You found a buyer, picked a settlement date, and then the township inspector shows up with a clipboard. A few days later the report arrives: your house failed its resale use and occupancy (U&O) inspection. Now there's a list of repairs, a re-inspection fee, and a settlement date that suddenly feels shaky.
Take a breath. A failed U&O inspection is common across Delaware, Chester, and Montgomery Counties, and it almost never means you can't sell. Pennsylvania law changed how these inspections work, and you have more options than the report makes it seem. Here's what you need to know.
What Is a U&O Inspection?
Many Pennsylvania townships and boroughs require a resale use and occupancy inspection before a home can change hands. A local code official (or a firm the municipality hires) walks through the property and checks it against local building, property maintenance, and fire safety codes. If it passes, the municipality issues a U&O certificate and settlement moves ahead.
These rules are set town by town, so they vary a lot. Some municipalities require a resale U&O and some don't. Fees in our area commonly run about $100 to $150, with a separate charge for each re-inspection. Many offices ask you to apply at least two weeks before settlement and can take several business days to issue the certificate, so start early.
What Inspectors Commonly Flag
Most failed inspections come down to safety items, not major structural problems. Exact checklists differ by municipality, but these items show up again and again:
- Smoke and carbon monoxide detectors that are missing, expired, or in the wrong locations.
- Electrical hazards such as missing cover plates, open junction boxes, or no GFCI protection near sinks and other water sources.
- Missing or loose handrails on interior and exterior stairs.
- Trip hazards like broken steps or cracked, heaved sidewalk slabs.
- Water heater issues such as a missing or improper relief valve discharge pipe.
- Broken windows, doors, or locks, and house numbers that aren't visible from the street.
- Unpermitted work like a finished basement or added bathroom with no permit on file.
Some of these are quick, inexpensive fixes. Others, like a sidewalk replacement, electrical work, or legalizing an unpermitted addition, can cost thousands and take weeks to schedule.
The Good News: PA Act 133 Protects Your Sale
Before 2017, some municipalities would hold up a sale until every violation was fixed. That changed with Act 133 of 2016, which amended Pennsylvania's Municipal Code and Ordinance Compliance Act and took effect on January 2, 2017. Under Act 133, a municipality generally can't refuse to let a sale go forward, or demand repairs before settlement, because of problems found during a point-of-sale inspection.
Instead, the municipality issues one of two temporary certificates, depending on how serious the issues are:
| Inspection result | Certificate issued | What the buyer can do |
|---|---|---|
| No violations | Use and occupancy certificate | Move in with no conditions |
| Basic violations only | Temporary use and occupancy certificate | Move in and live there while completing repairs |
| Substantial violations (home unfit to live in) | Temporary access certificate | Enter to make repairs and store materials, but not live there until those issues are fixed |
Either way, the buyer agrees to take responsibility for the repairs, which generally must be completed within 12 months. If they aren't, the municipality can revoke the temporary certificate.
What this means for you: a failed inspection doesn't have to kill your sale. The real question is who fixes the violations, and whether your buyer is willing and able to take them on.
Your 3 Options After a Failed U&O Inspection
Option 1: Make the repairs yourself
If the list is short and the fixes are simple, like a few smoke detectors, a GFCI outlet, and a handrail, this is often the easiest path. Hire licensed contractors where the work requires it, pull permits when needed, and schedule your re-inspection. Keep receipts and permit records in case the buyer or title company asks for them.
Best for: minor issues, a flexible settlement date, and cash on hand for repairs.
Option 2: Negotiate with your buyer
Your buyer can accept a temporary certificate and handle the repairs after settlement, usually in exchange for a price reduction or a credit at closing. This works well when the buyer is paying cash or has a flexible lender. Be aware that some financed buyers hesitate, because their lender or appraiser may raise concerns about open violations, especially on a temporary access certificate when the home can't be lived in.
Best for: moderate repairs and a motivated buyer with flexible financing.
Option 3: Sell as-is to a local cash buyer
If the repair list is long, expensive, or tied to unpermitted work, or if your buyer walked away, selling your house as-is to a cash buyer removes the problem entirely. A cash buyer can accept the temporary certificate, settle on your schedule, and take care of the repairs after closing. There's no lender to satisfy and no repair negotiation dragging on for weeks.
Best for: major violations, inherited or vacant homes, tight timelines, or sellers who simply don't want to manage contractors.
Should You Fix It or Sell It As-Is?
Run the numbers before you call a contractor. Add up the quoted repair costs, re-inspection fees, permit fees, and the carrying costs of keeping the house longer (mortgage, taxes, utilities, and insurance). Then compare that to what you'd net from a cash sale. Our guide on whether to repair your home before selling walks through the math, and how cash buyers calculate their offers explains how condition factors into the price.
For many homeowners, especially those handling an inherited property or an older home with decades of deferred maintenance, the as-is route ends up cleaner and faster. For others, a weekend of small repairs gets them across the finish line on the open market. Our cash offer vs. listing comparison can help you decide.
Tips to Avoid Surprises
- Call your township or borough first. Confirm whether a resale U&O is required, the current fee, and how far ahead to apply.
- Ask for the inspection checklist. Many municipalities publish one. Walk your home with it before the inspector arrives.
- Handle the cheap fixes up front. Smoke and CO detectors, outlet covers, and house numbers cost very little and prevent an easy fail.
- Look up your permit history. Unpermitted work is one of the hardest issues to resolve on a deadline.
- Get a cash offer as a backup. Knowing your as-is number gives you leverage and a safety net if a financed buyer backs out.
Frequently Asked Questions
In most cases, yes. Under Act 133, a municipality can't block a sale or require repairs before settlement because of point-of-sale violations. It issues a temporary certificate instead, and the buyer takes responsibility for completing the repairs, generally within 12 months.
A temporary use and occupancy certificate covers basic violations, so the buyer can move in while making repairs. A temporary access certificate covers substantial violations that make the home unfit to live in, so the buyer can enter to make repairs and store materials but can't live there until those issues are fixed.
It depends on your municipality. Many townships and boroughs in the Delaware Valley charge roughly $100 to $150 for a residential resale inspection, plus a fee for each re-inspection. Check your local fee schedule for the current amount.
No. Point-of-sale requirements are set by local ordinance, so some municipalities require them and others don't. Call your township or borough code office, or ask your title company, early in the process.
We will. Delaware Valley Home Buyers buys houses as-is across Delaware, Chester, and Montgomery Counties. We can accept a temporary certificate and handle the required repairs after settlement, so you don't have to fix a thing first.
Failed Inspection? Let's Talk Options
For more than 25 years, we've helped homeowners across Delaware, Chester, and Montgomery Counties sell houses that needed work, including plenty that failed their U&O. We buy as-is, cover closing costs, charge no commissions, and can close in as little as 7 days or on whatever date works for you. Send us your inspection report and we'll give you a free, no-obligation cash offer so you can compare it against the cost of repairs.
Call (610) 787-0921 or request your cash offer online.
This article is general information, not legal advice. U&O requirements, fees, and timelines vary by municipality and can change. Confirm the current rules with your township or borough, and consult a real estate attorney for advice about your specific situation.