Certificate of Occupancy, Buffalo, NY

Buying & Selling Real Estate
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Certificate of Occupancy, Buffalo, NY

Peter Cook
New York City, NY · Member since 2013 · 5 posts · 1 vote

Hi;

I'm planing to buy a rental property in Buffalo, NY. I was shown a "standard" contract of sale, that contains a clause stating that the seller would not be required to provide a Certificate of Occupancy (CoO) if the property is a single family or a multiple family unit. Few people from the area told me that it is a standard practice not to require CoO on sale/purchase. My understanding of the town building code is that a CoO is required, and my understanding of the law in general is that CoO is a must for a rental property. I would appreciate if people with experience regarding rentals in Buffalo and surrounding area specifically (Tonawanda, Amherst) would share their understanding of the town code, sale/purchase practices and legal requirement in respect to a Certificate of Occupancy... Thanks!

Further, would the permits and CoO be listed on the paperwork that can be obtained in the Town's Building Department in Buffalo, or Tonawanda, or Amherst? Thanks again.

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Denice S.
Specialist · Buffalo, N · Member since 2013 · 59 posts · 46 votes
12y

Hi Peter,

That is correct information. In the city of Buffalo, single family and 2-family homes are not part of the CoO process. In lieu of the CoO, all non-owner occupants must register the property as a rental. The rental registry program fee is $10 annually for sf and $20 for 2-family and is billed every January.

While there is no formal inspection process in the rental registry program, the city will inspect if you don’t register or if they receive complaints about the property. Here is a link for more info regarding the rental registry . The PDF in this link explains exactly how the rental registration program operates.

If you are buying a sf or 2 family house that is currently a rental, you might ask the seller if they have it registered in the rental program. If so, they should be able to produce a receipt. If they don’t have the property registered, I would register the property immediately upon closing. If the seller lives in the property, the property would not be registered.

3 or more units require the CoO and they are inspected and issued every 3 years.

Hope this helps. I live in Buffalo and have multiple rentals in the city and surrounding areas, and I’m a licensed Realtor.

Denice

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  • Stewart Beal
    Investor · Ann Arbor, MI · Member since 2013 · 178 posts · 225 votes
    12y

    Peter I would caution you from buying a property that does not have a certificate of occupancy. Where I do business in Ypsilanti, MI often sellers are using property against zoning ordinance or against code and that is the reason they don't have the certificate of occupancy. You are buying the property as is, so if they are using the property against code you probably will be required to use it to code which could significantly reduce income potential if they are gaming the system a bit.

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  • Peter Cook
    OP
    New York City, NY · Member since 2013 · 5 posts · 1 vote
    12y

    Hi Stewart; I share that concern. Thanks for the comment. From my experience, while one could get a certificate after buying a property, it is a risky and potentially expensive move. I'd just like to 'hear' from someone from Buffalo, who is familiar with both local practices and local laws, as I was surprised to see the clause placed in a document for which it was stated that it is a 'standard contract' - e.g. that part does not look like a 'standard practice' to me.

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  • Denice S.
    Specialist · Buffalo, N · Member since 2013 · 59 posts · 46 votes
    12y

    Hi Peter,

    That is correct information. In the city of Buffalo, single family and 2-family homes are not part of the CoO process. In lieu of the CoO, all non-owner occupants must register the property as a rental. The rental registry program fee is $10 annually for sf and $20 for 2-family and is billed every January.

    While there is no formal inspection process in the rental registry program, the city will inspect if you don’t register or if they receive complaints about the property. Here is a link for more info regarding the rental registry . The PDF in this link explains exactly how the rental registration program operates.

    If you are buying a sf or 2 family house that is currently a rental, you might ask the seller if they have it registered in the rental program. If so, they should be able to produce a receipt. If they don’t have the property registered, I would register the property immediately upon closing. If the seller lives in the property, the property would not be registered.

    3 or more units require the CoO and they are inspected and issued every 3 years.

    Hope this helps. I live in Buffalo and have multiple rentals in the city and surrounding areas, and I’m a licensed Realtor.

    Denice

    1Reply
  • Peter Cook
    OP
    New York City, NY · Member since 2013 · 5 posts · 1 vote
    12y

    Denice: THANK YOU, so much appreciated. This is exactly the information I was looking for. YES, this does help. A lot.

    I will need to read through the materials available under the link, but (please excuse my temporary laziness as I'm asking this without reading that first): based on your comment only, do I understand correctly that if one is the owner living in the home (in the city of Buffalo) then he/she would not need to have a CO - therefore it is to be expected that such properties (sf, mf) would be sold without a CO?

    Also, would you perchance know if this also applies to the township of Tonawanda, that has it's own building code? Upon reading the town's building code available online I've concluded that in Tonawanda the CO is required for sf and mf homes and rentals.

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  • Denice S.
    Specialist · Buffalo, N · Member since 2013 · 59 posts · 46 votes
    12y

    Actually, there is no CoO for any sf or 2 family houses regardless of status of occupancy. For instance:

    • The sf house I live in (in Buffalo) was sold to me 15 years ago without a CoO and if I sold it today, there would still be no CoO involved and all the time I’ve lived here, I’ve never had a CoO.
    • If I decide to rent the sf house I live in, I would register it with the rental registry department. I would then pay $10/year….still no CoO requirements...even with a tenant involved.
    • A sf unit or 2 unit house I purchase today involves no CoO or, if I sold one today, there would be no CoO involved. It doesn’t matter if it’s vacant, tenant occupied or owner occupied.

    The triggers for a CoO are 3 or more units that are non-owner/family occupied or whenever additions or significant work is done that requires the permit process.

    As for Tonawanda, I have a SF rental in Tonawanda. It was sold to me years ago tenant occupied and is still tenant occupied. There is no CoO requirement. This is standard across our region (Erie and Niagara counties). I’ve listed SF and 2 Unit homes and sold the same to buyers throughout Western NY, working hand in hand with attorneys and I can’t think of a single area that had a CoO requirement for SF or 2 Units.

    I know your google searches probably lead you to a handful of contradictions as this region is not very good at updating their websites with current processes. To alleviate your concerns, I recommend a phone consultation with a Buffalo/Niagara Real Estate attorney…they will verify that CoO’s are just not required for SF and 2Units. And by “not required” I don’t mean, ‘not required to close a transaction’. I mean, they don’t exist.

    Here’s a link to an interesting read as someone actually tries to sort out the confusion….

    I have to admit, with all the misinformation, it’s no wonder investors run from this region.

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