A home is listed as a “legal non confirming triplex” with supporting documentation. The owner decided to add a 4th unit in the home to increase the rental income and adds the rental income into the pro forma.
1. Has the home now lost its status as legal non confirming since it has changed the use?
2. Do you value rental income from an illegal unit the same as a legal unit when making an offer, knowing that the City can shut it down at any time?
- It will still qualify as legal non-conforming for three units.
- The income from the illegal fourth unit should be ignored.
Brian Madigan LL.B., Broker