What Are Use and Occupancy Permits?

A use and occupancy permit is required by some local governments when real property is transferred. Typically, the regulations for these permits require the property seller to allow a government official to inspect the property. The seller must also pay a fee.

The purpose for the inspection is to make sure that the property is in compliance with local housing codes and ordinances. A use and occupancy permit is only valid for a limited time, such as 90 days, and the inspection must be completed in a limited timeframe, such as 30 days before closing. Not all local governments require use and occupancy permits. When such is the case, buyers and sellers make their own decisions about the condition in which they are willing to buy and sell the property.