illegal - Posted by Olga Manoukian

Posted by phil fernandez on May 04, 1999 at 12:06:33:

Perhaps. When you are selling the property the buyer’s title company or attorney doing the title search may well find that the unit is illegal. They will definitely find this out if it is required of them to check for zoning compliance like they have to where I live.

I would consult a local attorney on this matter to get his opinion.

illegal - Posted by Olga Manoukian

Posted by Olga Manoukian on May 03, 1999 at 16:40:08:

My offer got accepted on a duplex with an illegal unit. One is 2+1 & the other is 1+1 & the garage which is converted to a studio illegally. The house needs almost $10k work, it was priced for $179K & I am getting it for $170k.
I think I can sell it for $200k once it is fixed, do you think it is a good investment & whether I should pursue this considering that illegal studio.
I appreciate your suggestions.
Thanks Olga

Re: illegal - Posted by John(NH)

Posted by John(NH) on May 04, 1999 at 13:05:44:

Hmmmm I recently bought a ‘legal’ 3-unit building that actually has 5 units. We processed the loan as a 3-unit building. I had no problem with the title company, lender, or the city inspector. The numbers worked for as a 3-unit, so the extra two were gravy. Other than this weird quirk story, I have no advice to give… 8P

Re: illegal - Posted by phil fernandez

Posted by phil fernandez on May 03, 1999 at 19:07:02:


I don’t like to fight city hall over zoning violations. Lifes too short. I would not base my decision to buy this place on the rental income from the illegal unit. If the city finds out about it, you will no longer have that rental income.

Sounds like you have already got your offer accepted. I would have put a clause in my offer stating that it is the sellers obligation to resolve the illegal unit issue.

Re: illegal - Posted by Olga (CA)

Posted by Olga (CA) on May 04, 1999 at 10:52:50:

Thanks for your thoughts. Do you think I will have trouble to sell it because of that illegal unit?