As a buyer or seller in the competitive New York City real estate market, you are likely no stranger to the concept of property conversions. Whether it’s a single-family home divided into multiple units or a commercial space repurposed as a residential property, conversions can be a lucrative way to increase a property’s value. However, when these conversions are done illegally, without the proper permits and inspections, the consequences can be severe.
Sellers: Be aware of the risks
If you are a seller looking to sell a home that may have had conversion work done without a permit, you must be aware of the potential risks involved. In New York City, the Department of Buildings (DOB) takes illegal conversions very seriously, and if you are caught, you could face fines, penalties and even criminal charges.
Moreover, if the conversion is unsafe, the DOB needs you to undo the work, which can be costly and time-consuming. This can not only impact your ability to sell the property but also lead to legal and financial liabilities.
Buyers: do your due diligence
On the other hand, if you are a buyer looking to purchase a home but discover that there may have been an illegal conversion, you need to exercise extreme caution. Not only could you be inheriting a property with potential safety hazards, but you may also be on the hook for any fines or penalties associated with the illegal conversion. Additionally, you may need to invest significant time and money to bring the property up to code, which can be a daunting task.
What to do
So, what can you do to protect yourself from the consequences of illegal conversions in NYC? For sellers, it is essential to ensure that any conversion work is done with the proper permits and inspections. For buyers, it is crucial to do your due diligence, researching the property’s history and conducting thorough inspections before making an offer. Additionally, working with a reputable real estate attorney can help you avoid potential pitfalls and ensure a smooth transaction.
Illegal conversions in NYC can have serious consequences for both buyers and sellers. Remember, it’s always better to be safe than sorry, and seeking legal help can be a wise investment in the long run.