deed question

[coastal71]

What is the name of your state (only U.S. law)? Ohio

I have a question concerning a deed. I did a search on a property that I know is has 3 units and it only lists two - the attic was converted into a apt yrs ago. Does that change the owners taxes at all if they are not reporting that other unit?

 

[justalayman]

It sounds like the attic may be an illegal apartment. If you are considering buying, you should make sure all work was permitted and is properly documented. If not, you may get stuck with a very expensive corrective procedure or lose that 3rd unit altogether.

and typically a 3 unit building will be worth more than a 2 unit building so most likely, the taxes are not being paid as they should.

 

[nextwife]

It sounds like the attic may be an illegal apartment. If you are considering buying, you should make sure all work was permitted and is properly documented. If not, you may get stuck with a very expensive corrective procedure or lose that 3rd unit altogether.

and typically a 3 unit building will be worth more than a 2 unit building so most likely, the taxes are not being paid as they should.

Not necessarilly worth more. Location would dictate. In some areas, we convert some REO twos back into ones before selling, because it is worth more, in that market, as a large single. Same may be true here, it really depends on what sort of rental environment may be there.

 

[justalayman]

Not necessarilly worth more. Location would dictate. In some areas, we convert some REO twos back into ones before selling, because it is worth more, in that market, as a large single. Same may be true here, it really depends on what sort of rental environment may be there.

true but when the taxing authorities are determining value, a 3 unit is typically worth more than a 2 unit. Of course the owner could argue that with an appraisal but until they do, due to the increased income potential, it is generally considered to be worth more, at least from what I have seen.

but still, if it is registered as a 2 unit, it most likely has an illegal 3rd unit and that could cause all sorts of problems for a a buyer.