Use And Occupancy - U&O

AAA

DEFINITION of 'Use And Occupancy - U&O'

Refers to a type of permit required by some local governments whenever real property is transferred. Usually U&O regulations require the property seller to pay a fee of around $100 and allow a government official to inspect the property. The inspection's purpose is to ensure that the property complies with local housing codes and ordinances and that all the necessary permits have been filed. It is also referred to as a "resale inspection," an "occupancy permit," and a "U&O certificate."

INVESTOPEDIA EXPLAINS 'Use And Occupancy - U&O'

The U&O inspection must be completed within a limited timeframe, such as 30 days prior to closing, and a U&O certificate may only be valid for a limited time, such as 90 days.


In localities with no U&O requirement, buyers and sellers can make their own determinations about the condition in which they are willing to buy and sell the property and the transaction can proceed more quickly and smoothly. The buyer may purchase a private home inspection and may ask the seller to make repairs as a condition of closing the deal. The seller is free to agree to make the repairs, to negotiate for the buyer to perform a portion of the repairs, or to walk away from the transaction. When local government is involved, the seller is forced to spend time and money to fix anything the government deems necessary, without regard to the prospective buyer's requirements.

RELATED TERMS
  1. Ground Lease

    An agreement in which a tenant is permitted to develop a piece ...
  2. Home Inspection

    An examination of a real estate property's condition, usually ...
  3. Occupancy Rate

    In real estate, the number of units in a building that have been ...
  4. Vacancy Rate

    The vacancy rate is a numerical value calculated as the percentage ...
  5. Lessee

    The person who rents land or property from a lessor. The lessee ...
  6. Lessor

    The owner of an asset that is leased under an agreement to the ...
RELATED FAQS
  1. What are the main differences between a mixed economic system and pure capitalism?

    A mixed economy is one in which the government does not own all of the means of production, but government interests may ... Read Full Answer >>
  2. What are some disadvantages of a mixed economic system?

    From a purely consequentialist or utilitarian point of view (that is, avoiding moral or philosophical arguments), critics ... Read Full Answer >>
  3. Did the repeal of the Glass-Steagall Act contribute to the 2008 financial crisis?

    The repeal of the Glass-Steagall Act was a minor contributor to the financial crisis, if it contributed to the crisis at ... Read Full Answer >>
  4. What is a fiduciary deed and when is it useful?

    A fiduciary deed is used to transfer property rights in a sale when a fiduciary must act as an executor of the sale on behalf ... Read Full Answer >>
  5. What are some of the more common reasons divestiture occurs?

    In finance, divestment or divestiture is defined as disposing of an asset through sale, exchange or closure. A divestiture ... Read Full Answer >>
  6. Who are the most famous people convicted of insider trading?

    In finance, insider trading refers to the buying and selling of security by a person who has access to material non-public ... Read Full Answer >>
Related Articles
  1. Home & Auto

    The Truth About Real Estate Prices

    Historical housing price data suggests ongoing increases in housing prices, but these numbers don't tell the whole truth.
  2. Personal Finance

    Real Estate Speculation In College Towns

    Is this an investing option you should consider? Find out here.
  3. Home & Auto

    7 Steps To A Hot Commercial Real Estate Deal

    For savvy real estate investors, times of lower prices reveal investment opportunity.
  4. Home & Auto

    Should You Buy A House At Auction?

    The traditional real estate market isn't the only place to conduct your home search. Auctions also bring many buying opportunities.
  5. Home & Auto

    Top 4 Things That Determine A Home's Value

    Your house depreciates over time, while the land beneath it is likely to do the opposite.
  6. Entrepreneurship

    Find Fortune In Commercial Real Estate

    Investing in big buildings means big money - and bigger risks.
  7. Retirement

    Steps To Replace Or Update Your Social Security ID

    Investopedia's step-by-step guide to filling out the form that gets you a new or replacement Social Security card.
  8. Retirement

    The Purpose Of Social Security Form SS-5

    If you need a new Social Security card, you need to fill out form SS-5. Despite the details, the process is more time-consuming than difficult.
  9. Retirement

    Understanding Social Security Eligibility

    Who qualifies for Social Security payments and when can they get them?
  10. Economics

    What Happens When A Stock Broker Goes Bust?

    While there is nothing much that can be done against the market volatility, there is a protection mechanism in place in case the broker firm runs into a financial trouble.

You May Also Like

Hot Definitions
  1. Coupon

    The interest rate stated on a bond when it's issued. The coupon is typically paid semiannually. This is also referred to ...
  2. Redemption

    The return of an investor's principal in a fixed income security, such as a preferred stock or bond; or the sale of units ...
  3. Standard Error

    The standard deviation of the sampling distribution of a statistic. Standard error is a statistical term that measures the ...
  4. Capital Stock

    The common and preferred stock a company is authorized to issue, according to their corporate charter. Capital stock represents ...
  5. Unearned Revenue

    When an individual or company receives money for a service or product that has yet to be fulfilled. Unearned revenue can ...
Trading Center