REALTORS® working with buyers and sellers in Southfield should be aware of a new city requirement that adds an important step to residential real estate transactions. Under Ordinance No. 1835, approved April 27, 2026, and posted on the City of Southfield's website on September 16, 2026, all residential properties sold in Southfield must undergo a point-of-sale inspection and obtain a Certificate of Occupancy (C of O) before the buyer can occupy the home.
The new requirement makes it important for sellers, buyers, and their REALTORS® to understand the inspection process, associated costs, and responsibilities for addressing any violations before closing.
Understanding the Inspection Requirements
The total cost for the required point-of-sale inspection and Certificate of Occupancy is $190, broken down as follows:
- $40 – Application fee
- $50 – Certificate of Occupancy fee
- $100 – Building inspection fee, which includes one reinspection
Payment must be made before the inspection can be scheduled. According to the city's process, inspections will be scheduled within 14 days of payment.
What Happens If the Inspection Identifies Violations?
If the inspection identifies items requiring correction, there are two options:
Option 1: The Seller Completes the Repairs
The seller may address the identified violations and request a reinspection to verify that the required work has been completed.
Option 2: The Buyer Assumes Responsibility for Repairs
Alternatively, the buyer may agree to assume responsibility for outstanding repairs by signing an affidavit before closing and posting a performance bond.
Buyers who assume responsibility must complete the required repairs within 30 days after closing. The affidavit also specifies that the property cannot be occupied until all required repairs have been completed and the home has passed reinspection.
What REALTORS® Should Do
These requirements introduce additional considerations that should be addressed early in the transaction. GMAR encourages members to:
- Order the inspection early. Don't wait until just before closing. The city's scheduling timeline and any necessary repairs could affect the transaction.
- Discuss repair responsibilities upfront. Buyers and sellers should understand their options if the inspection identifies violations.
- Address responsibilities in the purchase agreement. Clearly document who will be responsible for repairs and any applicable performance bond requirements.
Confirm details with the city. When questions arise about the inspection process, repair requirements, or occupancy restrictions, contact Southfield directly.
Get More Information
For questions about Southfield's point-of-sale inspection requirements, contact the City of Southfield Building & Safety Engineering Department at (248) 796-4100.
For additional details, members can review the following resources:
- City of Southfield – Official Point-of-Sale Packet (PDF)
- GMAR – Southfield Point-of-Sale Inspection One-Pager
GMAR encourages REALTORS® to familiarize themselves with this ordinance and incorporate the inspection requirements into their transaction planning when working with clients buying or selling residential property in Southfield. Being proactive can help prevent unexpected delays and keep transactions moving toward a successful closing.