Q: Legal ramifications of buying a house with unit classification discrepancies in NY.
I am considering buying a house presented as a three-family property. The seller provided a deed and tax classification confirming it as a three-family home. However, my inspection showed it's actually two apartments with a basement, which is currently rented out. I found no permits for work done in the basement. I haven't consulted a lawyer yet but would like to know the legal ramifications of purchasing this property with such a discrepancy in unit classification. What should I be aware of, and how might this affect the sale or future use of the property?
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A: The answer to that question is 100% dependent upon the building and zoning law of the municipality in which the home is located. Sounds like there is a potential building and zoning violation which might be revealed in the course of the closing or thereafter. You would be well advised to go to the building department for the municipality involved and to consult with your local attorney. You may find that it is not legally habitable as a three family. Be careful because it could cost you time and money you don't expect.
Daniel Michael Luisi agrees with this answer
A:
Dear Brooklyn House Purchaser:
I cannot imagine any lawyer advising you sight unseen and without a complete review of the property suggesting you buy this property.
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 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 that is possible you would not be able to do so if the tenant is in possession. If the basement can not be used for any purpose beyond recreational use the architect will design plans for conversion 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 likely you will need to remove the separate 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 use or legal recreational use you will need to remove the improvements from the basement and restore it to original condition.
Of course you need a lawyer.
Daniel Michael Luisi agrees with this answer
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