WHAT DOES IT MEAN WHEN A CERTIFICATE OF OCCUPANCY IS ISSUED FOR A BUILDING?

What is a housing license and how does it affect the real estate buying and selling process? Learn the importance of this document and its role in real estate with frequently asked questions.

What is a Housing License?

A certificate of occupancy is a document that officially certifies that the construction of a building is complete and fit for habitation. It is issued by local municipalities after inspections that check that the construction complies with the law and technical standards. The certificate of occupancy determines the legal status of the building and grants permission to use it.

What is the Importance of a Housing License in Real Estate?

The importance of the occupancy license in real estate is great and has an impact in several different areas:

1. Land Registry Transactions and Value Increase:
   Title deed transactions of a building that has received a settlement license are realized faster and more smoothly. This document provides assurance to property owners and facilitates the title deed transfer process. A real estate without a certificate of occupancy may lose value due to legal and technical problems. Buyers may hesitate to purchase such a property, which may complicate the sales process and reduce the market value of the property.
2. Credit Utilization and Financing:
   Banks consider the existence of a certificate of occupancy as an important assurance when granting housing loans. Loans for buildings without a certificate of occupancy are often limited or may not be possible at all. This can complicate the financing process for buyers and negatively affect the sales process.

Frequently Asked Questions (FAQs)

1. Is it risky to buy a property without a housing license?
Yes, a property without a certificate of occupancy poses various legal and technical risks. The legal status of buildings without a certificate of occupancy may not be clear and this may cause problems both in the title deed transfer and in the loan utilization process.

2. Is it possible to get a loan for buildings without a license?
Usually no. Banks are reluctant to lend for buildings without a certificate of occupancy because such buildings are not considered complete and legally fit for use.

3. How to obtain a housing license?
The occupancy license is obtained as a result of the application made to the municipality after the completion of the construction. After the inspections carried out by the municipality, if it is determined that the building complies with technical and legal standards, the occupancy license is issued.

4. Can a building without a building license be sold?
Yes, a building without a building license can be sold, but the sales process can be more complicated. Buyers should be aware that they may face legal and technical problems when buying such a building.

Conclusion

A housing license is a document of great importance in the purchase and sale of real estate. This document proves that a building is legally and technically suitable for use and speeds up the title deed process. Real estate investors and buyers can make a more reliable and profitable investment by choosing real estate with a housing license.

For a safe real estate purchase process, paying attention to the existence of a housing license is critical to protect against possible risks.