What problems I may or may not be facing with the purchase a single family home? 3 Answers as of January 24, 2013

I just made an offer on a short sale single family home in California. The current owner has the home divided into 3 units and all are rented out. The home has two illegal kitchens. I would like to live in the home with my family. One of the tenants that occupy the upper main living area has been described as a trouble to deal with, which we have encountered with her being uncooperative with showing the property. The selling agent has already said that he resumes no responsibility in regards to the tenants.

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Law Offices of Mark West
Law Offices of Mark West | Mark West
I believe you could be opening up a can of worms buying into a house that has illegal kitchens, etc. It sounds as if the entire set up is against regulations. You could be forced to redo the property; i.e. rip out the "apartment" divisions and the illegal kitchens and remodel. That would be quite an expense and probably why the owner wants out now.
Answer Applies to: California
Replied: 1/24/2013
Law Office of Peter Holzer | Peter Holzer
You have a lot of legal issues. You'll need to take care of the illegal kitchens, or the government will go after you. That'll cost you some $$$. You can read into agent's comments about the tenants that the tenants aren't paying their rent, and you'll have to evict them. That'll cost you even more $$$. This property looks like a money pit. Proceed carefully.
Answer Applies to: California
Replied: 1/24/2013
Law Offices of John F. Nicholson
Law Offices of John F. Nicholson | John F. Nicholson
You could be buying an instant lawsuit under the present circumstances. It appears that the single family dwelling was illegally converted into multiple living space. In cities that have rent control the now "multiple units" require that you pay relocation expenses to all of the tenants if you want to move into the property. The relocation fee for 3 tenants, without any disabilities in Los Angeles is in excess of $7,000 each. The short sale benefits the current owner. Insist that the current owner evict the tenants and pay the relocation expenses before the transaction is complete. Problem is, the seller may not have the funds, then you should try to negotiate a lower price with the bank if you have to bear the expense of the evictions.
Answer Applies to: California
Replied: 1/24/2013
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