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The implied warranty of habitability assures a tenant that the landlord is providing a safe place to live. If the certificate of occupancy has yet to be obtained, it could be determined that there are structural defects, that do not make the rental property safe. If it is not safe, there could be a breach. If the landlord gets the COO and after you continue to pay rent and he accepts it, the lease would them be binding.
You need to make the landlord aware of your intent to move out and the reason that you feel he/she is in breach of the lease agreement. Give the landlord 30 days notice and vacate after. If the landlord does not agree that he is in breach of the lease, he may decide to hold your security deposit. If he does, you will likely need to sue him to recover it. It is best to do this the right way, so you may want to retain an attorney to write a letter to the landlord and see how he responds. If he knows you have an attorney, he may be willing to allow you to move out without a fight and return the security deposit.
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