Duplex converted to SFR assistance

[J Grant]

I don't disagree with the above, re Fannie guidelines, it more or less paraphrases what I wrote, the extent and limitaiton of an appraiser's responsiblities as to home inspection/visible vs non visble conditions, information such as lack of permits etc. The area we differ in it appears is lack of permits, from what I can understand, you seem to be saying that any and every time there is a lack of a permit to make a report subject to obtaining the permit and inspection (unless I misunderstood).

I seriously think that lenders need to get more involved in the home inspection and env inspection and code issues and their lack of doing so does not mean we should step in and take on that role. That is their responsiblity and if they are too cheap or cavalier to take a proactive role and call for inspections on every house they underwrite, I don't see where that is the appraiser's burden to do so.

 

[Mr Rex]

Quote from OP

Owner has since converted to single family residence by removal of the lower level kitchen, and removing any separation between the units. Foyer is now open to the upper and lower level. There is a single heating source (GHW) but there are separate electric meters. No permit was ever pulled for change, and according to the assessment department, the use is still as a duplex.

 

[J Grant]

Rex, neither of us saw the unit or know the area ( at least I don't). So using the information the OP gave, the zoning allows for both duplex and single family. So legal use is a duplex on assesment, but it also legal as it is with one family living in it. The removal of 2nd kitchen and opening of foyer makes it viable now as a single family, allowable under zoning regs. The fact that there are 2 sep elect meters, do area building codes allow for a SFR to retain 2 meters, or insist that one be removed?. I suppose where we differ is that you see the 2 meters as an electrical hazard, but I don't (assuming when I went there panels were in place, not open, no dangling or crossed wires etc). It sounds like an old funky area where most likely a lot of the residences are doing this, converting to dual or single family use as they see fit. I'd have a lot more problem with a two family trying to use one electric meter, that to me could be a potential hazard issue.

Both of us would disclose that no permits were pulled, and use as single family now. Where we differ far as I can tell is now the electric meter issue. Both would disclose the 2 meters as well. If my research showed that 2 meters is market accepted for area I would state that, and not call for removal of one meter or inspection/permit, and you would (I think you would? You are not confirming exactly what you would do)

You certainly would not be wrong to call for removal of the 2nd meter and making the report subject to, and it may be the better response. But I also think that if it is market accepted, typical for area, legally allowed and no visible hazard conditions noted, that making the report as is with disclosures would not be wrong either. (again, not having seen it. If I walked in and the converstion to one family looked shoddy I would think differently)

 

[Mr Rex]

Foyer open to 1st & 2nd floor means structure was removed.

 

[23Degrees]

J - maybe where you are zoning does not refer to a permit requirement and one can build an entire SFR without ever getting a permit and not have violated the zoning code - but not here and not in many areas where the zoning code specifically indicates that all permits and licenses required by all laws and ordinances must be secured. Again - I'll let the lawyers sort it out for anyone who thinks that this is no big deal.

As for not being a building inspector, roof inspector etc. - that is the whole point of using these boxes appropriately. Good luck to the appraiser who "discloses" the unpermitted bootlegged addition, then goes "as is" and "legal" and declares workmanlike manner at client request - that is the guy who just played building inspector - completely irresponsible IMO but the lenders love him and his E and O.

 

[Mike Kennedy]

Hello,

Looking for some assistance, have done most of the leg work ( I think!).

The subject property is a bilevel style detached residence, constructed in 1970's. Improvements were originally constructed as an up/down style duplex. Owner has since converted to single family residence by removal of the lower level kitchen, and removing any separation between the units. Foyer is now open to the upper and lower level. There is a single heating source (GHW) but there are separate electric meters. No permit was ever pulled for change, and according to the assessment department, the use is still as a duplex.

Now,the overall neighborhood is a mixture of SFR and some 2-4 units. Properties are zoned SR-2 and SR-3 in this neighborhood. The subject property is zoned SR-3, which is legal zoning for both SFR's and 2-4's. Current use under zoning is legal (spoke w/ planning dept to verify).

I also contacted the assessment dept to see what needed to be done to make a conversion from duplex to SFR legal and was told a permit must be pulled, removal of LL kitchen, and no separation between the units.

I have confirmed the HBU of this property is as a single family residence and will be appraising the subject as such. My question is, can I complete the appraisal "as is" w/ zoning being legal and city use as a duplex, or do I need to complete under the HC that property must be changed to SFR w/ city assessment?

(PS) appraisal is for mortgage purposes... (PSS) Im licensed now but cant find how to change it in user CP!

Thanks!

1. which city?
2. recommend confirmation of the municipality's required conversion process from 2FR to 1FR (which typically invalidates the existing 2FR Certificate of Occupancy/Compliance) with the correct department - the Building Department (not planning or assessment).
3. structural changes indicated in OP typically require both a Construction Permit AND a C.O. / C.C which closes out and replaces the CP.
4. also keep in mind that, per your investigation above, it is likely the property taxes currently paid reflect 2FR use. determining and reporting estimated SFR taxes is appropriate as well.
5. Conversion from 2FR to SFR more than likely also impacts the current property insurance policy - i.e. it may invalidate the existing policy in the absence of the proper C. O. / C.C.
6. please Review the Building Department Records and identify exactly what C. O./ C.C. is on file and confirm whether any closed OR open building permits were filed or recorded. In many Municipalities an Open BP (or an Expired one) absent a CO/CC subsequent to construction / substantial remodeling is also Violation of the Building Ordinance ( Local Law).:icon_idea:

Please let us know your findings as, IMO, any opinions expressed absent the necessary, actual facts are well-meaning but will not reliably guide you.

 

[J Grant]

A very informative, well thought out post!