Permit search for conversion from 2-flat?

Question

Is there a way for me to see if a permit was pulled to downzone a building? I'm looking at a purchase that is apparently a SFH right now, but it's listed as a multi and the listing states that tax records show a multi.

Also, how do lenders determine if a building is single or multi? Is it due to use or based on the actual permits pulled? I'm considering buying the place as a SFH and reconverting it back to a 2-flat after I move in.

Prashanth Mahakali · Answer

@Lucas Hammer

Google “chicago building violations”(yes, even though you are not searching for violations)

-click on link that takes you to city of CHicago website and click “get started online”)

-click “i accept the terms of this license”

-enter address

- will give your list of all permits pulled and results of any city inspections along with violations

- anyone can do this and you only pull a FOIA request if you don’t see any records from this search or if you find a permit but want more details on that( if you want to see drawings for that permit but you are not the owner, then you ask the seller to sign the foia form or authorize you to apply for it!)

Hope this helps.

Prashanth

Account Closed · Answer

Depending on the situation, I agree with multiple previous suggestions. Working carefully to define your contract may be the right course of action. Illinois has developed an entire body of common law surrounding the purchase and sale of property. State law also limits the legal and financial remedies that are available to real estate buyers or sellers who find themselves in the unfortunate position of a deal that has fallen through.

Crystal Smith · Answer

The wonderful thing about contracts is you can define your concerns & protect yourself by including contingency clauses. Clauses for inspections, confirmation of zoning, financing,..... All of this is part of due diligence. Some of the contingency languages is already included in standard Real Estate Board-certified contracts. It's just a matter of checking the right box. If there's a contingency clause missing, you or your attorney can add it. The seller can reject your contingencies but there's no risk to you if you structure your offer properly.

Kyle D Birch · Answer

@Lucas Hammer

What does your lender say? I have bought a 2 flat, 4 flat and multiple single family homes and all were 3.5% or 5% down.  The number of dwellings listed on the zoning cert did not affect the down payment.  Anything residential ie 1-4 units should qualify for low, owner occupied, down payments.

Lucas Hammer · Answer

Thanks @Vincent Incopero and @Prashanth Mahakali. It's being marketed as a single family home converted from a 2-flat. I know the zoning is RT-4 so it's allowed to have up to 4 units at that address. More than anything I'm looking to hopefully get a small down payment as a SFH and eventually convert it back, but the listing is specifically saying that "tax records could show as a 2-flat" so I wasn't sure how lending would treat that if it's functionally a SFH at this point.

I wouldn't want to go through the hassle of getting an offer in, earnest money, etc. and then find out that my lender wants 15% instead of 5% because somewhere shows it as a 2-flat that I was unaware of.

Vincent Incopero · Answer

Lots to unpack here.

1. Zoning and the number of dwelling units are not necessarily one in the same. You can convert a property that is zoned as multi into a single family residence and this is becoming more prevalent in up and coming areas. Indicia of multiple units are utility meters, water billing records and ingress and egress points. An architect with significant experience in the Chicago area would be a good resource initially.

2. Listing information is deemed reliable but not guaranteed, meaning that you have to do your own due diligence. I suggest you engage a lawyer sooner than later.

3. Lender's determine the number of units based on the appraisal and how the property is marketed for sale. Lenders do not pull permits or perform any real due diligence.

4. If the long play is that it be a multiple unit in the end,you would be wise to make the contract contingent on the seller providing you with a 2 unit zoning certificate at closing.

Henry Lazerow · Answer

You could potentially close on it as a single family and then re-convert it. Before close the sellers attorney pulls the number of units how you ask him. The city will often let you downsize but from a straight up 2 flat to single family I am not 100% sure it would work you may need a commercial loan. I would talk to your lender and ask what they say.

Lucas Hammer · Answer

@Henry Lazerow Thanks for the info. Would you happen to know how a lender would view it? I'm not sure if they actually pull that info, if it's attached to the title, etc. Its only use right now would be a SFH which I could buy with 5% down and convert back if the numbers made sense.

Henry Lazerow · Answer

You can pull a FOIA with city. It's very common to come upon illegally converted 2 flats to single families in Chicago. If it looks unprofessionally done that's the most common result and likely still zoned as a 2 unit. City just doesn't know what the inside looks like.

Permit search for conversion from 2-flat?

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