A Certificate of Occupancy in New Jersey – Factor in the cost when bidding on bank owned property in NJ.
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.
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.
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.
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!
Laura Giannotta
Keller Williams Realty - Atlantic Shore
REALTOR-Associate®
e-PRO®, ABR®
609-384-6121
Laura@JerseyShoreViews.com
Representing New Jersey home buyers and sellers in southern Ocean County; Homes in Waretown, Homes in Barnegat, Homes in Manahawkin, Homes in Eagleswood, Homes in Tuckerton, Homes in Little Egg Harbor and Homes on Long Beach Island. You can also contact me about homes in northern Atlantic County; Homes in Galloway, Homes in Absecon, Homes in Mullica, Homes in Egg Harbor, Homes in Mizpah and Homes in Mays Landing.
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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.
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!
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
Betina, in NJ a CO is required for new contruction and then everytime the home is re sold!
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.
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!
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.