Non Conforming Triplex

[Christian Valencia]

Hi BP Community! I wanted to get you opinion on potentially purchasing a triplex with a nonconforming unit. We’re in the process of purchasing an off-market deal. Our realtor, seller’s realtor, and seller claim the property is a legal three-family property. Taxes, deed, and field card show it’s a three family property. The main structure is a duplex (1BR/1 BATH in each unit) and there is a detached cottage (1BR/1 BATH) in the back of the property.

We really like the property because we can live separate from our tenants, location is great, and cash flow as well. However, there’s a couple of red flags – only two meters (we would share utilities with one of the units), ceilings are very low, some rooms have no windows, and cottage doesn’t look to abide by current set-backs (it’s right on the rear neighbor’s property line). I’m starting to think the cottage is illegal/nonconforming.

Seller says they have no permits, but seller is still firm on this being a legal 3 family home. Contract that we have in place is that we are purchasing a legal three family home.

I reached out to city zoning and I’m waiting for Certificate of Zoning Compliance. However, because of Corona Virus, we’re looking at 60 days for a response. Seller is not willing to wait that long.

This is our first multi-family deal and almost every listing we come across there’s the “buyer’s do your own due diligence”, which frankly I think is crap because I interpret this as the seller can say they’re selling a triplex that may only be allowed to operate as a duplex. How is this even legal? Can I just do the same thing that seller is doing to us and say that we're selling a 3 family that may actually not be?

What are your thoughts / advice? Please help!

- Christian