In Southfield, most home sales now go through a city Certificate of Occupancy inspection before closing. That applies to a ranch off Evergreen, a townhome, a condo or a duplex, with two narrow exemptions covered below. The rule comes from Ordinance No. 1835, which adds a new Chapter 108, "Residential Point of Sale," to the city's building code. The rule mostly changes the schedule. A buyer's financing, a seller's move-out date and the closing table now all wait on a city inspector, and on whatever list the inspector leaves behind.
For anyone listing or buying in Southfield this fall, the sale has a new first step. That step can be taken before a buyer exists.
What the ordinance actually requires
The published summary of the ordinance is direct about scope:
"No person shall sell, purchase, give, convey by deed, land contract, lease purchase, or otherwise, or in any other manner transfer title to any single-family home, duplex, townhome, condominium, or any other residential dwelling in the City without first applying for and obtaining a Certificate of Occupancy from the City."
That language comes from the Southfield Sun's published summary of Ordinance No. 1835. The same section says a buyer can't occupy the home until the city issues that certificate. The city's application packet adds a path the summary doesn't spell out. A buyer can sign on to take over the repairs and close first, but the final inspection and certificate still have to come before move-in. That path is covered further down.
Two situations are exempt. One is a home whose Certificate of Occupancy was issued within one year before the title transfer. The other is new construction that has never been occupied. The first exemption matters most for sellers. A certificate stays good for a year, so it can be obtained before the house ever goes on the market.
The city states its reasons plainly. The purpose section says a substantial share of Southfield's existing homes "may not meet all applicable codes" because of work done without permits, inspections that never happened, and general maintenance gaps. It also says full code compliance for every house is impractical, so the program targets "basic safety concerns." Violating the ordinance is a municipal civil infraction.
Why the rule is newer than its April date suggests
The council put the ordinance on its April 20, 2026 agenda for introduction and on its April 27 agenda for enactment. The city's own documents don't agree on the date it took hold. The city's announcement says the council approved and enacted it on April 27. The application packet says "As of April 20, 2026." The published summary lists enactment as April 29.
The date that matters most for timing comes last. The ordinance says it takes effect "upon passage and publication," and its summary appeared in the Southfield Sun on September 10, 2026. At the April 27 meeting, city staff said they would "try to get the timing of the ad as close as to July 1 as possible, just for a little breathing room." A council member also noted that the Greater Metropolitan Association of REALTORS had raised concerns about how the word would get out. Both points appear in the Open Publica transcript of the meeting. The transcript records the ordinance passing 6-1.
The legal summary appeared in September, well after the July ad timing staff had described, so the ordinance has been published for less than two months as this post goes up. Staff described their outreach plan as working with "every title company" and with realtors to make clear the inspection is a legal requirement. Some sellers who signed listing agreements over the summer may first hear about it from a title company. That's late in the process to start a two-week clock.
The clock, step by step
The city's Point of Sale packet lays out the process:
- Fill out the Point of Sale/Occupancy application. Then apply for a Point of Sale permit through the city's BS&A online portal.
- Pay $190 from the emailed link. The fee breaks down as a $40 application fee, $50 for the Certificate of Occupancy, and $100 per trade, which covers one reinspection for each trade. The required inspection listed is Building.
- Wait for a staff call. Once payment clears, the city schedules the inspection within 14 days of the payment date.
- Block out three hours. The form offers a 9:30 a.m. to 12:30 p.m. window or a 12:30 to 3:30 p.m. window, and someone must be at the property for the whole period.
- Get the violation list. Correct the items and call for a reinspection. Once everything passes, the city issues the certificate.
The form has fields for a "Requesting Party," a "Current Owner" and a "Proposed Owner." It doesn't say outright which side has to file. In practice, the person who owns the house and controls access to it is in the best position to start the clock. Since the inspection can run up to 14 days out, starting before the listing goes live keeps that wait out of the contract period entirely.
Where the violation list goes next
The inspection report is the real pivot point. Once it arrives, the sale can take one of two paths, and each one changes the deal differently.
| Seller corrects before closing | Buyer assumes the violations | |
|---|---|---|
| Who does the work | Selling homeowner | New owner, after closing |
| Reinspection | One follow-up included for the seller | Required before move-in |
| Paperwork | None beyond the permit | Affidavit to Assume Resale Violations, signed by seller and buyer before closing |
| Deadline | Before the certificate issues | Repairs done and reinspected within 30 days of closing |
| Money held | None listed | Performance bond, amount based on the extent of repairs |
| Move-in | After the certificate issues | Not until violations are corrected and reinspected |
The affidavit's capital letters read "NO OCCUPANCY IS PERMITTED UNTIL VIOLATIONS ARE CORRECTED AND RE-INSPECTED." It also asks the buyer to check whether the home will be owner-occupied, a rental or a resale. Extensions on the 30 days go through the inspector named on the violation letter. On every path, the packet says all life safety issues must be corrected before occupancy.
For a buyer, the assumption path costs more than repair money. It means posting a bond, holding a closed house you can't live in, and having contractors finish inside a month. Someone moving out of a lease on a fixed date has to plan around that gap. For a seller, an unresolved list becomes a negotiating item. Buyers can reasonably ask for a credit that covers the repairs, the bond and the carrying time. When the seller resolves the list early, it never reaches the negotiation.
What the city inspection is, and what it isn't
The ordinance says its inspections "are not intended to verify compliance with all applicable plumbing, heating, air conditioning, electrical or building codes." It also says they aren't meant as "any warranty or guarantee whatsoever as to the condition of the dwelling."
From a contractor's point of view, that sentence decides how a buyer should treat the certificate. A passed city inspection means the house cleared a basic-safety screen. It says nothing about the age of the roof, the condition of the sewer line or the life left in the water heater. A buyer's own inspection still does that job. The city's list and the buyer's report also overlap. An item the city flags can affect the same negotiation as an item the buyer's inspector finds.
The packet also includes a Furnace / Boiler Certification form. A mechanical contractor fills it out, and the form says the contractor "must be licensed and registered with the City." It records the carbon monoxide reading in parts per million with a pass or fail, along with the condition of the heat exchanger, limit control, venting and chimney, plus the gas shut-off and backflow preventer. Line those fields up ahead of time and you have a decent outline of what a heating contractor will look at. In Southfield's older housing stock, that's often the system worth having serviced before an inspector arrives.
Across Eight Mile, the rules differ
Detroit's property maintenance rules require a Certificate of Compliance for commercial and residential rental properties, "with the exception of single-family, owner-occupied dwellings," according to the City of Detroit's BSEED page. A buyer comparing a home in Detroit's northwest neighborhoods with one in Southfield is comparing two different closing processes. On the Southfield side, a city inspection and its repair list are part of nearly every resale.
Investors face a second layer. Southfield already requires one- and two-family rentals to be registered and inspected every three years. The city's rental housing page lists a $300 registration fee plus a $40 application fee, with 30 days to correct cited violations. Under the rental ordinance, a new owner of a rental must register it within 30 days of the sale. An existing rental certificate can carry over to the new owner until it expires or is revoked.
FAQ
Does a condo or townhome need the inspection? Yes. The ordinance's scope names single-family homes, duplexes, townhomes, condominiums and "any other residential dwelling."
If I'm selling a house I just bought, do I need another inspection? Not if the city issued a Certificate of Occupancy within one year before the new transfer.
Can the closing happen before the repairs are done? The packet allows it when the buyer and seller sign the Affidavit to Assume Resale Violations before closing. The buyer then posts a performance bond and can't move in until the work is reinspected.
Who do I call with questions? The packet lists the Southfield Building Department at 248-796-4100.
This post is general information about a city ordinance, not legal or financial advice. Confirm how the rule applies to your sale with the Building Department, your title company or an attorney.
If you're selling in Southfield, the point-of-sale inspection is something we like to look at before the listing photos are taken. Clarence can walk the house with the city's checklist in mind and scope any likely repairs, and Kristi can plan the listing timeline around the certificate. Talk with Team Mishaw about putting the inspection on your calendar ahead of the city's, and get your instant home valuation while you're there.
