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The subject is a single detached home with a self-contained suite in the basement. Zoning allows one basement suite. However, the suite is unauthorized and would likely require some work to comply with code.
"Many people use the terms unlawful and illegal interchangeably, but they have different meanings. Illegal refers to something that breaks the law, like stealing or speeding. It’s a clear violation of written laws. On the other hand, unlawful means something is not authorized by law, but it might not be specifically mentioned in laws. For example, not following certain rules in a contract can be unlawful. While both terms imply something is wrong according to the law, illegal actions are direct violations of specific laws, whereas unlawful ones are broader and not always about breaking a specific law."
Seems to me the current suite hasn't been authorized under the zoning regulations.