Permit for bottom unit before offer?

[Ryan Cheung]

Hello,

I am looking into purchasing a home that is currently being used as a 3 family home. However, when I went to see the house, the agent told me that the bottom unit of the home is a legal fourth unit, but the owners just decided not to fill it so that they can avoid any rent control issues. This bottom unit is almost entirely above ground, so I do not really see any issues as to why this unit would not be able to be used as an additional unit.

My question is, do I have to get a permit from the town saying that this unit is legal BEFORE submitting my offer for the house? Can I list this as part of the inspection contingency in my offer?

Also, from my understanding, rent control is based off of the last documented rent that the town has for each unit in the home. My agent called the town asking about the current rents they have on file, and they said they do not have any records. Does this mean that I am able to charge market rent and document those numbers and have those be the rents they have on file, and raise rents 2.5% per year on the rents that I set? Any advice would be helpful. Thanks!

[Neil G.]

knowing that it was once a 4 just provides some assurance that zoning likely still allows a 4, but other than that just imagine all the permits, approvals, inspections, fees, etc required and the time and labor/materials it takes nevertheless. 

to me it matters what it is now (not what 'used to be') and so i'd offer 3/4 of what i was going to offer when the agent swore it was a legal 4; i woudn't write an offer contingent on coversion, as it is what it is, a 3fam with an extra walk-in area (that likely belongs to one of the 3 units under current C of O).