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Updated over 8 years ago on . Most recent reply

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Karen Griffith
  • Wholesaler
  • Newark, NJ
6
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12
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Illegal 3rd unit in a legal 2 unit house

Karen Griffith
  • Wholesaler
  • Newark, NJ
Posted

Question: I am looking to purchase a 2-unit house with an illegal 3rd unit. Upon purchase will the illegal unit need to be removed? In the case that I was not looking to rent the illegal unit and place a family member in the unit does it still need to be removed, this will initially be an owner occupant purchase.

Secondly, what is the average cost of permits to make the unit legal in New Jersey.

Thank you in advance

Most Popular Reply

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Darren Sager
  • Investor
  • Tampa, FL
1,685
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2,072
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Darren Sager
  • Investor
  • Tampa, FL
ModeratorReplied

@Karen Griffith in order for you to close on the house in most cases if it's in good condition you're going to be required to get a CO (Cert of Occupancy) before closing.  If there's an illegal unit chances are they're going to make the current owner remove the items which make it illegal (most cases the stove). You will not be able to rent it legally. Your insurance in most cases will not cover you if you do and something goes wrong.   You'll have zero protection if that illegal unit does something to another resident or damage to the home.  

Many here are okay with illegal units because "everyone is doing it around me" and that going along with the herd mentality will get you in trouble long term in my opinion.  

@Todd Fox is spot on about zoning.  Although I have no clue about Manessa Pallardy's website is, Todd please explain.  If the house is zoned for 2 only, there's no way you're going to go up against city hall and win in getting zoning changed to allow you that extra unit.  There are in some cases where a 3 or a 4 was built in the past and are legal.  Those are what's considered non conforming use.   Those are okay but again, they're grandfathered in per se and the one you're looking at is not.  

  • Darren Sager
  • 862-208-2287
  • Podcast Guest on Show #48
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