Sellers face conversion of illegal unit

DEAR BERNICE: We purchased our home a number of years ago. The previous owner converted the garage to mother-in-law quarters without a permit. It has a stove, refrigerator and a separate bath. Our agent is telling us that we have to convert it back to a garage. Is this really necessary? --Wanda B.

DEAR WANDA: This is a very difficult situation. The answer to your question is "maybe." Please investigate the following issues:

1. Check the permits on the property. It's important to know whether a permit exists for the garage addition. For example, if there is a stove or plumbing, were the proper electrical and gas permits pulled for those installations? When we had a water heater that went out, the company that installed it pulled the permit for us. We didn't have to do anything.

2. Depending on your location, not having a permit can mean big trouble. Some places have no building code, no permits and no inspections. You are free to do whatever you choose. On the other hand, if you live where they enforce building codes, not conforming to the requirements can have serious consequences.

To illustrate, I've seen building inspectors in Los Angeles force owners to convert their beautiful garage conversions back into garages. The primary reason is that the code requires a certain number of covered parking spaces. If the property violates the code, the city has the power to force the owner to convert the property back so it does conform to code.

The owner could apply for a variance, but those can be difficult and costly to obtain. In fact, the worst case I ever heard of was a woman who expanded a 1,200-square-foot house to more than 4,000 square feet without a permit. The city required her to demolish all the work she had completed.

3. Check the zoning. If you are zoned for single-family residential on your lot and your garage conversion has a kitchen and bath, this may be considered a second unit. If you're not zoned for two units on the property then the city can demand that you return the property to a single-family residence.

4. Was a permit required at the time the property was improved? If the building laws changed after your conversion was made, you may be grandfathered in based upon the old code requirements. The challenge is what happens if there is damage to the structure. In one case, there was a duplex on a lot that was too small to have the required parking. When the property was damaged in an earthquake, the city would not allow the owners to rebuild the duplex -- all it would permit was a single-family residence.

5. Was the work done to code, even though a permit was not obtained? Sometimes non-permitted additions are done to code and can be eligible for a permit. If the changes don't meet code, there is a much higher probability that the city will require you to change it back.

6. Disclose, disclose, disclose. Regardless of your decision, you must disclose the facts in writing to your buyer. Converting the current in-law quarters back to a garage may lower your property value or make it harder to obtain a price sufficiently high enough on the appraisal to close the transaction. ...CONTINUED

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