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March 25, 2008
C of O murkiness - how risky?
We're in contract on a 3-story brownstone currently used as 2 family, and represented to us as 2 family. However, inspector suspected it might really be a 3 family since it has fire escape in back (and something about the boiler too). NYC web site is confusing since Dept of Bldgs only PDF of a C of O is from 1947 and shows a 3 family C of O. But the Dept of finance lists house as 2 family. Inspector said the risks of having contradictions like this are: 1) tax liability - if it's really a 3 family, the city could find out and then impose higher taxes; 2) insurance issues - if we ever had to file a claim, an adjuster could reneg due to a technical inconsistency in C of O (that is, if we insure as a 2 family, but insurance agent finds that it is 3, or vice versa). Adding to murkiness is contract has clause giving seller right to back out if C of O's were not properly filed during alterations.
Does this sound like a typical issue that comes up with brownstones, or does it sound like a huge warning bell? We plan to renovate so will have to file permits anyway, but just want to be sure there's not some weird risk given the confusing C of O issues.
Comments
So typical
Posted by: guest at March 25, 2008 11:33 PM
But it shouldn't be. It stems from ignorance of the process and requirements along with failure of the city to enforce.
Posted by: guest at March 25, 2008 11:41 PM
Aren't 2 and 3 families in the same tax category?
My house has no c of o, is listed as a three family with department of finance, but as far as I can figure has been used as a two family for decades.
Posted by: Putnamdenizen at March 26, 2008 9:17 AM
This is from an article in 1991:
"State law (and long-standing practice) divides all real estate in New York City into four categories—homeowner (one-, two-, and three-family homes), other residential, commercial, and utility"
Posted by: guest at March 26, 2008 9:57 AM
This is from an article in 1991:
"State law (and long-standing practice) divides all real estate in New York City into four categories—homeowner (one-, two-, and three-family homes), other residential, commercial, and utility"
Posted by: guest at March 26, 2008 10:00 AM
The more official document:
http://www.nyc.gov/html/dof/html/pdf/08pdf/nopv07.pdf
Posted by: guest at March 26, 2008 10:01 AM
2 families fall under different tax and building codes to those that govern 3-4 families (hence your inspector's concern about the fire escape etc). I think your best bet in this situation is to seek opinion from your lawyer. That said, if you're in contract already and your lawyer hasn't yet raised this conundrum, I'd look for a different lawyer.
Posted by: guest at March 26, 2008 10:06 AM
Go away, housesearcher.
Posted by: guest at March 26, 2008 10:54 AM
My understanding is that your actual CofO is the one on file with DoB. So in your case, it would be 3-fam. As you proceed with obtaining a mortgage and insurance, my guess is that you'll find that the property will be considered a 3-fam.
The Dept. of Finance classification does not "override" or call into question the DoB classification; it is simply incorrect. If the Dept. of Finance noticed the error, they could change it, and that could have an impact on your taxes.
Posted by: guest at March 26, 2008 1:29 PM
1:29 is correct, the C of O record is a document pertaining to the Department of Buildings, not to Finance. Finance has nothing to do with establishing C of O's.
As an additional point, I am guessing from your description that you are using the DoB website as the source for your records. Please be aware that pre-1990's records are not necessarily on the website. Many are, but the accurate way to determine your C of O is to obtain it from the DoB directly, if you have doubts or suspicions about the accuracy of what you're finding online.
Posted by: Smokychimp at March 26, 2008 3:32 PM
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