What is a Certificate of Occupancy and Why is it Important?

Introduction
The “certificate of occupancy” (now known as the Certificate of Occupancy), which we often hear about when buying and selling real estate, is an important document that determines the legal compliance of a real estate property and its suitability for residence. In this article, we discuss in detail what a certificate of occupancy is, how it is obtained and why it is of critical importance.

What is a Certificate of Occupancy?
A Certificate of Occupancy is an official permit that certifies that the construction process of an immovable has been completed in accordance with the project approved by the municipality and meets the standards required for residence. This document shows both that the construction has been completed in accordance with the law and that the building can be used safely.

Can I Buy a Property Without a Certificate of Occupancy?
Yes, but there are some risks associated with buying a property without a certificate of occupancy. For example

Legal Problems: If the certificate is not obtained, the building may not have been built in accordance with legal regulations.
Credit Utilization: Banks generally do not grant housing loans for properties without a certificate of occupancy.
Sales Difficulties: When you plan to sell in the future, the lack of a certificate of occupancy can be a deterrent for buyers.
 

How to Obtain a Certificate of Occupancy?
Application: The contractor or building owner who constructed the building applies to the relevant municipality.
Inspection: The municipality inspects the real estate for compliance with the project and legislation.
Approval: If the immovable is found appropriate as a result of the examinations, a certificate of occupancy is issued.
Documents Required to Obtain a Certificate of Settlement:
Title deed
Construction license
Project approval documents
Reports on the relevant installations of the building (electricity, water, etc.)
What happens if there is no Certificate of Occupancy?
In an immovable property without a certificate of occupancy:

There is no official residence permit.
There may be subscription problems in services such as electricity, water and natural gas.
Penalties may be imposed by the municipality.