In-Depth Article

How to Sell a House with Code Violations in California

Navigate unpermitted work and violations without costly repairs or permit battles.

Updated Jan 2025(424) 386-9273

Code violations and unpermitted work are common in California homes, from garage conversions to room additions built without permits. These issues can complicate traditional sales, but you still have options to sell your property.

MeritHomeBuyers regularly purchases homes with code violations and unpermitted work throughout Southern California. We handle the permit and compliance issues after closing, so you can sell without the hassle.

Key Takeaways

Code violations must be disclosed to buyers under California law
Unpermitted work is common and does not prevent sales to cash buyers
Retrofitting violations can be expensive and time-consuming
Cash buyers factor violation costs into offers and accept the risk
Selling as-is avoids months of permit process and contractor hassle

Common Code Violations We See

Code violations range from minor issues like unpermitted water heater installations to major problems like unpermitted additions or garage conversions. California cities enforce building codes with varying degrees of strictness.

Some violations are safety-related and must be disclosed, while others are permit paperwork issues. Either way, they can affect your ability to sell through traditional channels.

Unpermitted room additions or garage conversions
Illegal ADUs or guest houses without permits
Unpermitted electrical, plumbing, or HVAC work
Fence, deck, or patio cover violations
Zoning violations like too many units on property

Options for Selling with Violations

You have three main options: fix the violations and pull proper permits, disclose and sell as-is to an investor, or negotiate with the city for compliance plans. Each approach has different costs and timelines.

Fixing violations can cost thousands and take months navigating permit offices. Selling as-is to a cash buyer who accepts violations is often faster and simpler.

Retrofit and permit: Can cost $5,000-$50,000+ depending on scope
Sell as-is: Accept a lower price but avoid repair hassle
Negotiate compliance plan: City may allow timeline to fix
Demolish unpermitted work: Sometimes required for closure

California law requires sellers to disclose known unpermitted work. Failure to disclose can result in legal liability after the sale.

Why Cash Buyers Accept Code Violations

Traditional buyers and their lenders often will not accept properties with code violations. Lenders may refuse to finance, and buyers fear unknown costs and liability.

Cash investors like MeritHomeBuyers have experience handling code issues. We factor permit and compliance costs into our offer and take on the risk ourselves. This lets sellers move forward without resolving violations first.

No lender restrictions on property condition
Experience navigating permit processes after purchase
Assumption of all compliance costs and risks
Quick closing without waiting for permit resolution

“The previous owner had converted the garage and added a room without permits. The city was threatening fines and no regular buyer would touch it. MeritHomeBuyers bought it knowing the issues and I walked away clean.”

David M.

Garage conversion and unpermitted addition

Frequently Asked Questions

Do I have to fix code violations before selling?

Not when selling to a cash buyer like MeritHomeBuyers. We buy properties with violations as-is and handle compliance ourselves. You must disclose the violations to any buyer.

Can banks finance a house with code violations?

Most lenders will not finance properties with significant code violations or unpermitted work. This is why cash buyers are often the best option for these properties.

Will code violations affect my sale price?

Yes, buyers will factor in the cost to fix violations when making offers. However, you avoid spending that money yourself and dealing with the permit process.

What if I did not know about the unpermitted work?

You should still disclose what you discover. If you genuinely did not know, document your lack of knowledge. Cash buyers like us accept properties regardless of who did the work.