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Sell a house with code issues as-is

Unpermitted additions, open permits, or code violation notices can complicate a traditional home sale, since many buyers and lenders want these issues resolved before closing. Fixing them can mean navigating permitting offices, inspections, and possibly reworking existing construction.

If your property has code-related issues, it's worth knowing that an as-is sale is one option that doesn't require the issues to be resolved first. This page provides general information, not legal advice about your specific situation.

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Unpermitted additions

Additions, converted garages, or extra rooms built without proper permits are a common issue for older homes or those updated by previous owners. These can complicate financing for buyers who intend to use a mortgage, since lenders often require permitted square footage.

Open or expired permits

A permit that was pulled but never finalized, or one that expired before inspection, can leave a property in limbo from the city's perspective. Closing these out generally requires additional inspections and sometimes corrective work.

Code violation notices

Some homeowners receive notices from their city or county regarding code violations, which can range from minor to significant. Understanding the specifics of a notice and what's required to resolve it typically calls for guidance from the local permitting authority or a qualified professional.

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Why these issues affect traditional sales

Buyers using financing often need appraisals and inspections that can flag unpermitted work or open violations, which can delay or derail a traditional sale. Sellers are sometimes asked to resolve these issues or lower the price to account for them.

Selling as-is with code issues

An as-is sale allows these issues to be factored into the evaluation rather than requiring resolution beforehand. This can be especially useful if resolving the issues would be costly, time-consuming, or require work you're not equipped to manage.

What to share during an evaluation

If you have documentation about permits, violation notices, or prior work, sharing that information can help provide a clearer picture of the property, though it isn't required to start.

  • Any permit records you have on file
  • Copies of code violation notices, if received
  • General description of unpermitted work, if known
  • Any correspondence with the local building department

Getting guidance

Because code and permitting matters are legal and regulatory in nature, homeowners may want to consult a qualified attorney or contractor familiar with local requirements, in addition to exploring an as-is sale.

This page does not provide legal advice. Homeowners with code violations or permitting questions should consult a qualified attorney, contractor, or their local building department.

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