No letter of objection on a house without C of O = dealbreaker?

Hello everyone! Please help me decide if no letter of no objection on a house without C of O is a dealbreaker! I’ve been trying to go into contract on a house that is presented as a 3 family. There is no C of O, as the house was built before 1938\. We’ve asked the seller about a letter of no objection and were waved away, them saying something like “That is not/won’t be a problem, we’ll worry about it later” That time has come and they have nothing to show us. We thought they were hiding something and went to the DoB ourselves- the DoB does not have a folder on the house – so no old plans to view. There is a past violation that mentions that the “DoB records show that this house is a legal 3 family” in the comments. When asked how they came up with the family # designation at time of violation, the person at the DoB kind of shrugged and said that they probably relied on what the Department of Finance says (that it’s a 3 family) since they have no supporting documents at DoB. The HPD considers it a 3 family too. There is no I-card. Our lawyer had title companies do a title search and they came back saying it’s a 1 family. How they came up with this info, I don’t know. The DoB had nothing. It is very possible is that it was converted before 1938 – the reason I think this is the following: the construction type of this house is II-D (“protected wood frame” – which means it’s a brick filled wood frame). Thanks to a fellow brownstoner, I found out that brick additions were often done after the war to accommodate the influx of soldiers and allow 1-2 family homes to be converted to 3 (since 3 family homes had to be made with fireproof materials after the 1938 code). Basically, they put more floors on top and had to fireproof the rest by filling it with brick. Maybe some original documents show the house as a 1 fam, built in 1886\. Still, that is just speculation and proves nothing. I am getting the sense that the seller is going to reluctant in getting a letter of no objection. On the one hand, there is nothing at DoB that show it’s not a 3 fam, so it can’t necessarily be denied, but I just don’t know what they can show as supporting documentation for LNO. How difficult is it to acquire one of these letters? Does anyone have experience with that? The house has 3 electric meters, 2 gas meters (cooking and heat/hot water), is set up as a 3 family (3 kitchens, 5 bathrooms) I just don’t want to have any problems – if say, I need to refinance or sell some time in the future, or with tenants who want to start a stink about it. My mortgage broker says financing should not be a problem (for the intial mortgage). I would be relying on tenants to help with mortgage. Any advice?

Kateruba

in Dept. of Buildings (DOB) 13 years and 4 months ago

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slightREobsession | 13 years and 4 months ago

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Our house had the same issue. Used as a three family for forever, DoF has it as a three, HPD had it as a three, I-card had it as a three, no CofO. The title company somehow dug up the original building permit from 1890 and it was build as a one family and first converted in ’39\. So technically it should have received a CofO then but didn’t. My lawyer insisted that the seller obtain a LNO and they did, took about 4 weeks. Even though we might well have been able to close without it (I can’t remember if it was an issue for the title company, it wasn’t for the bank) I’m glad we got it taken care of. If there is clear proof that it’s a one family (where did your title company find that information?) then there is a discrepancy between what you agreed on and what is offered and the seller really has no option but to remedy or let you out of the contract.

adam_dahill | 13 years and 4 months ago

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You will be fine. It’s very common.

northofditmas | 13 years and 4 months ago

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Relax,  Relax a lot.  If this was a problem it would be your lawyers problem.  I bet your lawyer told you to relax too.  Maybe your lawyer is terrible.  Relax, if the title company gives the mortgage company the thumbs up you get the house.  All the lawyer needs to do is some the math on the escrow.  You will have a lovely house at a really low interest rate.  Be happy.  In the future you have two options.  You can sell as a house with no file (some people prefer this since they can get away with a lot inside). If you think that no CofO will hurt you well maybe in 5 or 10 years you will pay an architect the draw up plans and get a CofO.  Easy, right?  Relax.

jockdeboeraia | 13 years and 4 months ago

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718-354-7926\. In a meeting right now. Call me after 5.

Kateruba | 13 years and 4 months ago

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Dave – I am worried about re-sale. I am planning to stay at the house long-term, but sometimes life doesn’t go as planned. Who knows in what direction laws will change? When/if I am forced to sell the house, maybe banks will be stricter with financing with such DoB uncertainty present. Also, difficult tenants. I am planning to be an understanding and considerate landlord, and am planning to closely screen potential tenants, but you just never know. What if they are savvy and decide they want free rent and I have to take them to housing court and there is this DoB uncertainty, and it will be my evidence against theirs in terms of proving how many families this house is meant for? I don’t want to be forced to get a C of O, it’s not something I can afford. And I don’t want to feel that I am possibly buying a 1 family house for the price of a 3 family .

jockdeboeraia | 13 years and 4 months ago

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Sorry! I am going blind. I suppose you are right to be worried. You may have an illegal 3 family. Very hard to say. If you want, give me a call.

jockdeboeraia | 13 years and 4 months ago

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See what the I-card says.

daveinbedstuy | 13 years and 4 months ago

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Why is a LNO necessary???  if there’s no C of O then there won’t be financing issues and that’s what your mortgage broker is telling you.