Brooklyn, NY asked in Real Estate Law and Landlord - Tenant for New York

Q: Legal issues buying property with illegal basement and tenant

I am considering buying a property that has an illegal basement currently occupied by a tenant without an official lease or permit. There have been no fines or complaints related to the basement. I plan not to rent it out and to leave it as-is. What are the potential legal ramifications I might face regarding the tenant and the status of the basement under these circumstances?

2 Lawyer Answers

A: Dear Brooklyn Home Buyer:

You described an illegal, unregistered, multiple dwelling, and extant violation of the Certificate of Occupancy.

Aside from the likely Department of Buildings violations of basement use contrary to the Certificate of Occupancy and failure to restore the basement to legal nonresidential use, should the tenant stop paying rent, the eviction proceeding is only for a Holdover.

An architect may design plans to legalize the basement for residential use if the space allows for conversion. If possible you would not be able to do so if the tenant is in possession. If the basement can not be used beyond recreational use, the architect will design plans to convert it from illegal residential use to lawful recreational use. The significance is that recreational use does not allow for a bedroom and kitchen in the basement. If the basement tenant has a separate gas and electric account, you will likely need to remove the individual meters.

If the basement could be converted to legal recreational use, you could market the first-floor unit as a duplex with recreational facilities in the basement. If conversion is not possible for legal residential or recreational use, you will need to remove the improvements from the basement and restore it to its original condition. Of course, you need a lawyer.

A: If the basement could be converted to legal recreational use, you could market the first-floor unit as a duplex with recreational facilities in the basement. If conversion is not possible for legal residential or recreational use, you will need to remove the improvements from the basement and restore it to its original condition. Of course, you need a lawyer.

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