Building Permit Issues with Illegal Suite
3 Replies
Kieran A Kilgour
Contractor from Nelson, BC
posted about 1 month ago
Looking at purchasing a property that is a double duplex - 4 units, however the suites are not legal - electrical/heating is shared between the two units in each duplex, etc. It would be a huge project to bring the suites up to legal standards. The property inspection turned up roof issues - structural sagging, cracked joists, lack of moisture barrier, improper shingling. I understand the majority of suites are non-conforming and allowed to operate provided they don't cause the city/neighbors issues, however, were I to purchase this property, would I run into problems pulling a building permit to work on the roof, since it would be subject to building inspections etc. and the suites are not up to code? I am currently told the city is aware of the suites in this particular property and have allowed them thus far. I am located in BC, Canada, I understand regulations will be somewhat localized. Thanks.
John Warren
Real Estate Agent from Riverside, IL
replied about 1 month ago
@Kieran A Kilgour I put a lot of value on buying a purpose built building that doesn't have these types of issues involved. I just don't think this is a useful thing to have to deal with. You would be much better off focusing on a building that doesn't have these issues.
Ray Slack
Investor from Bowie, Maryland
replied about 1 month ago
I would agree unless you are getting an AMAZING deal on this.. I would not take it on..
The way I usually handle something like this is to figure out the value of the building in it's Legal conforming use.. (Probably as a single family) and then add in the cost to bring it back to that use. Changing walls and doors and removing extra kitchens, ect.. If I'm still okay with purchasing the property based on that price then I'd move forward but it rarely works out that way.
Assume you are going to get caught and have to bring it up to code in the price you are paying.
Ray
Updated about 1 month ago
Something else to add. If you ever have a large insurance claim. (House burns down and hurts or kills someone) the insurance company will look for a way not to pay the claim.. They see the property is operating illegally and that you were aware of this and didn't tell them. They will deny the claim. They will have no problem selling you the policy. It's just if you have a claim they will do everything they can not to pay it. If you tell them it's an illegal 4plex they will most likely not write a policy for you on it.