If you sell a home in Dearborn, Michigan, the city requires a pre-sale inspection and a Certificate of Occupancy before closing. The seller or the seller’s agent books the inspection, the city charges an inspection fee (not a fee for the certificate), and any violations must be fixed before the buyer gets the certificate. The City of Dearborn states the requirement plainly: the certificate must be in hand prior to closing. Below is how it works, what it costs, what the exceptions are and how it fits with a probate sale.
TL;DR
- Dearborn requires a city pre-sale inspection and a Certificate of Occupancy before a home sale closes. The certificate is issued in the buyer’s name.
- The seller or the seller’s agent schedules the inspection. The city’s fee schedule lists $225 for a single-family home, and the certificate itself is free.
- Violations must be corrected and re-inspected. If the home is not approved by closing, the buyer can sign a compliance agreement to fix them.
- Inheritance transfers with no real sale are exempt. Sheriff’s sales and court-ordered auctions have their own 30-day rule.
- Probate runs on its own clock, so start the inspection early if the house is in an estate.
Table of Contents
- When Dearborn requires a certificate of occupancy
- What the inspection costs
- How to get the certificate, step by step
- If the home is not approved by closing
- Exceptions: inheritance, sheriff’s sales and court-ordered transfers
- How probate timing affects a Dearborn sale
- Should you inspect before you list?
- Our perspective
- Compare local buyers and agents
- FAQ
- Sources
When Dearborn requires a certificate of occupancy
A certificate of occupancy (C/O) is the city’s confirmation that a building meets minimum standards to be lived in. In Dearborn, the most common trigger for a homeowner is a sale. A residential pre-sale housing inspection is required by ordinance to obtain the C/O before the closing of a home sale. The certificate is prepared in the purchaser’s name, and the buyer needs it at the closing appointment to finalize the transfer.
The city’s own wording matters here. Dearborn describes these as basic safety and property maintenance inspections meant to confirm compliance with minimum housing standards. It is not a full home inspection like the one a buyer hires, and it does not grade the condition of the house. It checks the city’s minimum code.
Sales
Every ordinary sale of a residential property in Dearborn goes through the inspection. That includes sales to cash buyers. A fast closing does not remove the step, so a seller promising a one-week close has to build the inspection into the schedule. Our cash closing timeline for Michigan explains where inspection and title work fit into a 7 to 14 day closing.
Rentals and non-owner-occupied homes
Rental properties follow a different path. For rental or non-owner-occupied properties, city staff automatically prepare and mail the Certificate of Occupancy to the owner or the owner’s authorized representative. If you own a rental in Detroit rather than Dearborn, the rules differ, and our guide to Detroit rental registration covers that process.
Occupancy rules in the ordinance
The ordinance goes beyond the closing table. Dearborn’s code makes it unlawful to occupy a property, or to let an owner or agent permit occupancy, when the property has not been approved for it. Section 11-42 of the city code sets out the inspection and occupancy requirements, and it is the text to read if your situation is unusual.
What the inspection costs
The fee is for the inspection. The certificate has no charge. According to the city’s permits and occupancy fee schedule, residential sale inspections are priced by the number of units:
| Property type | Inspection fee |
|---|---|
| Single-family home | $225 |
| Two-family | $275 |
| Three-family | $345 |
| Four-family | $405 |
That schedule was published in 2024, so confirm the amount with the city before you book. Fee schedules change.
Re-inspections are handled separately. The initial re-inspection is free, but the city may charge $50 if the work is incomplete and another visit is needed. In practice, that means finishing the repairs before you call for the re-inspection.
How to get the certificate, step by step
- Schedule the inspection. The seller or the authorized agent is responsible for booking it with the city well in advance of the closing date. If you are selling for cash, set it up the day you accept an offer, or sooner.
- Prepare the house. Inspections run Monday through Friday, 9 a.m. to 4 p.m., and utilities must be on so the inspector can complete the whole check. A vacant house with the water or power shut off can lead to an incomplete inspection and a second visit.
- Read the inspection report. A city inspector completes the inspection, and then, according to the city, cited violations must be corrected and re-inspected and confirmed by an inspector.
- Fix the violations and book the re-inspection. Do the full list first. See the fee note above.
- Receive the certificate. It is issued in the buyer’s name and brought to closing.
For general phone contact, the city’s building department has historically been reached at 313-943-2000, and permit information at 313-943-2442, according to a city notice on building permits. Check the city’s website for the current numbers before you call.
How long it takes
The city does not publish one fixed turnaround that we could verify, and the time depends on the inspector’s calendar and how many repairs the report lists. Plan on the inspection date plus however long your contractor needs, then one more visit. If you need to close within two weeks, book the inspection before you list or sign.
If the home is not approved by closing
A failed or incomplete inspection does not always kill the deal. If the property has not been approved for occupancy, the purchaser must sign a compliance agreement to correct the violations shown on the inspection report. The inspection that report is based on must have been conducted no more than 12 months before the sale or transfer.
For sellers, this changes the negotiation. The buyer takes on the repairs, and often asks for a lower price or credits to cover them. For buyers, it means reading the inspection report before you sign anything, and pricing repairs the way you would price any other work. If you are financing the purchase, talk to your lender early, because a loan can depend on the property’s condition. A mortgage broker who compares rates across lenders can tell you how a pending compliance agreement might affect your approval.
Sellers with code problems in Detroit itself face a similar squeeze, which we cover in selling a Detroit home with code violations.
Exceptions: inheritance, sheriff’s sales and court-ordered transfers
Inheritance. The pre-sale inspection requirement does not apply to a property transferred through inheritance when no bona fide sale is intended and the person or persons receiving the property have been and continue to occupy it. If an heir inherits the home and plans to sell it, the exemption does not describe that situation. Read the code, or ask the city, before you assume it covers you.
Sheriff’s sales and court-ordered auctions. For these transfers, the purchaser must apply for an inspection within 30 days of the transfer and enter into a compliance agreement. Investors who buy at auction should put that 30-day deadline on the calendar the day they win the bid.
How probate timing affects a Dearborn sale
If the house sits in an estate, two clocks run at once: the court’s and the city’s.
On the court side, an unsupervised estate in Michigan must stay open at least five months, and a Certificate of Completion is issued 28 days after the personal representative files the Sworn Statement to Close (the presentation is from 2020, so confirm with the probate court). That is the estate’s timeline. The house itself can often be sold sooner, once the personal representative has authority to sell.
If the sale needs court approval, the petition must include the terms, purpose, legal description and financial condition of the estate, along with the most recent property tax statement. Gather those documents early.
Here is the practical plan for an estate sale in Dearborn:
- Confirm the personal representative’s authority to sell before listing.
- Book the city’s pre-sale inspection as soon as you have that authority. Because the heirs are selling, not keeping the home, the inheritance exception should not be assumed to apply.
- Start repairs from the inspection report while the estate paperwork moves.
- Tell buyers about the compliance agreement option up front.
For the court steps in Wayne County, such as the 91-day inventory deadline, see our guide to selling a probate house in Detroit. Dearborn is in Wayne County too, so the court side is the same. Only the city inspection differs.
Should you inspect before you list?
Because the city inspection is mandatory at sale, an early look costs you little and can save time. A seller who learns about a failed smoke detector, a missing handrail or a damaged porch after accepting an offer scrambles. A seller who knows beforehand fixes it on their own schedule. Our piece on whether a pre-listing inspection is worth it covers when it makes sense. Note that in Dearborn the city’s inspection is the one that produces the certificate, so a private inspection supplements it rather than replaces it.
Our perspective
We rank Metro Detroit cash buyers, agents and lenders, and the same lesson keeps coming up: municipal paperwork decides how fast a sale closes, not the buyer’s promises. A Dearborn closing can slip because nobody booked the inspection, not because the buyer lacked funds.
That is why we tell sellers to ask every provider one question: who handles the city inspection, and who pays for repairs? A provider who answers clearly is easier to trust. We do not accept payment for ranking placement, and we update our rankings quarterly, so the lists reflect how providers behave in Wayne, Oakland and Macomb counties.
If you are selling under pressure, an inheritance, a foreclosure or a move for work, compare a few options before you commit and get the inspection on the calendar first.
Bryan
Compare local buyers and agents
Selling in a hurry, or inheriting a house that needs work? Our rankings cover the providers who deal with inspection rules, repairs and short timelines. Start with our list of the best cash home buyers in Metro Detroit, or if you prefer a traditional listing, see the top real estate agents in Metro Detroit. Rankings are free, and providers cannot pay for placement.
Buying instead? Our Metro Detroit mortgage lender rankings help you compare lenders before you make an offer on a home that may come with a compliance agreement.
FAQ
Does the buyer or the seller pay for the Dearborn inspection?
The city puts the responsibility for scheduling on the seller or the seller’s authorized agent. Who ultimately pays the fee is a matter for the purchase agreement, so settle it in writing. The fee for a single-family home on the city’s schedule published in 2024 is $225.
Can I close without a certificate of occupancy in Dearborn?
It depends on the inspection result. If the home has not been approved, the purchaser can sign a compliance agreement to correct the violations listed on the report, which must come from an inspection within the prior 12 months. Ask the city and your title company how they will handle the closing.
Do I need a certificate of occupancy if I inherit a house in Dearborn?
Not if the transfer is a plain inheritance with no bona fide sale intended, and the person receiving it has lived there and continues to. If the heirs plan to sell, the sale triggers the normal inspection process.
How long does probate take in Michigan if the house is in the estate?
An unsupervised estate must stay open at least five months, with a Certificate of Completion issued 28 days after the sworn statement is filed. The house can often sell before the estate closes, once the personal representative has authority. Ask the probate court about your specific case.
What happens after a sheriff’s sale in Dearborn?
The buyer must apply for an inspection within 30 days of the transfer and enter into a compliance agreement. The same rule applies to court-ordered auctions.
Sources
- Selling or Buying a Home, City of Dearborn
- What is the Process for Buying a House in Dearborn?, City of Dearborn
- Step 6: Certificate of Occupancy, City of Dearborn
- Sec. 11-42. Inspection and occupancy requirements, Dearborn City Code
- Permits and Occupancy Fee Schedule, City of Dearborn
- Residential Sales, City of Dearborn
- Step 5: Schedule a re-inspection, City of Dearborn
- Wills and Estates Webinar, Michigan Courts
- Court Rules Chapter 5, Michigan Courts