Across Pennsylvania, REALTORS® and their clients have been faced with issues of municipalities preventing settlements from moving forward due to the results of a Use and Occupancy inspection, which are government inspections triggered by the real estate transaction process to check for zoning and code
That's why Act 133 of 2016 was passed, amending the Municipal Code and Compliance Act to prohibit municipalities from stalling or preventing the buying and selling of property based on the results of a Use and Occupancy inspection, and requiring them to allow a minimum of 12 months to correct any violations the municipality finds during an inspection.
Use and Occupancy inspections go by many names: resale inspection, point of sale inspection, property transfer inspection, etc. However, regardless of what it is called, any inspection triggered by the buying and selling of private property is subject to the rules outlined in Act 133. This includes rental and commercial properties when the property is sold to new owners, but not when there is a change in tenancy.
Unfortunately, nearly three years later, not every municipality in Berks County has brought their inspection practices into compliance with the new state law. That's where the Reading-Berks Association of REALTORS® can make the difference for you and your clients: helping you understand the law, take full advantage of it to protect your clients, and assist you when municipalities aren't following it.
Act 133 changed the law to state the following:
- Once a municipality has conducted a Use and Occupancy inspection, it must issue a certificate allowing real estate settlements to move forward. There are three types of resale certificates:
- a normal U&O permit, allowing new owners to move in immediately
- a temporary U&O permit, allowing new owners to move in immediately and make required repairs within 12 months from the date of settlement
- a temporary access permit, allowing buyers of homes deemed unfit for habitation to access the building without residing in it, and make substantial repairs within 12 months
- Municipalities cannot demand the escrowing of funds, or posting of a bond, or impose any similar financial security as a condition of issuing a U&O certificate.
- The term "unfit for habitation" has been clearly defined to describe properties that are "dangerous or injurious to the health, safety, or physical welfare of an occupant or the occupants of a neighboring dwelling." Code inspectors can no longer deny a U&O permit due to minor issues such as missing house numbers, chipped paint, or other issues.
Call the Reading-Berks Association of REALTORS® at 610-375-8458 if:
- ...your client is being denied a U&O permit or a temporary access permit, or the municipality is inhibiting the settlement as a result of a U&O inspection. The municipality must provide one as long as they have been given an opportunity to inspect the home.
- ...your client is being asked by the municipality to provide escrow as a condition of issuing a U&O certificate.
- ...your client is being asked to make repairs or correct violations within a time frame shorter than 12 months after the point of sale.
- ...a municipal official tells you that Act 133 does not apply to them for any reason. Any inspection triggered by the buying and selling of property, even those that only investigate the exterior of buildings, is subject to the rules outlined in Act 133.
Please note that not all municipalities in Berks County require U&O inspections, but many do. To see which municipalities require these inspections, you can check out R-BAR's comprehensive Municipal Database by clicking here.
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