"Unofficial" Two Family home

In the late 1960s my in-laws obtained approval from their town in NY to modify their single family home to a two family home. The work was immediately completed but the town records and tax amounts were never updated to indicate a two family dwelling. Since no one other than family occupied the residence during the past 40 years, can the town attempt to obtain back taxes?

[HomeGuru]

[quote]Originally posted by robsas
[b]In the late 1960s my in-laws obtained approval from their town in NY to modify their single family home to a two family home. The work was immediately completed but the town records and tax amounts were never updated to indicate a two family dwelling. Since no one other than family occupied the residence during the past 40 years, can the town attempt to obtain back taxes?


**A: yes.

Sorry for seeking clarification but would they be responsible for back taxes even though it functioned as a single family dwelling for the past 40 years? Would back taxes start at the conversion in 1968? Why?

[HomeGuru]

[quote]Originally posted by robsas
[b]Sorry for seeking clarification but would they be responsible for back taxes even though it functioned as a single family dwelling for the past 40 years?

**A: no, only at the time of the 2 family modification.
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Would back taxes start at the conversion in 1968?
**A: yes.
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Why?

**A: ask the real property tax assessment office.

So this doesn't sound too good. Other than possibly having to pay off 35 years of back taxes what recourse do they have? As senior citizens, they're on a fixed budget with a reverse mortgage dipping into their equity. This bill will leave them with nothing...

[HomeGuru]

[quote]Originally posted by robsas
[b]So this doesn't sound too good. Other than possibly having to pay off 35 years of back taxes what recourse do they have? As senior citizens, they're on a fixed budget with a reverse mortgage dipping into their equity. This bill will leave them with nothing...

**A: what is the amount of the back taxes? They can file an appeal.

They haven't actually been served yet. I'm anticipating a problem however as they are now trying to sell their home. They got approval in 1968 to convert, completed the work imediately, got a CO and have had family living in the house since. Unfortunately the tax roll states it's still a single family. I'm afraid the town will try to collect if I push about it being a two family. Should I let it go as a single and eliminate the potential tax problem or try to persuade the town it's a two family and deal with the tax fallout if any?

[HomeGuru]

[quote]Originally posted by robsas
[b]They haven't actually been served yet. I'm anticipating a problem however as they are now trying to sell their home. They got approval in 1968 to convert, completed the work imediately, got a CO and have had family living in the house since. Unfortunately the tax roll states it's still a single family. I'm afraid the town will try to collect if I push about it being a two family. Should I let it go as a single and eliminate the potential tax problem or try to persuade the town it's a two family and deal with the tax fallout if any?

**A: my suggestion is to deal with the issue now and get it resolved, because your family has exposure if closing were to occur and then later the Buyer sues when they get assessed the old tax out of the blue.

I appreciate your comments and quick reply but just one more question... if I (son-in-law) were to buy it (no mtg) with the intention of renting it as a two family, would you still suggest we address the issue now? Thanks, no more questions ;-)

[HomeGuru]

Yes.