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May 6, 2008

Garden Duplex

Many posts get close to the issue that we're facing but I wanted to start another because I'm sure there are many people facing the same issue.

We bought a condo apartment last year. A ground floor and basement/cellar duplex at the back of the typical 5 floor+ building built pre war on the foundations of a brownstone. The basement/cellar retains the original Brownstone walls.

The apartment had been remodeled to have a bedroom, living room and bathroom on the ground floor and the Kitchen/recroom + powder room down stairs. Both floors have doors to the building stairway (having been separate units in the past). Downstairs is zoned as commercial and upstairs is zoned as residential. Downstairs has a rear door opening onto a back yard, L shaped across the back and along the side 20 feet each and about 15 feet wide. This area backs onto restaurants and a gym business and has a 10 foot high canvas wall (which we plan are replace with soundproof walling to reduce AC fan noise - 4 fans)

We've retained an architect to advise us on remodeling the apartment and yard. We want two rec rooms and full bath down stairs and Kitchen and through open sitting room upstairs with a powder room.

This is the issue and my question.

We're advised that there should not be a kitchen down stairs and our remodeling would entail DOB inspection requiring us to remove it and put it upstairs (all plumbing it still upstairs although blocked off). The Architect advises us that the apartment had an illegal kitchen when we bought it and as such we may have a claim against the seller or their agent because without a legal kitchen it’s not an apartment. Also. Despite the fact that the only plans in existence (included in the offer documents) of the apartment show a full bath down stairs which has obviously been removed and replaced with a powder room we're also advised that we cannot replace the powder room with a new full bath.

Should we stop all plans and look for restitution against the seller or just face it that we've been done as any legal case we may have would in practice be too expensive and lengthy to chase.

I'd add that i think the downstairs is a cellar rather than a basement (More than 50% below the level of the front side walk) but as i said above is zoned commercial and shows as a doctor’s office in offer documents.

I've done my best to search the DOB website but can’t find any plans for the apartment. The architect and expeditor (who've now spent almost $12k of our money) say that the DOB has lost all plans for the apartment.

Any help/advice very much appreciated.

Comments

If your lower level is zoned commercial, how are you using it as residential? Isn't that illegal in the first place? I don't think that any of the past matters when you file new plans. It only matters what you propose to do.

I also do not think you can sue the former owner. It's not their fault that you failed to do your research when you bought the place. Maybe you were the only poor soul who didn't find out the illegality of their place so that's why you "won" the bidding war.

Your Architect is smart. You can only have a powder room in the basement.

Posted by: guest at May 6, 2008 11:51 PM

Its my understanding that most sellers do some sort of an "as-is" agreement at closing that releases them of any liability.

But even if this wasn't the case, what would your claim be?

Posted by: Mrs. Limestone at May 7, 2008 9:21 AM

New York City Administrative Code Section 27-2083 - Occupancy Of Cellars And Basements In Multiple Dwellings Erected After April Eighteenth, Nineteen Hundred Twenty-nine.

§ 27-2083. Occupancy of cellars and basements in multiple dwellings erected after April eighteenth, nineteen hundred twenty-nine. Except as provided in subdivision d of section 27-2082 of this article, no dwelling unit in the cellar or basement of a multiple dwelling erected after April eighteenth, nineteen hundred twenty-nine may be occupied unless: a. Every room in a dwelling erected after July fourteenth, nineteen hundred sixty-seven has a minimum height of eight feet, and in dwellings erected prior thereto has a minimum height of nine feet in every part, except that four beams each not more than twelve inches wide may extend a minimum of six inches below the basement ceiling. b. Every part of the ceiling of every such room is above the height of the curb level directly in front of each such part by not less than: (1) Four feet six inches for a room in a dwelling unit located in the front of the dwelling, or (2) Two feet for a room in a dwelling unit located in the rear of the dwelling. If the yard is sixty feet or more in depth, this requirement does not apply. Height above curb level is measured on the street on which the dwelling fronts. c. The level of any yard or court upon which a required window opens conforms to the requirements of subdivision eight of section twenty-six of the multiple dwelling law. d. Every room has at least one window opening upon a street, yard or court and is a part of a dwelling unit containing at least one room with a window opening upon a street or yard. e. A required window in every room shall comply with the provisions of subdivision c of section 27-2058 of article one of this subchapter, except that the total area of all windows in such room shall be at least one-eighth of the floor area of the room and the top of each window shall be located not more than one foot from the ceiling. f. Except as provided in subdivision g, not more than one apartment, as recorded in the certificate of occupancy, shall be located in the cellar unless the yard is sixty feet or more in depth. Such apartment shall contain no more than five rooms and a bathroom and shall be occupied either by the janitor or a rent-paying tenant, if no member of the family is under the age of sixteen years. No required window in any room of such apartment shall open upon a court less than five feet in width. Every part of the apartment shall be: (1) Within twenty-five feet of the inner surface of the front or rear wall of the dwelling, or (2) Have a window opening upon a court of the dimensions provided in subdivision seven of section twenty-six of the multiple dwelling law but in no event shall such court be less than ten feet in width. g. A maximum of three additional rooms may be located in the cellar exclusively for the use of persons regularly and continuously employed in the maintenance of such dwelling. Each such room: (1) Shall be completely separated from any other room or private hall; (2) Shall have access to at least one bathroom without passing through the apartment provided for in subdivision f; and (3) Shall comply with the provisions of subdivision f for required windows.

Posted by: guest at May 7, 2008 9:24 AM

I think you have to consult with an attorney regarding seeking recission from the seller. (I don't think restitution is the right type of remedy -- restitution usually means the return of money in order to make you whole, and because you have ownership of the property, you probably are already "made whole". Maybe you mean straightforward money damages.)

A lot of the analysis will rely heavily on the terms of the contract and other documents at closing. And yes, it may be length or costly to pursue, but if a decent remedy is available that may still be better than being stuck with an apartment that is nowhere near usable for you.

Posted by: guest at May 7, 2008 9:38 AM

Seems like you want to have your cake and eat it too. You want to put a full bath in the cellar/basement and 2 "rec rooms" because you want to use at least one of them as a bedroom with access to a full bath. In other words, you want to use it illegally. To fund this expensive venture, you want to sue the seller who had an illegal kitchen down there.

If you are suing anyone else shouldn't you be suing your own attorney and or inspector who didn't catch this situation during the due diligence period of the purchase. Or maybe you just didn't do your due diligence. Hmmmm.

Posted by: guest at May 7, 2008 10:50 AM

What 10:50 said. I find people like the OP amazing.

Posted by: guest at May 7, 2008 2:25 PM

What you're saying makes no sense, 10:50. Where does he say he -wants- to sue? He's reporting what his architect said. And nowhere does he imply he wants (or gains anything to speak of) by keeping the downstairs zoned as commercial. He's clearly stating his intentions and desired outcome, which is more than most people manage to accomplish.

Posted by: guest at May 7, 2008 3:30 PM

i have a new condo duplex (not illegal downstairs - cut out in back, and about 3 ft higher than curb in front - with lots of windows and egress). we put our bedrooms, laundry, storage and a full bath on the lower level (also have a small play area).

on the upper level, have kitchen connected to really big dining room with a lot of built-ins, a full bath, an office/guest room, and a big living room leading to the outdoors.

took almost 2 years of looking at condos to find a set up that we could configure like this (we did work moving rooms and plumbing around). BUT, it's everything that we wanted and more. the living room is on top of the master bedroom, so our child goes to bed and never hears us hanging out at night.

Also, soo quiet for sleeping and then 1000 sq. ft upstairs of light filled living space (have side windows).

see what you can do without having to file perhaps. do recommend our layout wholeheartedly though.

Posted by: guest at May 7, 2008 3:41 PM

So, spill the beans 3:41; did you file the job?

Posted by: johnife at May 7, 2008 4:18 PM

3:30, what are you on about?

The OP clearly asks if they should sue:

"Should we stop all plans and look for restitution against the seller or just face it that we've been done as any legal case we may have would in practice be too expensive and lengthy to chase."

And no where in my post did I mention the commercial zoning so I obviously never accused him of implying anything about such zoning. Where did you learn to read?

Posted by: guest at May 7, 2008 4:22 PM

3:41 nothing to file... the bathrooms where there and clearly stated that the lower level could be used as bedrooms in the offering plan.

said it was not illegal, so not a totally great example, but just like the layout in general, hence, my story.

in a previous life (um, marriage) had actually lived in a brownstone, and really prefer having the big living spaces on one floor.

Posted by: guest at May 7, 2008 5:26 PM

The "downstairs" sounds like what is usually called "an english basement". There are all sorts of fire and building code reasons for not alowing a kitchen, notable ceiling height and % of space underground. Here in Brownstone Brooklyn, it is where most people put their bedrooms.

You can call it a cellar or a basement or anything you want - except a kitchen. If there was one there when you moved in, I am shocked. Be thankful and renovate around it - it was grandfathered in.

I wold be really pissed at my broker for not alerting me to these legal issues. isn't this covered under full disclosure?

Posted by: guest at May 7, 2008 6:21 PM

3:41,

"we put our ........ full bath on the lower level"

...a set up that we could configure like this (we did work moving rooms and plumbing around"

Sounds like a job that needs filing to me.

Posted by: johnife at May 7, 2008 7:20 PM

Nobody has suggested the real best solution: sell to some other sucker, find a new place and get it right next time.

Pay it forward, baby! Whoa!

Posted by: guest at May 7, 2008 8:35 PM

Thanks for the ‘frank’ replies many making the point that I’ve been a sucker here. That muck I knew already but the reason I posted here is to try and get get advice on the best way out of this mess. Buying advice has been very expensive and of very poor quality.

There are some helpful suggestions although I am not at all sure about finding another sucker.

We did what we thought was due diligence. Asking our attorney to make sure that everything about the apartment is legal for instance. They said its fine lots of hand waving and assurances that I shouldn’t worry and that I just don’t understand how things are work NYC.

Our Architect has pointed out that if the apartment was advertised and sold as an apartment the fact that it has an illegal kitchen would seem to indicate misrepresentation. His suggestions not mine.

I’m not a lawyer but presumably anything sold must be ‘fit for purpose’. The property was sold as residential apartment “with the commercial option”. I have the literature.

Reply May 7th 9.24 is helpful although I believe the building predates 1929. Reading through it we fall short of some points. Are there different regulations for building predating 1929?

The ceiling seems to be 1 foot lower than it needs to be (including drop ceiling) or barely compliant without the drop ceiling for example.

The COO shows the ‘cellar’ as an office/rec room in conjunction with 1st floor apartment. And tracking down DOB documents my self (the expeditor seems to be poor value for money) there is a letter of completion dated Jan 06 indicating self certification for work filed as a directive 14 – what ever that is. Further poking around on the website reveals the name and address of the certifying architect, the Applicant, applicant of record and filing representative.

I’ve independently established that the kitchen was fitted at this time and that the former full bath was removed to be replaced by a powder room.

Clearly DOB knows nothing of this.

The Offer documents show a floor plan completely different to the actual apartment with a full bath down stairs and no kitchen. Pretty close to how we want it.

Since the DOB have no idea what changes were made is it not possible to request grand farthing (a term I see used a lot but frankly I don’t fully understand it) of the old bathroom and renovate on that basis?

Several replies refer to my wanting to sue someone. To be clear on this, If my current position leaves me able to sue the seller then I would risk the same outcome were I to sell. I’d like to know this. If anyone can recommend an attorney to advise me on this point it would be helpful. My experience of NYC attorneys so far (the one I hired to advise me on this sale) can only be described in language the moderator would removed.

Right now I’m just trying to find out where we stand. After that the plan is to fix the problem by bringing the apartment up to code which could be a big job.

All replies, cutting and otherwise, appreciated.

Posted by: dprxxx at May 8, 2008 12:40 AM

One thing that I have learned from numerous dealings with the DOB, both with renovations and new construction is that building codes are guidelines. If you can show that something can or should be done a different way, many times it will fly. I've even had inspectors fail something, or insist upon something that would cause such a problem that I've called a supervisor and had the supervisor overrule the field inspector ( and no, no money changed hands).

Posted by: guest at May 8, 2008 6:42 AM

I am not a lawyer and this is not legal advice.

If I'm understanding you correctly, you knew that on some level this set-up was not exactly kosher, is that right? I don't mean to sound accusatory, but this statement about your own due diligence leads me to that belief:

"Asking our attorney to make sure that everything about the apartment is legal for instance. They said its fine lots of hand waving and assurances that I shouldn’t worry and that I just don’t understand how things are work NYC."

That you're buying a legal dwelling should be a given for your attorney. The very first thing your attorney ought to have done is warned you that this apartment had an illegal kitchen set-up and that this sort of situation might arise in the event you undertook any sort of reno or re-sale of the apartment. They ought to have advised you against purchasing it for this reason. Were I to consider suing anyone in this instance, I'd look first at your lawyer. The brokers involved in this sale should also be disciplined, IMO. They took advantage of your naivete; it happens.

That said, you've already thrown good money after bad in this situation. If you choose to file suit against the seller, your own incomplete due diligence will become a central issue in the matter. (I was a paralegal for many years, so I know of what I speak.) Regardless of the outcome, you will likely be stuck with a rather hefty bill for legal services on top of what you've spent for your architect already, and that's before even considering what litigation would cost you if things escalated to that point. It's tempting to want to make someone else pay for landing you in this mess, but, ultimately, you made the choice to buy this unit knowing, it seems, that the set-up was potentially a legal issue. Also bear in mind that the remedy you seek in this is unclear - what is it that you want exactly? To be rid of the apartment? A refund of your purchase price and closing costs? Some sort of monetary award to cover the cost of reconfiguring the place?

Were I you, if you are determined to renovate, I'd look first at how you can reconfigure the unit to conform to code. Your architect is telling you they are not willing to be on the hook for illegal work. True, there are probably numerous basement/cellars all over the city that have been let or sold as dwellings while the city looked the other way; demand for housing is responsible for this practice, I'm sure. Doesn't change the fact that your architect wants no part of an illegal reno for obvious reasons that could potentially affect their business. Move the kitchen back upstairs and move your bedroom downstairs to the streetside of the unit, construct the rec room to open onto the garden, and settle for a powder room rather than a full bath. If you go to sell at any point, you'll be glad you did; you'd hate to be the seller to someone else that this seller was to you, wouldn't you?

A great, Brooklyn-based attorney who might be of help to you, if only to ease your mind, is Naomi Gardiner. I don't have her number in front of me, but several friends have used her for their RE needs and been wholly satisfied. Good luck.

Posted by: guest at May 8, 2008 10:03 AM

I guess I don't see what the big deal is about. If you want a kitchen upstairs, then put one in because that's what's legal. If you want a full bath downstairs, then put one in, but realize that you should make it a half bath when it's time to sell. If you want to sleep in your cellar you can even though it's not legal, but please don't put your kids down there without 2 means of egress. I'd hate to read about them dying in a fire they couldn't get out of.

Posted by: guest at May 8, 2008 10:48 AM

Guest. 10.03.

Thanks. A little context might help here. We’re from the UK and have no experience of buying property in NYC before this. In the UK I’ve bought and sold many times and standard practice there is that if I were to ask my Attorney to make sure that everything was legal about a property then that’s what they must do.

Typically this results in a search to make sure the seller owns the place and that there are no plans in place to build a sopping mall right next door etc. This would also reveal whether the building had been altered and that alterations were carried out in accordance with ‘building regs’ – Code in NYC.

Our concerns related to the fact tat the selling materials described the cellar as having commercial R5 zoning and we wanted to make sure we were allowed to use the cellar as part of a residential property. Frankly I wanted to make sure that some inspector was not going to turn up one day and demand to see evidence of my doctors business.

I added that while they were at it I’d like to know that all renovations were to code too.

We instructed accordingly and Our Attorney did some kind of search (as I recall we paid hard cash for this, incurred the wrath of the seller accusing us of unnecessary delay and the repeated comments from our attorney that this is unusual in NYC and that by doing this we risked losing the property. None the less we insisted.

What we got back from our attorney was that everything is fine.

I now believe that this advice was strictly correct because (1) the COO confirms that the cellar is part of the ground floor residential property and can be used as such as a recreation room and (2) the renovation work was ok’d by the DOB under directive 14 – Architect self certification. The fact that this self certification seems to have been in breach of code would not have shown up and of course it was only after closing that we’ve discovered NYC cellars should not have kitchens.

As for what we want to achieve. Well we like the apartment and the location and have no plans to leave NYC any time soon. We bought it with in intention of improving it.

Now, however, and knowing more about code requirements the options for improving the place are much less attractive so while we’ve not given up on the idea we may well just leave it as it is.

A concern is that if we make no changes what happens we do sell or possible rent the apartment out? Asking ‘who could we sue’ is really ‘who could sue us’.

I don’t want to, as has been suggested, find some other sucker sell the apartment.

This post has been very helpful. I’m left with the thought that Directive 14 leaves a aping hole for people unfamiliar with the regulation to fall in to. If an architect certifies against code then the buyer and the seller and the DOB and the attorney can be caught out.

Posted by: dprxxx at May 8, 2008 11:03 AM

Guest. 10.03.

Thanks. A little context might help here. We’re from the UK and have no experience of buying property in NYC before this. In the UK I’ve bought and sold many times and standard practice there is that if I were to ask my Attorney to make sure that everything was legal about a property then that’s what they must do.

Typically this results in a search to make sure the seller owns the place and that there are no plans in place to build a sopping mall right next door etc. This would also reveal whether the building had been altered and that alterations were carried out in accordance with ‘building regs’ – Code in NYC.

Our concerns related to the fact tat the selling materials described the cellar as having commercial R5 zoning and we wanted to make sure we were allowed to use the cellar as part of a residential property. Frankly I wanted to make sure that some inspector was not going to turn up one day and demand to see evidence of my doctors business.

I added that while they were at it I’d like to know that all renovations were to code too.

We instructed accordingly and Our Attorney did some kind of search (as I recall we paid hard cash for this, incurred the wrath of the seller accusing us of unnecessary delay and the repeated comments from our attorney that this is unusual in NYC and that by doing this we risked losing the property. None the less we insisted.

What we got back from our attorney was that everything is fine.

I now believe that this advice was strictly correct because (1) the COO confirms that the cellar is part of the ground floor residential property and can be used as such as a recreation room and (2) the renovation work was ok’d by the DOB under directive 14 – Architect self certification. The fact that this self certification seems to have been in breach of code would not have shown up and of course it was only after closing that we’ve discovered NYC cellars should not have kitchens.

As for what we want to achieve. Well we like the apartment and the location and have no plans to leave NYC any time soon. We bought it with in intention of improving it.

Now, however, and knowing more about code requirements the options for improving the place are much less attractive so while we’ve not given up on the idea we may well just leave it as it is.

A concern is that if we make no changes what happens we do sell or possible rent the apartment out? Asking ‘who could we sue’ is really ‘who could sue us’.

I don’t want to, as has been suggested, find some other sucker sell the apartment.

This post has been very helpful. I’m left with the thought that Directive 14 leaves a aping hole for people unfamiliar with the regulation to fall in to. If an architect certifies against code then the buyer and the seller and the DOB and the attorney can be caught out.

Posted by: dprxxx at May 8, 2008 11:03 AM

The missing part of this puzzle is the condo board, who you don't mention. Fyi, much brownstone construction around here is under the radar, no filing with DOB and no CO. So in a house you could probably just do what you want and take your chances. Quite often when you sell, it's 'as is' and the seller takes what he gets and deals with the problems, if any. We certainly did, in a house which had been a rooming house, and had neither a CO or a CNO.

But in a condo, the board is usually more stringent than the DOB. So what do they say about this issue? I'd think they were concerned about the commercial property being used for residential?

Posted by: cmu at May 8, 2008 11:37 AM


Simple solution:

1) If you plan to sell soon, do everything legally.

2) If you really want a full bath in the cellar, disign one that can be easily converted to a closet or some other use before you sell.

3) Forget about sueing anybody. The laws in New York protect the seller and legal costs would be prohibitive.

Figure out the simplest solution and don't worry any more. You're lucky you own a townhouse to begin with.

Posted by: guest at May 8, 2008 11:38 AM

Ah, thanks dprxxx. That makes sense now. Of course you're not trying to sucker anyone in to anything. And I get why this is a big deal to you - you feel like you got duped and, on top of that, you're being told you can't do with your own home what you want to do.

Still sounds to me like your attorney dropped the ball and the brokers were either uninformed or were pushing hard for the sale. I guess welcome to New York on that one.

"We instructed accordingly and Our Attorney did some kind of search (as I recall we paid hard cash for this, incurred the wrath of the seller accusing us of unnecessary delay and the repeated comments from our attorney that this is unusual in NYC and that by doing this we risked losing the property. None the less we insisted."

Huge red flag, at least insofar as your attorney goes. Their job is to protect your interests, not discourage you from having all the information you need to make an informed purchase. After all, what do they stand to gain? A couple of grand more quickly than if you hold off and buy a property without these issues? So what you risk losing the property? That's always a risk before you go into contract. Minimizing that risk and maximizing your bargaining power is your attorney's job. They're supposed to run interference between you and the seller. Guess we know why the seller was in such a hurry to close.

Your architect sounds like a stand-up guy. I'd talk with him leaving aside all these potential legal issues and ask for a straight forward estimate of what it would take to get the place up to code and improve its current layout while giving you max enjoyment now and re-sale value in the future. If, of course, you don't choose to walk away from all of this, leave it as is, and take your chances down the road.

Again, best of luck. Oh, and FWIW, do try to avoid litigation - it's just a complete hassle and it may cost you your enjoyment of a home you clearly love.

Posted by: guest at May 8, 2008 11:50 AM

Also, litigation will drag on for years, and if you do decide to move before it is completed, you won't be able to sell it to anyone.

Yeah, finding a new attorney at that point would have been advisable. (Brokers here are generally useless and you can't rely on them not to lie about everything.) Your attorney was telling you the truth about possibly losing the sale - but should have advised you better about that not being such a bad outcome in this case, given the issues. While it is true that much renovation is not filed, and you buy as is and it turns out fine, the cellar issue should have raised a red flag for your attorney in this case.

Many attorneys in these deals are looking solely at their own bottom line - that they won't get paid if the deal doesn't close - rather than being upfront and correctly advising their clients. (Those who are afraid they won't be paid for their work if a deal doesn't close are better off asking for a retainer to cover that possibililty.)

You gotta walk away when the professionals you hire don't answer your questions to your satisfaction, even if it means losing a place (as in those cases, that is often the best outcome for you.) You didn't, and it seems you can make it both code compliant and workabale for you, if not perfect.

Posted by: guest at May 8, 2008 1:53 PM

What was the lawyer supposed to do? He told the truth when he said that this is how things are done in brooklyn and when he said you could lose the place because the seller felt you were delaying the deal.

The seller probably is from old school brooklyn when things were done differently and there was never any problem with the DOB butting in. Today, for better or for worse, it is different to some extent.

This is the bind the lawyer is caught in. They tell you the truth that things are still just done any which way. They also checked to see that the renovations were signed off by an architect. Was the lawyer supposed to go in there himself to measure and see that it's a cellar rather than a basement? They checked with the DOB to see how an architect filed and it came up clean. You now have another architect saying it's not. This isn't your lawyers fault and may not even be the seller's. The other architect may simply have a different opinion.

As far as I can tell the only issue here is that you want a full bath and your architect says it's not to code. You can definitely find an architect and a GC who will help you put one in that can be converted back to a half bath when you want to sell. No big deal.

Posted by: guest at May 8, 2008 3:02 PM

If it's any help, we recently bought a brownstone and began planning a renovation, which we hoped would include a full bath on the bottom floor. Our architect reviewed DOB records, which said that the bottom floor was a cellar, and therefore, we could not legally put in a full bath. Just by looking at it, we were convinced that the bottom floor met the requirements for a "basement" designation. So we commissioned a fresh survey, and indeed, it came back our way. To this day, we don't know what the original "cellar" designation was based on, because we could not find any prior survey with that detail included. A survey is not that expensive, and if it comes back in your favor, it may solve some of your issues.

Posted by: guest at May 8, 2008 4:29 PM

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