- Agency
- City of Cleveland Department of Building and Housing, Records Administration
- Paperwork
- A certificate of occupancy in the new owner's name, or confirmation from the city that the existing one still applies
- The clock
- Ask the city before the sale closes, since the Housing Code speaks of a thirty day window after a recorded ownership change
Watch for: Treating the old certificate as permanent. The city says the certificate attaches to the building, yet its code also says a new owner must apply, and a change of use can void it.
What the certificate shows
A certificate of occupancy says a building or space has been approved for a particular use. Lenders, landlords and insurers often ask for it, and a buyer who cannot see one will worry about surprises after closing.
What the city says
The Records Administration page of the Department of Building and Housing says the certificate is linked to the structure, not the owner.
A new owner may obtain a certificate in their own name by paying a name change fee. The page listed that fee as sixty dollars when we checked.
What the code says
The Cleveland Housing Code is stricter in its wording.
It states that a certificate issued to a former owner becomes void within thirty days of a recorded change of ownership, and that the new owner must obtain a new one. That section may be dated, and the two statements do not line up neatly.
Because of that, treat the question as one to settle with the city, not one to guess.
Change of use is different
A new owner who plans to change what the space is used for needs the city to approve that change. The code says an unapproved change in use or occupancy voids the certificate.
Records the city may ask for
The city has also set up an existing use certificate process with an application, supporting documents showing the use has been continuous, and plan processing and permit fees. Fees change, so confirm them with the department.
If the building sells too
When a property changes hands by voluntary transfer, Cleveland requires a certificate of disclosure, and foreclosures are excluded. If you sell the real estate with the company, ask the city about both documents.
Why buyers care
Lenders often ask for the certificate before they fund, and insurers may ask for it before they bind coverage. A buyer who finds a problem late may ask for a lower price or a delay.
What to do before closing
- Find your current certificate and read the stated use
- Call the Records Administration office about the name change
- Tell the buyer about any planned change of use
- Put the responsible party and the date in the sale agreement
Related steps
Restaurant owners should also read food service license transfers. For how landlords and leases affect price, see letters of intent. When you are ready, request a price opinion.
This page is general information and not tax or legal advice. Confirm the process and timing with your attorney and the City of Cleveland Department of Building and Housing.