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Store/Office Certificate of Occupancy

7:52 PM 01/08/2013

 

We are purchasing a townhouse with a restaurant on the ground floor.  The building has a CofO with a store/office classification at the commercial floor and the space is currently being used as a restaurant.  Should I be concerned about this?  Also, the rental apartment is listed as a "Dental Office."  The C of O our attorney found is not on the DOB BIS system, so I'm not sure if it's current or if DOB even knows it exists.  We're far into the purchase process so any advice would be much appreciated. 

 

 

6 answers
  • vote

    Yes, if there is a problem in the future, you will be on the hook for it.

    8:43 PM 01/08/2013 | 0 Votes

     

     

  • vote

    While I believe that this is not an unusual situation for many properties in NYC, I agree with the post above. If you wanted to do any renovations that would require you to file with the DOB, you may have to deal with updating the C of O.
    From a financing point of view, I would think that a bank would not like this either.  Just my opinion though.

    8:57 PM 01/08/2013 | 0 Votes

     

     

  • vote

    I think my first question is how do you wish to use the space?  As a 2 family + restaurant, for example?  Or as a two family alone?  That will dictate whether the C of O is a  problem, and will also dictate what kind of financing you will pursue.
    And, where did your attorney "find" the C of O if it's not on file with the DOB?

    9:59 PM 01/08/2013 | 0 Votes

     

     

    Comments (2)

    • We want to keep it as is - 2 family plus restaurant. I think our attorney got it from a title company.

      10:44 PM 01/08/2013

          
    • We're pursuing a 203K loan.

      10:45 PM 01/08/2013

          
  • vote

    If you're getting a 203k loan, i'd try to be reasonably sure.  I'm not an expert, but if I were very interested in the property, I'd go to the DOB at 210 Joralemon downtown and verify physically, that way you will know for sure before contacting your bank.  Online records not always reliable.  

    11:07 PM 01/08/2013 | -1 Votes

     

     

  • vote

    I've been doing some random searches for C of O's on buildings that have a restaurant on the ground floor.  Most appear to have a "store" noted for the restaurant floor.  It seems like this is common.  Has anyone seen a C of O that has clearly stated "restaurant"?

    7:51 AM 01/09/2013 | 0 Votes

     

     

  • vote

    In Brooklyn there are a lot of small mixed use buildings without C of O's or with pending C of O applications but I have seen a few C of O's for restaurants. The description I've seen is "Eat/Drink Establishment".

    The DoB's online files can be a mess. I've found a lot of C of O's scanned into the wrong address. so the trip downtown sounds wise.

    The thing that would worry me most about this one would be the residential unit with the office classification. If a savvy and unsavory tenant got into the place and you tried to evict them, you'd have trouble because of the commercial designation.

    Does the restaurant have a current DoH inspection and range hood exhaust inspection? Is there record of filing for the initial installation of the range hood exhaust?

    12:44 PM 01/09/2013 | 0 Votes

     

     

    Comments (3)

    • I don't know how to determine if they've had a range hood exhaust inspection, but they have an A grade in their window, so DoH has performed inspections. I see no record of filing for the initial installation. It's my assumption that this has been a restaurant for some time. There was a filing at one point to change classifications to a Eat/Drink Establishment but it was never signed off.

      1:36 PM 01/09/2013

          
    • Good signs that it has a grade and has been a restaurant for some time. There will be a sticker with an expiration date on the hood. The application for install may show up in the DoB under plumbing.

      3:52 PM 01/09/2013

          
    • Thanks for the advice - The BIS DOB site shows there were two inspections in 2011.

      4:03 PM 01/09/2013

          

Answer