I’m buying a condo in a new development that doesn’t have a CO yet. What are the risks?

If the building does not obtain a CO in time, you risk having to delay your closing, among other issues, our experts say.

A CO or certificate of occupancy¬†specifies how a building may be used, how it’s zoned, and how many residences are permitted. (A TCO is a temporary certificate of occupancy, which means the building can be inhabited but there is still some work to be done on it.) Without this document, buildings cannot be legally inhabited.

It takes time for a new development to obtain a CO or TCO, which can cause delays in closing.