Understanding Code Violations & Unpermitted Work
Before deciding what to do next, it’s important to know what qualifies as a code violation or unpermitted work.
Code Violations: These occur when a home does not meet local building codes or safety regulations. Examples include faulty electrical wiring, unsafe plumbing, structural issues, or illegal room additions.
Unpermitted Work: This refers to renovations, repairs, or additions done without the required city or county permits. Common examples include basement conversions, extra bathrooms, and garage-to-living-space transformations.
Both of these issues can lead to fines, delays, and failed inspections, making it harder to sell your home through traditional methods.
Key Considerations When Selling a Home with Code Violations or Unpermitted Work
1. Do You Need to Disclose Code Violations or Unpermitted Work?
Yes, disclosure is required in most states.
Failure to disclose code violations or unpermitted work can lead to legal action from buyers after the sale.
Many states have seller disclosure forms that require you to list any known issues with the property.
Even if the work was done before you owned the home, you could still be responsible for addressing any violations.
Buyers will find out eventually—either through inspections, appraisals, or municipal records—so being upfront avoids last-minute deal-breakers.
Tip: If you're unsure about your home's status, you can request a permit history report from your local building department.
2. Will It Affect Your Home’s Value?
Yes, code violations and unpermitted work can impact market value.
Buyer hesitation: Many buyers prefer a turn-key home that doesn’t require additional work or legal hurdles.
Lower appraised value: Lenders may devalue a property with outstanding violations, limiting financing options.
Fewer offers: Some buyers will pass on a home with unpermitted work altogether.
Example:
A homeowner converts a garage into a living space without permits. A potential buyer discovers the issue, and their lender refuses to approve financing unless the work is permitted and inspected. The seller either loses the buyer or must retroactively permit and fix the space, costing thousands.
3. Should You Fix the Issues Before Selling?
Not always—fixing code violations can be expensive and time-consuming.
Before committing to repairs, ask yourself:
What will it cost to bring the home up to code? Some issues, like outdated electrical wiring or illegal room additions, can be extremely costly to correct.
How long will the permitting process take? Depending on your location, getting permits and inspections could take months.
Will making the repairs increase your return on investment? Sometimes, the cost of fixing the issue outweighs the potential increase in home value.
Situations where fixing violations may make sense:
If the repairs are minor and cost-effective (e.g., missing smoke detectors, minor plumbing issues).
If the work was unpermitted but up to code, and retroactive permits can be obtained without major changes.
If your home is in a high-demand market where buyers may be willing to pay more for a fully compliant home.
When it’s better to sell as-is:
Major structural changes (e.g., unapproved room additions, foundation issues).
Extensive electrical or plumbing work that doesn’t meet building codes.
Homes with multiple violations that would require thousands in repairs.
Tip: Getting a pre-listing inspection can help you understand the full scope of the problem before deciding on repairs.
4. Can You Sell the Home As-Is?
Yes! Selling a home as-is is a viable option, especially for those who want a fast and hassle-free sale.
Many buyers—especially first-time homebuyers or those using traditional financing—may be hesitant to take on a home with violations.
However, cash buyers and real estate investors often purchase homes as-is, assuming responsibility for any existing issues.
Selling as-is means avoiding repair costs, city inspections, and lengthy permitting processes.
Who Buys Homes with Code Violations?
Cash home buyers (like Midwest Cash Offer) who purchase properties regardless of condition.
House flippers who have the resources to fix and resell.
Investors looking for rental properties they can renovate over time.
Who likely won’t buy?
Traditional buyers using FHA or VA loans—lenders often require homes to meet strict safety and livability standards.
Buyers looking for a turnkey home with no repair issues.
Tip: If you want to sell as-is, be transparent about the home’s condition in your listing and pricing strategy.
5. Will You Face Legal or Financial Penalties?
Possibly—some violations may result in fines, stop-work orders, or even legal action.
Municipal fines: If the city is aware of the violation, they may have already imposed daily or monthly fines. These can accumulate quickly and even turn into liens against the property.
Stop-work orders: If unpermitted work is discovered mid-renovation, the city may issue a stop-work order, requiring permits before work can continue.
Forced remediation: In extreme cases, cities can demand that illegal structures be torn down or corrected, at the homeowner’s expense.
Liability risks: If an unpermitted electrical or plumbing issue causes injury or property damage, homeowners may be held liable.
Example:
A homeowner installs an unpermitted deck. Years later, a guest is injured when the deck collapses. The homeowner is found liable because the structure did not meet building codes.
Tip: Before selling, check if your city has issued any active violations, liens, or fines on your property. Some municipalities may negotiate penalties to help homeowners resolve outstanding issues.
How Midwest Cash Offer Helps Homeowners with Code Violations
Selling a home with code violations or unpermitted work doesn’t have to be stressful! Midwest Cash Offer has helped thousands of homeowners by offering a simple, fast, and hassle-free way to sell their properties as-is—no repairs, no permits, no headaches.
We buy homes in any condition – No need to fix violations.
No inspections or city approvals required – We handle the paperwork.
Fast, cash offers – No waiting for financing or lender approval.
No agent fees or commissions – Keep more of your home’s value.
Help with liens & fines – We can negotiate on your behalf.
If you’re dealing with code violations, unpermitted work, or municipal fines, we can help. Get a fair cash offer today and move on with peace of mind!
