Philadelphia Zoning Question (RM-1)

[Kyle McCann]

Hey Everyone!

Long time reader and first time poster here!

I am currently under contract for my first home! It is a duplex in Philadelphia. The property is zoned RM-1, and the property meets all of the duplex requirements within the Philadelphia zoning quick guide. The only snag that we have run into during closing, is that the most recent Use Permit for the property notes that the property is being used as a single family.

We are financing the property using a FHA loan, and in the commitment letter they noted "The subject is being used as a 2 unit multi-family property. Appraiser could not verify if there was a permit to use this way or if one is required. Appraiser was unable to locate any permits online or in the normal course of business that could verify permitted use. ** Will need to verify with City Of Philadelphia that subject property is legally permissible to be used a as 2 unit multi-family home in order to proceed **"

It appears that they are requiring the use-permit to be updated to two-family prior to close? Or should the RM-1 zoning suffice that the property is legally permissible to be used as a duplex? 

We have approached the sellers to hopefully have them file the use permit (Their realtor has been tough to communicate with - delayed responses and vague - and it appears that the sellers don't want to have to file any paperwork), so that it can be updated and we can close, but not sure if anyone else has run into this issue. I have an appointment this week with the L&I office to discuss this issue, to see if they can issue me a letter or anything that notes that the property can legally be used as a two-family.

I would greatly appreciate any input that any of you may have!

Thanks!

Kyle

[Alan Asriants]

Don't buy the property without proof of it being a legal Duplex, regardless of it's zoning. 

There are plenty of illegal multi families in Phila even with RM-1 zoning. 

Converting it might not be an issue but will sure be a process.

If your property is marketed as a Duplex, make sure the seller provides an L&I cert showing the use of the property as a two unit property. It should look like the attached pic

Your Realtor should know this.

I don't advise getting creative and try to buy a single family as a duplex unless its a steal. 

the value of a duplex and single are different. Get verification from the city that is legal. Otherwise I would terminate (this is all dependent if the property is marketed as a duplex)