An “unwarranted” in-law unit is one that hasn’t been done with city permits. That means city inspectors didn’t verify that unit construction was done in accordance with city safety codes.
When city inspectors approve electrical, plumbing and general renovations, the city records those sign-offs on the property’s building permit history. The “3R” is one of the key mandatory reports sellers provide to future buyers in a sale, and it lists all general permits that past owners applied for, let expire, or completed. If you see a 3R for a single-family dwelling that has an unwarranted unit, you can be sure that the unit wasn’t done with permits—or the 3R would classify the property as a two-unit dwelling. Continue Reading