- Who handles it
- City of Dallas Building Inspection, through the city's permitting system
- What gets filed
- A certificate of occupancy for the space, or a record change when only the business name changes
- Timing
- Ask before closing, since the application can take weeks
Common snag: Assuming the buyer inherits your certificate. The city lists a change of tenant as a reason to apply for a new one.
What the certificate is for
A certificate of occupancy confirms that a space is approved for the way it is being used. Dallas issues them for commercial spaces, and lenders and landlords often ask to see one.
Many sellers have never looked at theirs. It may sit in a drawer from the day the business opened, listing a use or an occupant load that no longer matches what happens inside.
When a sale triggers a new one
The city's own checklist lists a change of tenant on an existing certificate as a reason to apply for a new one. A buyer who takes over your operation in your space can fall into that category.
A change of use, such as turning a retail shop into a restaurant, is also a trigger. So is first use of a building.
A name change alone is treated more lightly. The city describes a record change, without inspections, when the business name on the certificate changes. That is different from a new owner, so ask which category your deal falls under.
Confirm all of this with Building Inspection, since the city updates its forms and fees from time to time.
Plan it into the timeline
A new certificate can involve a fire inspection and a code review of the space. If the buyer's plan matches how you use the space today, the process is usually smoother.
Build the application into the purchase agreement. Many contracts make the closing depend on the buyer getting the certificate, or give the buyer a window to apply first.
- Pull your current certificate and check that the use is accurate
- Fix known code issues, such as blocked exits or missing extinguishers
- Ask the landlord what it needs from the buyer to approve the assignment
- Decide who pays for the application and any required repairs
Restaurants, clinics and other special uses
Spaces with higher risk uses, such as restaurants, bars and healthcare offices, get a closer look. Food and liquor permits are separate from the certificate. Read the TABC permit guide if that is your business.
Connect it to the lease
The landlord's consent and the buyer's certificate often move together. The lease assignment guide explains how to line them up.
Buyers who find a certificate problem late may ask for a lower price or a holdback. Raising it yourself, before the offer, keeps the number steady.
For a view of what your business could sell for with the space in order, request a private price range.
This page is general information and not tax or legal advice. Confirm requirements with the City of Dallas and your attorney before you rely on them.