Expert: Jay Denit - 3/19/2008

Question
Hello Jay.

I currently own a duplex building in north-west Denver (Highlands area). I live in side "A" and i rent out side "B" next door. Both sides are almost the same square footage (1000 sq ft each), but with a different room/kitchen/bath/bedroom layout. The basement is only accessible from side "A" and it is only a half-basement, meaning: there is a half-basement under side "A", and half-basement under side "B". The rest is crawl space. All utilities, gas, water and electric come into side "A" and then tee off to side "B". My (first) question is: do i have to separate all of these utilities in order to sell one side or all of the duplex? Do i need to have a new gas, water, waste line and electric service run into side "B" in order to sell it? Or, can a party/common wall agreement be made (by a lawyer) for the potential buyer/s to agree to "sharing" utilities?

I am looking into getting a new gas service and electrical service installed into side "B", the main problem is the extreme cost of getting a new water and waste line for side "B". Can this be left intact and sold in an "as is" condition? Is there a law in Denver against doing this?

Many thanks for all of your help.

Lee
Denver, CO

Answer
Hi Lee,

Thanks for the question.  First,  you need to see how your legal description reads.  Since it is a duplex, I'm sure that both units are listed in the same legal description.  In order to be able to sell one of the units you will need to have one unit legally subdivided, so the legal descriptions show two separate units.  

Doing this is a pretty big pain in the tail.  I would make sure that's possible before you start spending too much money in hopes of being able to sell one unit.

Hope that helps!