Purchased as legal multi-family, but now it’s not?

[Craig T.]

My property was listed as a multi-family duplex. County and City Parcel information online reflects the current use as multi-family duplex. The transaction forms used during the purchase were all multi-family. I even inherited two tenants. However, both electrical panels are located in one unit and utilities are paid under one bill, not separate. I got a permit with the city to add a second electric meter and had an electrician move a panel to the exterior of the building so the other unit would have access to their own panel. The dept of construction and inspections came out and failed me because they said it’s not legally a multi-family and that it’s a single family. It was built in 1939 as a “SFR,” but there’s no permits with the city that it was converted, but it was changed to a multi-family in their system at some point. If it’s not just a misunderstanding, who is liable for this mixup? And what should I do? I would appreciate any advice!

[Chris K.]

@Craig T.

Moving forward, you always want to check the zoning information for all the properties that you buy. It's easier to deal with these issues before the closing happens. Until you are experienced, you may want to consider working with an attorney for to make sure you are correctly doing your due diligence.

In any event, I agree with others that probably the strongest argument you can make is to argue existing nonconforming use. The basic idea is that --- at one point --- the law allowed the owner to use this property as a duplex. At some point, the law changed to prevent the owner from doing so. In those cases, the owner generally has a constitutional right to continue with the existing use.

Here's the thing: what we think of as “zoning” didn’t become popular until the early 20th Century. In fact, many legal experts back then thought municipalities were violating the US Constitution by engaging in this new thing called "zoning." The SCOTUS only ruled on the validity of zoning until the 1920s. Once it did, zoning laws became very popular. But my understanding is that it took some time for it to spread from cities to rural areas. 

With the above in mind, you may want to (or ask your lawyer) to do some investigation into this. The lack of permit record isn't necessarily dispositive of the issue --- a lot of municipalities in the old days were not as strict when it came to building permits. So many of them did not keep a good record in the old days. And like zoning laws, building codes also didn't get popular until the 20th century. So there was somewhat of a learning curve for all the municipalities involved. 

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.