Zoning Compliance
I see a lot of 3-4 unit properties in areas zoned R or R2. Aren't these in violation of zoning ordinances? A lot of these have very good rental income. If they are in violation, why do such properties exist for long periods of time? How do the current owner/landlords get away with it? Is it that I am doing this all wrong and should be looking into these as possible investments? 
While this depends heavily on your local zoning laws, rental units built before the zoning code was enacted are genrally "grandfathered" in. They are considered legal non-confroming use and can remain that way.
In Chicago you will sometimes see a brick six flat in the middle of a block zoned for only one or two family homes. This is okay because it was there before the zoning ordinance was originally enacted.
Buying and renting out these properties is generally no different than with any other buildings. Just look out for ones with extra apartments added more recently in basements. Those are usaully a no-no and the city could make you take them out.
The data sheets that RE Agents send me don't mention if the properties are legal, non-conforming - at least not in my state.
Is there a quick way to find out if a property has indeed been "grandfathered"?
As to the Agents not mentining the non-conformance thing, that's probably an illegal act both under their state RE agency's rules and as per their MLS rules.
I doubt if their broker would be very happy with such an omission as it could net him/her a lawsuit for fraudulent concealment.
Quote:
On 2003-09-30 11:43, JohnMerchant wrote:
As to the Agents not mentining the non-conformance thing, that's probably an illegal act both under their state RE agency's rules and as per their MLS rules.
Now, are agents required to disclose this only when the property is "illegal"?
I know it's not really safe to assume anything, but for the sake of narrowing down properties, would it be fair to assume that in the absence of such disclosure in the MLS sheets, that the property is indeed legal? If so, I have a lot to un-cross out of my list of potential properties.
[ Edited by reklats on Date 03/27/2007 ]