Legal Implications & Ramifications : As an example; the iconic PCH homes in Malibu and many in the upper foothills might not permitted to build back, certainly not to the same extent or materials.

Typically, RS3 permits SFHs and two-flats, by right.

Make sure any renovations comply with local regulations and obtain the necessary permits if plumbing changes are involved.

Similar areas that have legal under utilized permitted space convert to max studios that you can fit.  

Then progress to permits and then building.You could also just do it and hope the city doesn't notice, which they probably won't.Your challenge will be getting Certificates of Compliance on the units!

This is why the big corp builders or regionals control so much of the larger developmentsthe deals i funded are 34 lots 160 lots and 80 lots respectively and each of them have contracts on them by Toll and Lennar and one regional but they only close when we have permits in hand. 

Make sure you do an OPRA request to check for open permits and confirm with the town whether the 2/1 below is legal and permitted.

My understanding is that the ballpark standard of "unless it would be outrageously tough" (something along those lines) is what applies if you're doing a rehab, seeking new permits, doing structural changes anyways, and things of that nature.For existing pre-ADA structures, my understanding is that the standard is more along the lines of "if it can be easily/cheaply done, you have to do it."

There is a provision in all my contracts that permit me to assign the contract to a newly-formed entity that I control.

We have requested permits to fix this and have not heard back yet.