Syllabus / Permits 101

Case study on illegal apartment layouts



Picture this: you've saved up for the renovations that'll finally make your new home perfect. But as you're about to take a sledgehammer to some sheetrock, a host of previously-existing repairs and renovations that were done before you moved in come to light, and guess what: you're responsible for all the fines that come with the illegal work.

That's what happened to a couple in Brooklyn who after spending $1.38 million on a three-bedroom co-op in a pre-war limestone walk-up last summer, decided to upgrade the guest bathroom and add a shower to the master bedroom's half bath.

The couple anticipated it would be a relatively simple renovation, but when they went to file permits with the Department of Buildings, their troubles began. Previous renovations by past owners were done illegally, unbeknownst to the new owners. The prior work raised red flags for the DOB, resulting in a string of rejected permits and even a fine for the new owner.

Applying for the permits, which should have taken several weeks, drew out over several months.


How does this happen?

With the real estate market in New York the way it is, owners often don’t have the opportunity to look into an apartment’s full renovation history.

After getting the OK from their board to do renovations, the couple hired an experienced architect and contractor through Bolster for the roughly $300,000 renovation. The team also included a seasoned expeditor to help move along the permitting process through the DOB (and without whom, the process would have likely taken even longer).

When a permit application is submitted to the DOB, its plan examiners review the paperwork to ensure the project conforms to construction codes and the city's zoning resolutions. If there are red flags, the owner must make revisions and resubmit the plans. Once a permit is granted, construction begins. When the work is completed, an inspector visits the site to sign off on the project.

The owner was determined to follow this process to the letter, but was frustrated that the examiner kept unearthing new issues on each visit.

The system, it turned out, was very difficult to navigate and, unfortunately, a new owner can find themselves on the hook for illegal work that was done previously.


How this was solved

The initial permits, filed in mid-October, were denied because there wasn’t enough clearance over the washer and dryer in the master bath, the examiner said.

So the team fixed that. But during the next round, the DOB examiner then noticed the bathroom had a different flaw: its window led to a fire escape — which is a no-no for a point of egress, it turned out, and there were no permits on file to legalize that.

The half-bath was added to all of the units when the building was converted from a rental to a co-op in 1983, the owner explained. To hunt for possible past permits, the team tried calling the plumber who did the work, but he had passed away more than a decade ago. The architect of that project was also nowhere to be found.

Ultimately, they had to redesign the bathrooms so the fire escape wasn't in it and then returned to the DOB with new drawings.

This time, the plan examiner noticed something unrelated to the bathroom was problematic: the entire layout, with the current configuration of bedrooms, was different from the layout the DOB had on record. Because of that, the examiner again rejected the bathroom application and fined the owner $5,000 to legalize the layout.


How to prevent this from happening to you

Before you buy, look at previous permits filed for your apartment.

The layers of an apartment’s history can sometimes be hidden, even to professionals, and can be especially complicated in pre-war buildings that were renovated decades ago when they turned into co-ops, experts said.

When purchasing old apartments in co-ops, be sure to ask when the apartment was last renovated and find out whether it was granted a permit–If work was done after 1993, the DOB’s website should list previously filed permits. If the work was done before then, ask the co-op board to provide you with hard copies of drawings and permits. If they don’t have the permits, you can order the original microfiche from the DOB.

You should also consider having your lawyer look into previous alterations and require an affidavit from the seller with recourse.

Usually when you buy a new property the contract has a statement asking the seller to certify that they have only conducted legal renovations to the best of their knowledge. Attorneys are very picky when someone doesn't make that statement and will raise a huge red flag.


Consider having an architect inspect your property

It may be worth paying for a few hours of an architect’s time to do a site visit to check if blatantly illegal conditions exist before beginning the renovation. Also have the architect, or a code consultant, review the permit history to see if a deeper dig might be merited.

While it can be difficult to ascertain whether a property has illegal work, reviewing as much as possible should be part of the process before the design is in place. The price to pay an architect for a few hours (~$1,000) is nothing compared to the problems and costs you may encounter legalizing an apartment during a renovation.


Talk to the DOB directly

The DOB makes staff available every Tuesday to answer homeowners questions.

Every Tuesday, from 4:30 to 7 p.m., the Buildings Department holds a "Homeowners' Night" in each of its borough offices where staffers are on hand to answer questions about home construction projects.



This post is intended for informational purposes only and is general in nature as it does not take into account your personal renovation situation. You should really consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a licensed architect, general contractor or financial / legal adviser.