How to Sell a House with Code Violations in California

You can sell a house with code violations in California. But it may take longer, sell for less, or scare away buyers.

Code violations are things that break local building rules. It could be something small like no smoke alarms. Or it could be something big like an unpermitted room.

In this guide, you’ll learn:

• What code violations are
• What you must tell buyers
• What to fix (and what to skip)
• How to sell fast, even with problems

This matters most if you live in Los Angeles County, Riverside County, San Bernardino County, Orange County, or San Diego County. Cities in these areas take code violations seriously.

If you need to sell fast, this guide will help you do it right.

What Are Code Violations?

A code violation means something in the house breaks a safety or building rule. These rules are California building codes. Cities and counties in California use them to keep homes safe.

What Causes a Code Violation?

A house may break the code if:

• It has unpermitted work
• Something is unsafe or damaged
• It’s missing items the law requires

Some code problems are small. Others are serious and may stop a sale.

Common Code Violations in California

Most cities and counties in Southern California follow the same basic building rules. But older homes—especially in areas like Los Angeles, Riverside, and San Bernardino—tend to break these rules more often.

Here are common problems that lead to code violations:

• Unpermitted garage conversions
• Room additions done without city approval
• Old or unsafe electrical wiring
• Leaking or outdated plumbing
• Roof damage or missing shingles
• Loose stairs or missing railings
• No working smoke or CO detectors
• Cracks in the foundation
• Mold, termites, or rodent issues

If your house has one or more of these, the city may consider it out of code.

Can You Sell a House with Code Violations in California?

Yes, you can legally sell a house with code violations in California. The state does not stop you from selling, even if the home has problems. But there are rules you must follow.

You Must Disclose the Problems

If you know about the violations, you must tell the buyer. This is part of California’s disclosure law. If you hide the issues and the buyer finds out later, you could get sued.

You’ll need to fill out forms like the Transfer Disclosure Statement (TDS). These are standard in most California home sales.

Can You Sell Without Fixing the Violations?

Yes. You can sell the home as-is, but some buyers may back out. Others may ask for a lower price to cover repair costs.

In areas like San Bernardino or Riverside County, older homes often have unpermitted additions. Cash buyers in those markets are used to these issues. But traditional buyers using loans might walk away if the home can’t pass inspection.

Who Buys Homes with Code Violations?

• Cash buyers usually don’t care about minor code issues.
• Investors will factor the repair cost into their offer.
• Buyers using loans (FHA, VA, conventional) may not qualify if the home has serious problems.

Unpermitted work doesn’t just cause legal risks. It can also lower the appraised value or make the home uninsurable until the issue is resolved. Some lenders won’t issue a mortgage until the work is permitted or removed.

Risks of Selling a House with Code Violations

Selling a house with code violations can be done, but there are real risks. Some are legal, some are financial, and others slow down the sale.

You Might Get a Lower Offer

Buyers may ask for a lower price if the home has major issues. Some will walk away entirely. Others will want repair credits or extra inspections.

In places like Orange County or San Diego County, buyers often expect homes to be in good shape. If the house needs work, you’ll likely need to discount the price.

You May Lose Buyers Using Loans

Most mortgage lenders will not approve a loan for a house that has:

• Major electrical problems
• Roof leaks
• Broken stairs
• Health risks like mold or pests

This is common in older homes across Southern California. If the home won’t pass inspection, the buyer can’t get the loan—and the deal falls through.

Repairs Can Slow Down the Sale

If you plan to fix the violations before selling, be ready for:

• Permit delays
• Inspections
• Contractor schedules

In busy cities like Los Angeles or San Bernardino, getting permits can take weeks. This can delay your sale or cost you more in holding expenses. Always hire a licensed contractor in California if you plan to do repairs.

Legal Risk If You Don’t Disclose

If you hide a known code violation, you can get sued after the sale. California law protects buyers from surprise repair costs. If they find out you lied or left something out, it could come back on you legally.

What You Must Disclose in California

If you know about a code violation, you have to tell the buyer. California has strict seller disclosure laws that require you to tell buyers about known problems. It doesn’t matter how big or small the problem is.

Required Forms

When you sell a house in California, you must fill out:

• Transfer Disclosure Statement (TDS)
• Seller Property Questionnaire (SPQ)

These forms ask about things like:

• Work done without permits
• Problems with plumbing, roof, or wiring
• Past or current damage
• Safety issues

Even if the problem was fixed, you still need to mention it if you knew about it. The main law is California Civil Code § 1102, which outlines what sellers must disclose.

What Happens If You Don’t Tell the Truth?

If the buyer finds out you hid a violation:

• They can cancel the sale (if still in escrow)
• They can sue you (even after closing)
• You might have to pay for repairs or legal fees

This happens most often with unpermitted work—like garage conversions or room additions—in areas with tight code enforcement, like Riverside County and parts of Los Angeles.

Bottom line: be honest. Even if you plan to sell the house as-is, the law still says you have to disclose what you know.

3 Options to Sell a House with Code Violations

If your house has code problems, you have three ways to sell. The right choice depends on your time, money, and how serious the violations are.

1. Fix the Violations Before Selling

This is the most traditional option. You hire a contractor, pull permits, and bring everything up to code.

Pros:

• More buyers will be interested
• You may get a higher sale price
• Easier for buyers using loans

Cons:

• Repairs can be expensive
• Permits take time
• You may still need to lower the price

In cities like San Diego or Orange County, repairs may cost more due to strict local codes or high contractor rates.

2. Sell As-Is to a Regular Buyer

You can list the home and let the buyer deal with the repairs later.

But here’s the problem:

• Many buyers will ask for credits or repairs
• Their loan might get denied if the home doesn’t pass inspection
• The sale can fall through during escrow

This path can work, but only if the violations are minor and the buyer is flexible.

3. Sell As-Is to a Cash Buyer

Cash buyers don’t use loans and usually don’t care about permits or violations. They buy the house in its current shape.

Pros:

• No repairs needed
• No delays or appraisals
• Fast closing — often in a week

Cons:

• Offer may be below market value (but you skip repair costs)

In places like San Bernardino or Riverside County, many sellers choose this route because it’s faster and easier—especially for homes with major problems.

How to Decide Whether to Fix or Sell As-Is

Not sure if you should fix the violations or sell your house as-is? Here’s how to decide.

1. Compare Repair Costs vs Offer Drop

Get repair estimates. Then talk to a buyer or agent to see how much the house would sell for:

• With repairs
• Without repairs

If fixing the house costs $30,000 but only adds $20,000 in value, it may not be worth it.

2. Look at Your Timeline

Ask yourself:

• Do I need to sell fast?
• Can I wait for permits, inspections, and contractor work?

In busy counties like Los Angeles, repair delays are common. If you’re moving or need cash now, waiting may not help you.

3. Add Up Holding Costs

Every extra month you hold the house costs money:

• Mortgage
• Property taxes
• Utilities
• Insurance

If repairs take months, these costs add up fast.

4. Consider Buyer Risk

The longer the house sits with open violations, the harder it is to sell. Some buyers will walk away as soon as they hear “unpermitted room” or “electrical issue.”

If you want a sure sale, as-is may be the better choice.

When Repairs Are Required (Non-Negotiable Violations)

Some code violations can’t be ignored. These are safety issues. If you try to sell a house with these problems, the city may step in—or the deal may fall apart.

Common Non-Negotiable Violations

If your home has any of these, you may be forced to fix them before selling:

• Bad wiring that could start a fire
• Gas leaks or broken heaters
• Missing smoke or CO detectors
• Loose railings or broken stairs
• Mold or water damage causing health problems
• Asbestos or lead paint (especially in older homes)

Cities in Southern California—especially in places like Los Angeles and Orange County—watch these issues closely. If they find them, they can fine you or delay the sale.

City Orders or Liens

If the city already issued a code enforcement notice or put a lien on the property, the buyer may not be able to close until it’s cleared.

Some cities won’t let the title transfer until certain repairs are done.

If you’re not sure what’s required, call the city building department or get a home inspection. Better to know upfront than lose the deal later.

How Code Violations Impact Appraisal and Financing

If you’re selling to a buyer using a loan, code violations can cause big problems. Most lenders need the home to pass inspection and meet basic safety rules. Homes with major safety issues may not meet FHA appraisal requirements.

FHA appraisers follow stricter rules under HUD Handbook 4000.1, making it harder for homes with violations to pass.

Lenders Will Not Approve Certain Homes

Buyers using FHA, VA, or even conventional loans may be denied if the house has:

• Electrical hazards
• Missing smoke or carbon monoxide alarms
• Water damage or mold
• Roof leaks
• Unpermitted additions

The lender will either reject the loan or demand repairs before closing.

The Appraiser Can Lower the Home Value

Even if the loan is approved, the appraiser may give the house a lower value because of:

• Unfinished work
• Safety risks
• Signs of damage

This can force the buyer to pay out of pocket or walk away from the deal.

In Some Areas, Appraisers Flag More Issues

In counties with tighter enforcement—like parts of Orange County or San Diego—appraisers may call out even small violations. This can lead to delays, extra inspections, or lost buyers.

If you want to avoid financing problems, selling to a cash buyer may be the safer option. No loans means no appraisals, and no surprises at the last minute.

How Cash Buyers Handle Code Violations

Cash buyers make the process easier when your house has problems. They don’t need loans, so they skip most of the delays that scare off regular buyers.

No Bank, No Appraisal, No Inspection Delays

Cash buyers:

• Don’t need a mortgage
• Don’t wait on lenders or banks
• Don’t require a full home inspection
• Don’t ask for repairs

They understand the risks and include those costs in their offer.

They Accept Code Problems As-Is

Most cash buyers are investors. They plan to fix the home after buying it. This means they don’t care about:

• Unpermitted work
• Damaged roofs or walls
• Mold or pests
• Plumbing or wiring issues

They buy based on what the house will be worth after it’s fixed.

They Close Fast

Many cash buyers can close in 7 days or less. There are no delays for:

• Loan approval
• Appraisals
• City permits or paperwork

This helps if you’re behind on payments, dealing with code fines, or need to move quickly.

If you’re selling a house with code violations in Southern California, this is often the fastest and least stressful option.

Step-by-Step: How to Sell a House with Code Violations

Selling a house with code problems doesn’t have to be hard. Follow these simple steps to avoid delays and keep control of the process.

1. Check for Code Violations

You can:

• Ask your local city or county office
• Request a code inspection
• Look for past notices or open permits

If you’re not sure, a licensed home inspector can help.

2. Decide If You Want to Fix the Problems

Compare:

• Repair costs
• Time to finish
• Holding costs (mortgage, taxes, insurance)

If fixing takes too long or costs too much, selling as-is may be better.

3. Get Your Disclosures Ready

If you know about any problems, write them down. You’ll need to fill out:

• Transfer Disclosure Statement (TDS)
• Seller Property Questionnaire (SPQ)

Be honest. It protects you and helps avoid legal trouble later.

4. Choose the Right Type of Buyer

• If the problems are small and you’re not in a rush, you can list the home on the market.
• If the home has major damage or violations, a cash buyer is often the safest bet.

5. Accept the Offer and Close the Sale

With a cash buyer, you can skip:

• Repairs
• Appraisals
• Loan delays

You sign the paperwork, hand over the keys, and get paid.

Want to Sell a House with Code Violations in Southern California?

If your house has code violations, you don’t need to fix anything. We’ll buy it as-is, even if it has major damage or unpermitted work.

At SoCal Home Buyers, we’ve helped sellers in Los Angeles County, Riverside County, San Bernardino County, Orange County, and San Diego County close fast—without delays, fees, or stress.

Here’s what you get:

• ✅ Cash offer within 24 hours
• ✅ No repairs or cleaning
• ✅ No agent fees
• ✅ Close on your schedule

If you’re ready to sell or just want to know what your house is worth, call us at (951) 331-3844 or fill out the short form below.

Frequently Asked Questions About Selling a House with Code Violations

These are common questions sellers ask when dealing with code problems in California.