rapids Real Estate Bellabay Realty, West Mic (www.mrbrownsellsgr.com) about 9 years ago

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.

Posted by Stephen Kappre, Helping You Home (KW Hometown) about 9 years ago

Participate