Georgia Real Estate Salesperson Practice Exam

What is the term for a document certifying that a structure complies with building codes and is ready for use?

1. Building permit

2. Certificate of occupancy

3. Construction approval

4. Legal occupancy letter

The correct answer is: Certificate of occupancy

A certificate of occupancy is a crucial document in real estate that indicates a building has met all local building codes and regulations, making it fit for habitation or use. Issued by the local government or building authority, this certificate is essential as it assures owners, tenants, and insurance companies that the property is safe and complies with the applicable standards. Before a property can be occupied, the certificate of occupancy must be obtained, typically after all inspections of electrical, plumbing, and construction work are completed successfully. This formal approval is vital for both residential and commercial properties, ensuring that all safety measures are followed and providing legal authorization for the property to be lived in or used for business purposes. The role of a building permit is more about granting permission to commence construction, rather than indicating that the building is ready for occupancy. Construction approval and a legal occupancy letter are not standard terms recognized in the context of building compliance in the same way that the certificate of occupancy is.