I'm about to put an offer on a property in Haddon township, NJ. Unfortunately, one of the unit turns out to be an illegal unit. The unit has been there for over 20 years. My question is, is it worth getting a legal permit for it or just run it on the down low? Is there a penalty for running an illegal unit?
Investor · Cincinnati, OH · Member since 2008 · 319 posts · 243 votes
6y
Well, there is now a searchable record of you knowing about this unit being illegal on the internet. So there is that.
Zoning could potentially take action on you/your property.
The biggest worry would be what would happen if there was a problem at the unit, like a fire or a death. Which would not only be on your conscious but there could be some pretty steep financial liability. Probably also criminal charges could come if that happens.
Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
6y
@Chris Spespy since you have not closed now's the time to find all that out. I'd call the zoning department and talk to them. Many places have been extending the rules in order to provide additional places for people to live. It would be worth finding this out as it would have a sinificant effect on income. All the best!