Non-Legal Multi-unit

[Jason Hartman]

Hello, I've recently purchased a 4-plex in a historic neighborhood in Indianapolis, and have run into a big snag.  To give a little context, this is a house built in 1890 that was converted into four 1 bedroom apartments at the time of the Great Depression.  They actually did a good job with this, but at present, it's a big fixer needing cosmetic remodeling, but also all new systems.  I knew this going in and paid cash for the property, allowing for a better deal.  I've purchased duplex properties in historic neighborhoods before and haven't really run into big problems renovating, however, because this property was built as a single family originally, I am.  I was prepared for extra hoops to jump through, but I learned after the purchase, that the seller (who is a licensed realtor) did not disclose that the house is actually a non-legal multi-unit.  It isn't that it's a legal non-conforming, but it is non-legal altogether, and he listed it as a multi-unit for sale.  This of course impedes much of the renovating that's needed, but I'm also concerned that even if I could get the permits for the renovations, I won't be able to resell it down the road.  Has anyone dealt with this?  Do I have any legal recourse against the seller for not disclosing?
You can try to get a Legal Non-Conforming Use Certificate (LNCU) but it's expensive, very labor intensive, and you still may not even be approved.  
Any help would be hugely appreciated.  

[Jeff B.]

Originally posted by @Jason Hartman:

Hello, I've recently purchased a 4-plex in a historic neighborhood in Indianapolis, and have run into a big snag.  

 that the seller (who is a licensed realtor) did not disclose that the house is actually a non-legal multi-unit.  It isn't that it's a legal non-conforming, but it is non-legal altogether, and he listed it as a multi-unit for sale.

That's a violation of the RE code in every state.  Tell him to rescind the sale and fully refund your funds OR you will report the case to the Board of Real  Estate and seek to get his license revoked.  You have no need to be polite nor courteous in this matter.