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2 Family illegally converted to 3-family?

Started by mrb
over 13 years ago
Posts: 39
Member since: Jan 2008
Discussion about
Are there any complications with buying a property illegally converted to rent to three tenants in the past? We would likly use it as a 1 family/2 family.
Response by generalogoun
over 13 years ago
Posts: 329
Member since: Jan 2009

Would you "likely" use it as a one or two family? Not sure? If you're thinking of using it as an illegal 3-family, you'll get busted one of these days. If it's in Queens, it will probably be sooner rather than later because there's new personnel at the DOB office who aren't looking the other way anymore. There have been too many fire fatilities and, at least where we live, the neighbors turn people in now for illegal conversions.

You would have to get rid of the illegal parts of the conversion -- i.e., illegal staircases, extra kitchens and bathrooms, extra utility connections, tear out the basement or attic apartment and return it to status quo ante. If the house has been cut up into illegal dormitory-style housing, you would have to fix that.

If by "complications" you mean, can you legally buy the house as is? That's a question for your lawyer.

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Response by mrb
over 13 years ago
Posts: 39
Member since: Jan 2008

We would not even consider using it as a 3 family. Thanks for your response.

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Response by generalogoun
over 13 years ago
Posts: 329
Member since: Jan 2009

I've been sitting here and thinking about your question. The legal problem for the buyer is getting rid of the illegal conversions, I think, more than actually buying the property. We live in an area of many illegal conversions (definitely a sore spot for me because I am a member of the Community Board) and what we see is that the realtor tells the prospective buyers not to worry about it so they can make the commission. Then the buyer takes possession and DOB comes and tells them they have to do lots of renovations. I am a lawyer but this is not my area of expertise. That's why I suggested that you talk to someone who knows the legal answers. From my experience as a civic association president and CB member in an illegal hotspot in Queens, I'd say the sellers should lower the price so you can use the money to make the house conform. The local Community Board can also be a good resource on this issue. The District Managers usually know everything.
If it were me, though, I'd look elsewhere.

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Response by caonima
over 13 years ago
Posts: 815
Member since: Apr 2010

no issue at all, those are the hot deals that you can break even in cash flow easily, go buy it asap

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Response by huntersburg
over 13 years ago
Posts: 11329
Member since: Nov 2010

Today is a caonima day.

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