If I buy a three-family house and discover it’s only legally approved for two units, what happens to
Darice Veiga's Answer
Quick Answer
In Massachusetts, buyers of properties misrepresented as legal multi-families may face occupation and rental restrictions on unapproved units, but could have claims against sellers if misrepresentation occurred.
Key risks of waiting too long
Potential Risk
Inability to occupy or rent the unapproved unit.
Potential Risk
Need for permits or zoning relief to legalize the third unit.
Potential Risk
Potential legal claims against the seller for misrepresentation.
Potential Risk
Financial losses from increased legal costs or inability to use property.
Full Transcript
Below is an AI-generated transcript of the video answer.
In Massachusetts, if you purchase a property represented as a legal three family and later discover it is only legally approved as a two family, you may be unable to lawfully occupy or rent the third unit and may need permits, zoning relief, or other municipal approval to legalize it.
If the property was materially misrepresented as a lawful three family, you may also have a claim against the seller or another party responsible for the representation, depending on what was represented, what they knew or reasonably should have known, and your purchase documents.
This may not apply if the property's legal use was properly disclosed before closing or the third unit can be lawfully approved.