Colibri Real Estate Practice Exam 2025 – Complete Guide to Prepare

A certificate of occupancy is a crucial document that signifies that a newly constructed or renovated building complies with local codes, zoning laws, and safety regulations. This certificate is legally required before residents can move into the structure, as it ensures that the building is safe and fit for habitation.

Obtaining this certificate typically involves inspections by local authorities to verify that construction has been completed according to approved plans and that all safety standards are met. Without it, residents cannot legally occupy the building, making it a critical step in the occupancy process.

While the other options touch on various aspects of real estate transactions, they do not necessarily require a certificate of occupancy. For instance, a real estate agent can list a property regardless of whether it has a certificate of occupancy. Similarly, valuing the property for appraisal purposes or updating tax records doesn't hinge on the issuance of a certificate; these can occur based on other factors or documentation. Hence, the necessity of a certificate of occupancy is specifically tied to the event of residents legally moving into the newly built structure.