1. How Can Buyers Confirm a Building'S Lawful Use?
A listing may advertise three apartments, even when approved records show only two. Before counting on rental income, compare the advertised layout with approved occupancy records. A finished basement or separate entrance does not establish a lawful dwelling.
Compare the Certificate of Occupancy with Actual Use
The Department of Buildings (DOB) issues Certificates of Occupancy (COs) identifying approved use and occupancy. Search DOB NOW and the Building Information System (BIS), then compare the recorded uses with an on-site inspection.
| Record | What to Compare |
|---|---|
| CO or temporary CO | Approved use, units, and occupancy conditions |
| Approved plans and permits | Alterations and required sign-offs |
| Actual building layout | Occupied units and converted spaces |
A temporary CO expires and does not replace final approval. Raise discrepancies during real estate transaction review, and specify any required correction in the contract.
Investigate Older Buildings without a Co
Buildings erected before 1938 may lack a CO if subsequent alterations did not change use, egress, or occupancy. If legal-use requirements are met, DOB may issue a Letter of No Objection after reviewing the building's records.
- Review historic DOB records and later alteration filings.
- Check whether exits, occupancy, or use changed over time.
- Ask whether a Letter of No Objection or new approval is needed.
The absence of a CO does not automatically make an older building illegal. It also does not prove that every present-day apartment is authorized.
2. Which Ownership and Sale Records Need Review?
A recorded deed may identify an owner without resolving every title question. ACRIS shows recorded documents, but a title examination must address outstanding interests and exceptions. Read the seller's disclosures alongside inspection findings and the purchase agreement.
Check Deeds, Mortgages, and Title Exceptions
ACRIS provides recorded documents dating from 1966 for Manhattan properties. Search by address or borough-block-lot and compare deeds with the seller's identity; older instruments may require separate research.
- Verify deeds, ownership transfers, and recorded mortgages.
- Examine recorded easements and other potential restrictions.
- Request a professional title search and review exceptions.
An ACRIS lookup is not a complete title examination. Review exceptions, recorded liens, and deed recording requirements before closing.
Read the Disclosure and Purchase Agreement Together
Under Real Property Law (RPL) § 462, sellers of covered one- to four-family homes generally must deliver a signed Property Condition Disclosure Statement before the buyer signs a binding contract. Condominiums and co-ops are excluded, and § 463 provides further exemptions.
| Document | Legal Question |
|---|---|
| Condition disclosure | What known conditions did the seller report? |
| Inspection report | What requires independent investigation? |
| Purchase agreement | Who addresses defects and title issues before closing? |
The disclosure is neither a warranty nor a substitute for inspections. Set out inspection access, repairs, title remedies, and any termination rights in the contract before signing.
3. What Restrictions Can Affect Plans after Purchase?
Ownership does not establish a right to create more apartments or alter a facade. Zoning applies to the individual lot; landmark restrictions depend on designation. Identify the proposed work and required approvals before committing to renovation plans.
Verify Zoning and Landmark Designation
The Department of City Planning's ZoLa map identifies zoning information by parcel. The Landmarks Preservation Commission (LPC) generally requires permits for exterior changes to designated landmarks and buildings in historic districts.
- Check the parcel's zoning classification and proposed use.
- Confirm whether landmark or historic-district rules apply.
- Compare renovation plans with DOB and LPC permit requirements.
Zoning compliance does not replace an LPC permit when one is required. Check land use and zoning rules before setting a renovation budget.
Resolve Open Permits and Compliance Questions
Open building applications, unresolved violations, or unapproved alterations can complicate the closing and later occupancy. Buyers should identify whether a problem can be corrected and who will bear that obligation.
- Check DOB permit status and outstanding violations.
- Request evidence of completed inspections and sign-offs.
- Address correction duties and closing conditions in writing.
LPC accepts permit applications through Portico. DOB handles building permits and violations; disputes over a purchase contract may instead require review in an appropriate civil court.
4. Frequently Asked Questions
Can a buyer rely on an advertised rental income figure?
Not without checking it. Compare rent rolls and leases with payment records and lawful occupancy. An advertised unit may lack approval as a dwelling.
Does an "as-is" purchase eliminate all seller disclosure duties?
No. An as-is clause does not eliminate disclosure duties for covered sales or automatically defeat claims involving knowing misrepresentations. The statutory exclusions and agreement still matter.
Can a tenant remain after the property is sold?
Often, yes. A sale alone does not necessarily terminate an existing tenancy. Review leases, rent regulation, and applicable occupancy protections.
Do federal housing rules replace local building approvals?
No. Federal fair housing requirements may apply to discrimination or accessibility, while building use and renovation permits generally follow city and state rules.
5. Discuss Property Due Diligence with Sjkp Attorneys
If a listing, occupancy record, and seller disclosure tell different stories, identify the discrepancy before signing. The timing matters because an executed contract may narrow the buyer's options.
SJKP's attorneys can review purchase terms, title exceptions, occupancy records, and proposed alterations. Contact SJKP to discuss the documents and legal questions affecting the proposed transaction.
20 Oct, 2026
