Why Your NYC Building's Certificate of Occupancy Could Sink the Deal (Ask a Lawyer)
Why Your NYC Building's Certificate of Occupancy Could Sink the Deal (Ask a Lawyer)
Buyers and investors are suddenly scrutinizing old approvals. That scrutiny makes the certificate a hot topic in tight markets.
Why Your NYC Building's Certificate of Occupancy Could Sink the Deal (Ask a Lawyer) is a city permit showing legal use. This document confirms the layout, fire safety, and capacity meet local rules. Studies indicate title companies review this early to avoid hidden issues.
How Missing or Bad COIs Derail Closings
Hidden work or unauthorized rooms create red flags. Lenders pause loans until risks are fixed or explained. Research shows buyers lose deals when due diligence uncovers noncompliance.
Quick Takeaway
Verify current COI status before you sign any offer.
FAQ
Q: Who usually orders a COI check in a NYC deal? Buyers, their agents, and title firms request this review during due diligence.
Q: Can a missing approval stop financing? Yes, lenders often halt funding until the certificate matches the unit.
