Finding out if unique property is up to code.

[Frank Macias]

Hello BP members! I am looking at a unique property in Naples, FL that I want to know if it is up to code. This particular property has 2 single family homes (4/2 and a 2/2) and two efficiencies in the back of the property. Since all units are located on the same land and considered one property how can I verify these dwellings are up to code and won’t require costly modifications after purchase? Any help would be great. Thanks in advance.

[Jon Holdman]

@Frank Macias about the only time a building is 100% "up to code" is if the building was permitted and then finished before any of the applicable codes changed.  Building codes are updated every few years and cities adopt new codes some time after new ones are released.  So, being "up to code" is a moving target.  Typically existing work is grandfathered in when new work is done.

There are very few circumstances where a building must be brought fully into compliance with the very latest codes.  Maybe if it burned to the ground or someone was doing a full gut rehab where the building was stripped to the studs.  Much more commonly when someone does work on a building they will be required to do the new work based on current codes.  But things they don't touch are typically not required to be brought up to current codes.  The one exception I've encountered is smoke and CO detectors.  If you touch anything electrical, you're often required to bring the smoke/CO detector installation up to current codes, even it that means working in parts of the property you're not touching.

Here's a specific example.  Current codes require ARC fault breakers pretty much everywhere and tamper resistant receptacles.  Not long ago, ARC fault breakers were only required in some rooms (bedrooms, for one) and weren't required at all not all that long ago.  Tamper resistant receptacles are also a recent change.  But if you do a project one in one part of a house (e.g., finishing part of a basement) you are not (usually) required to add ARC faults or tamper resistant receptacles throughout the house.  Only in the areas where you're doing work.

Does that mean the house is "not up to code" after the project?  Yes.  Does that mean you have a problem?  No.  

You have a problem when there have been unpermitted changes made to a property.  Consider that basement finish property 10 years from now when codes have changed several times.  Part of that house conforms to codes of 10 years ago, part does not.  There may be other issue that the house does not comply with at all.  But an inspector would be able to determine the changes made for the basement finish were permitted and conformed with codes in effect at that time.  So, no problem.  OTOH, if the changes had been made without permits, and now there was additional work being done, an inspector might require some of the old work to be re-done or at least inspected.  Been there is a loan to a rehabber who was caught doing unpermitted work.  After taking the property deed-in-lieu, we were required to trench up plumbing in a finished basement to expose work that had been done decades earlier because it was done without permits.

For the property you describe you may also have zoning issues.  You would want to verify the property is zoned for the four units you have on it.  If the property is compliant with current zoning, no problem.  If its not compliant then it might still be grandfathered under old zoning.   That is, it was in compliance and then the city changed zoning.  This happens all the time, and existing properties are typically not required to be modified to current zoning. But if the property is destroyed then you may be required to comply when you rebuild.  Its also possible there may be an explicit variance for the property.  Or, you may be able to get a variance.