Selling A House With Code Violations In California

Selling a house with code violations in California can create a number of issues.

A few of these issues for the seller:

1. Limited buyers – not many buyers are willing to deal with code violations
2. Complications with financing
3. Potential significant costs to seller in correcting these issues
4. Long escrow period because the due diligence process is more complicated

Sellers should walk through the house and address any potential code violations. Selling a house with code violations in California does not have to be difficult, though.

Here are a few solutions:

1. Put up the money to fix the issues. Contact your local code enforcement and find out what needs to be done. Make sure to keep the code enforcement updated on your progress. Sellers should examine the cost, and calculate how much more they can get for the house in the market. Some issues may not be worth fixing. For example, if simple landscaping and mowing is all you need to do to fix the issue, it will probably be worth it to fix. Some bigger issues may not give you the best return on your money. Regardless, when selling a house with code violations in California sellers need to understand what will return the most money.
2. List the property and sell it in “As-Is” condition and adjust the price accordingly.
3. Sell the house to a cash buyer who specializes in purchasing problematic real estate.

If you want to sell but have a tenant occupying the property:

1. Ensure that the tenant is present at the meeting with the enforcement officer. This will help the tenant understand the violation and what steps will be needed to bring the property into compliance.  Review the lease between the owner and the tenant and determine if the tenant has any liability. A well-drafted lease should contain language requiring the tenant to maintain the property in accordance with all laws. The tenant may be liable to the property owner, as the landlord, but ultimately, the owner is responsible to the local government and must bring the property into compliance.

Make sure to keep the local code enforcement updated on your progress. Remember that anything you write or say to staff members of the code enforcement office can be used as evidence in a code enforcement hearing.

Selling a house with code violations in California can be a pain. If you would like to sell a house with code violations in California, give us a call for a cash offer. No need to fix any violations as we purchase as-is with cash.

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