The allure of a penthouse or for that matter any apartment with a setback terrace is irresistible. A precious and highly coveted commodity, terrace ownership connotes a certain quality of life with bragging rights. To the urban dweller, outdoor space offers oases of air, light, sky and ultimately status. Outdoor space sells at a premium in New York City, and for the purchaser, caveat emptor reigns supreme. It’s critical for a buyer to understand the governing Proprietary Lease and House Rules which will vary from building to building and also to consult with an attorney regarding local ordinances and building codes as they relate to what can and cannot be done, placed or built on a terrace.