Problem Carriage House in Philadelphia

[Anthony Zayas]

Greetings BiggerPockets community,

I recently purchased a carriage house bordering the Norris Square section of Philadelphia. However, it has come to my attention that the garage portion of the house was expanded many years ago, taking over land of the adjacent property. The previous owner has owned both of the properties and it has been within his family for generations. 

My concerns are: 

1. I want to do renovations to the property. Specifically get a use variance to legally have two apartments and have the bottom garage be used for commercial purposes. However, I have been told that when I submit site plans for permits. They will be denied since my property encroaches on the adjacent lot. 

2. I have been recommended a site plan, then a subdivision plan in order to legally go through the process of obtaining the portion of land in question on my deed (this seems pretty costly). 

3. Lastly, I have been recommended to obtain an easement of the land in question as well as rights to the outside wall of the adjacent property (my garage ceiling joist are attached to it). Can I still build on easement property? 

Knowing my objectives, which would be my best approach? This has turned into only 1 of the many headaches I have been experiencing with this poorly and illegally built property but thus is the learning process of real estate (this is my first investment property). 

In regards to cost I have been quoted thus far:

Site plan: $2450.
Subdivision Plan:  $2000 - $2500
Lawyer: $350/hr

Are these fair numbers? I am working on obtaining more bids for surveys. Don't know many lawyers. 

Property Information:

Address: 2319 N 5th St
Lot Size (legally) : 824 sqft
Zoning: RSA5
Area Encroached Upon: ~ 60sqft
Purchase Price: $70,000
Comp: $185,000 Addressed: 2347 N Philip St
ARV: ???

[Lynnette E.]

If the adjacent owner is willing to work with you, I'd hire a surveyor who can write a legal description for the area that is not your property, including the area under the carriage house up to and also including that wall.  Add any of her land you use like a driveway, landscaping area, etc. Then, also have him write the wall description... 4 inches wide, so long, where, whatever separately.

You need her on board before the surveyor starts writing.  Rework is expensive.

Depending on how much the other owner is willing to give, first ask if she is open to selling you the land under the carriage house.  If so, buy that and then have the lot line modified to include the carriage house up to the shared wall, any driveway you use, etc.   Add to the description that there is an easement for the use of the shared wall.  The easement includes any work that may be required to repair, replace, maintain, improve, every verb you may need, the wall and its use to support your roof and any additions or changes you make for your carriage house.  It is very important that HER deed is also modified to remove that property you bought and added to your deed and has the exact same verbiage that she is giving you that easement for ever and always for the wall.

Now, if she will not sell it to you ask for an easement and do the same thing--modify your deed and hers for the easement and shared wall, but put in all the verbs you need for the carriage house easement.  Make sure you add words for egress, ingress, parking, lawn or landscape, whatever you need.  Include the maintenance, driveway installation, improvements, repair, etc.  Think of everything you NEED.  After you negotiate that then try to get what you want too.  Put on the easement vertical expansion, etc.  

After you get the title fixed, then you try to get permits.  They may or may not let you build close to a property line because of setbacks, but you need to fix the title anyway.

If you had title insurance on the purchase they may be on the hook for this clean up.  NOT for building something new, but for title to the land under your carriage house.  Read your policy if you have one.

And something to think about when talking to the property owner.  If she sells the property to you, you will be paying the property taxes.  If she gives you an easement she still pays the property taxes for the land.  Either way you get to use the land, so it makes sense she should want to sell you the land.  That is the cleanest pathway, and it gives you the best hope for improvements.