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June 3, 2007
lack of co for converted garage space
We are considering buying a home that converted the attached garage to living space, but didn't obtain the appropriate certificate of occupancy. The seller is elderly and does not want to hold up the process of selling the home and has proposed that we the buyer take on the responsibilty of obtaining the CO. We understand this could be an issue with obtaining financing from a bank, but are there other risks?
Comments
yes, what if the conversion is not legal. Then you'll be fined and have to convert it back to a garage. I would do much more research on this before you buy it. Changing a COO can take up to a year to do and cost you thousands of dollars. I would ask an expediter for a quote and deduct that price from your offer (plus 20%, because there will inevitably be extra charges that the expediter doesn't give you).
Posted by: Alex at June 3, 2007 11:34 AM
I'm no expert but I think much of this will depend on how the space is being used. If it is a separate apartment then you will need a new C of O. If it's just a livingroom you will need to get whatever work that was done approved but I don't believe it will require a C of O change. Things like adding a kitchen or a bath in the space add a little scrutiny by the DOB but if some sheetrock and insulation was put up and that's it then it shouldn't be a big deal.
Best bet is to get an architect/expiditor out there to give you an opinion of time/cost as Alex mentioned.
Posted by: Anonymous at June 3, 2007 1:55 PM
How are YOU going to use the space? If you're converting it back to a garage, I wouldn't worry about it. It may or may not become an issue before the closing. You can ask for the $ off price or seller's concession to deal with it (my guess around $20-30k). If the bank won't close because of it, he has to do something about it. Is this a very desirable house at a fair price? If you think it's something someone else will snatch away from you and you'll regret it, don't make too many waves.
Posted by: Anonymous at June 3, 2007 2:21 PM
I'm curious, what do your lawyer and mortgage broker say about it? To me, it's a garage used as an artist's studio . . . but then I'm not the DOB ;-)
Posted by: John at June 3, 2007 4:41 PM
I'm curious, what do your lawyer and mortgage broker say about it? It sounds like it's a solvable problem without $30k in paperwork. Had similar issue come up with a place I almost bought. Mortgage broker and title company would apparently have been able to work it out.
Posted by: John at June 3, 2007 4:43 PM
Does this raise any issue with F.A.R. I've been seeing this on a lot of properties these days. I really don't know if it changes anything being used as a garage vs. living space, but something my obsessive brain would worry about. By the way, I'm the guy who keeps getting properties swiped from me vecause I'm apparently the only one who obsesses over due diligence. It seems most buyers in this market of very limited inventory are just buying and worrying about it later. Best of luck whichever way you go.
Posted by: Anonymous at June 3, 2007 4:53 PM
4:53, that was my point @ 2:21. If you think it's THE HOUSE, go for it and worry about it later. Otherwise, you'll be procrastinating for years.
Posted by: Anonymous at June 3, 2007 10:24 PM
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