Can I Sell a Property With Code Violations?

Selling a house with code violations can be a challenging process if you do not address the issues cited by the city or state.

Code violations refer to any violations of local building codes or regulations on the property. These violations range from minor issues such as broken windows or peeling paint to serious problems like structural damage or illegal additions.

Below, we will explore whether selling a house with code violations is possible and the steps involved. Learn how to sell your distressed house in Michigan or Indiana.

What Are Code Violations?

Code violations are any infractions of the local building codes or regulations that govern the construction and maintenance of properties. These codes ensure the safety and well-being of occupants and the surrounding community.

Common code violations in homes include

Improper Electrical Wiring: This can include things like ungrounded outlets, exposed wiring, or overcrowded electrical boxes. Amateur or 'DIY' electrical work often leads to code violations that can pose a serious safety risk, including electrical fires.
Projects Without Permits: Many homeowners start home improvement projects like adding a deck, finishing a basement, or installing a new bathroom without first obtaining the necessary permits. Even if the work is up to code, the lack of a permit may violate local laws and could be an issue when selling the home.
Improper or Missing Handrails: Handrails must be installed at a certain height and must be able to support a specific amount of weight. Both missing and improperly installed handrails can be a violation. This is a common issue on stairs, ramps, and decks.
Smoke and Carbon Monoxide Detectors: Failing to have functioning smoke detectors or carbon monoxide detectors is another common violation. In many areas, you are required to have these safety devices in specific areas such as outside of sleeping areas and on each level of your home.
Improper Bathroom Ventilation: Many older homes vent bathroom exhaust fans into attics or crawl spaces, but this can lead to moisture build-up that could cause wood rot or mold. Many building codes now require that bathroom fans vent to the outdoors.

When attempting to sell a house with code violations, it is important to understand the impact these violations can have on the sale. Code violations can significantly affect the value of a property. Potential buyers may hesitate to purchase a home with code violations as they perceive it as a financial burden and potential safety hazard.

Selling a House with Code Violations

If you plan to sell a distressed property with code violations, take the following steps below:

Assess the Code Violations

Assessing the extent of the violations before selling a house with code violations is crucial. Hiring a professional inspector knowledgeable about building codes can help identify and document the violations. This inspection will provide a clear understanding of the severity of the violations and what steps need to be taken to rectify them.

Address the Issues

Once the code violations have been identified, addressing them before selling the property is necessary. Hiring contractors or professionals who specialize in the specific areas of code violations is advisable. They can fix the violations and bring the property up to code. It is also essential to obtain any necessary permits and approvals from the relevant authorities to ensure compliance with building regulations.

Disclose the Violations to Potential Home Buyers

When selling a house with code violations, you must fulfill your legal obligations and disclose these violations to potential buyers. Failure to do so can lead to legal issues in the future. Disclosing code violations upfront allows potential buyers to make informed decisions and negotiate accordingly. Code violations may impact the negotiations and sale price of the property.

What Is the Best Way to Sell a Property With Code Violations?

Traditional Home Sale

A traditional home sale is one option for selling a property with code violations. It involves listing the property with a real estate agent who will handle the marketing, showings, negotiations, and paperwork. A real estate agent can help navigate the challenges of selling a house with code violations and attract potential buyers willing to address the violations.

For Sale by Owner (FSBO)

Another option is to sell the property directly as a "For Sale by Owner" (FSBO). You handle all aspects of the sale without the assistance of a real estate agent. Selling FSBO can save you money on agent commissions, but it requires a good understanding of the local real estate market and the ability to market the property effectively.

Cash Home Sale

If you need to sell your property quickly and without the hassle of addressing code violations, a cash home sale may be the best option. Cash home buyers specialize in purchasing distressed properties in as-is condition. They can provide a quick and hassle-free sale, allowing you to move on from the property without the burden of code violations.

We Buy Houses in Michigan and Indiana

If you need to sell your house fast but don’t want the hassle of a traditional home sale, contact M&G Property Brothers. We buy houses as-is. No repairs are needed. Avoid closing costs and realtor commissions. Close in as little as seven days. Call (574) 207-6573 to get a fast cash offer from our local home buyers.