Discovering that your house has building code violations can feel intimidating — especially when you’re preparing to sell. From unpermitted garage conversions to faulty wiring or missing smoke detectors, these issues can delay closings, lower your sale price, or scare away buyers.
So the big question is: Should you fix code violations before selling your home in California — or sell it as-is?
The answer depends on your timeline, budget, and the severity of the violations. Let’s walk through what you need to know, how to decide, and the best options for moving forward.
For a deeper overview, check out our full guide: How to Sell a House with Code Violations in Los Angeles.
What Counts as a Code Violation in California?
A code violation happens when a property doesn’t meet local or state safety, zoning, or building standards. These can range from small fixes to major structural hazards.
Common examples include:
- Unpermitted room additions or garage conversions
- Electrical or plumbing not up to code
- Missing smoke or carbon monoxide detectors
- Roof or foundation damage
- Illegal units or ADUs without proper permits
How Code Violations Impact a Home Sale
Code violations don’t automatically stop you from selling — but they can limit your buyer pool and affect financing.
Inspection Problems
When selling traditionally on the MLS, most buyers order home inspections. If code issues show up, the lender might refuse to finance the property until repairs are completed. That means your sale could fall through unless you fix the problem.
Lower Offers
Even if the buyer accepts the home “as-is,” they’ll likely factor the repair costs into their offer. Homes with major violations can sell for 10–30% less than comparable properties without them.
City Fines or Liens
If the city has issued official citations, fines can accrue daily. Some counties, like Los Angeles, may also record liens that must be cleared before closing. You can check this through your local building department’s records.
When It Makes Sense to Fix the Violations
1. When the Violations Are Minor
If issues are small — like missing handrails or outdated smoke detectors — it’s usually worth fixing. These repairs are inexpensive and can eliminate red flags on inspection reports.
Example: A seller in Pasadena had a few small electrical and railing issues. She spent $1,200 fixing them and sold her home $15,000 higher than similar as-is listings.
2. When You’re Targeting Traditional Buyers
If your goal is to sell to a retail buyer using a mortgage, fixing code violations can be essential. Most lenders require homes to meet minimum property standards, especially for FHA or VA loans.
The U.S. Department of Housing and Urban Development (HUD) outlines that FHA loans won’t approve financing for homes with health or safety violations, which means fixing key issues helps secure more qualified buyers.
3. When You Have Time and Budget
If you’re not in a rush and can afford repairs, completing them could attract more buyers and higher offers.
When Selling As-Is Makes More Sense
1. When Repairs Are Too Expensive
If violations involve major systems — like foundation, roof, or unpermitted additions — repair costs can easily reach tens of thousands. Selling as-is can save you from pouring money into a property you’re ready to move on from.
According to HomeAdvisor, foundation and roof repairs are among the most expensive home projects, often running between $10,000–$50,000 depending on the severity.
2. When You Need to Sell Fast
Repairing violations means dealing with permits, contractors, and inspections — which can take months. If you’re facing financial hardship, relocation, or foreclosure, selling as-is to a cash buyer can get you out quickly and still fairly.
Example: A homeowner in Long Beach received a city citation for an unpermitted ADU. Instead of paying $40,000 to bring it up to code, she sold the property as-is to a local cash buyer and closed in 10 days.
3. When the Property Has Multiple Issues
Some older homes have a mix of problems — electrical, plumbing, foundation — that would cost more to fix than you’d ever get back in resale value. In these cases, selling as-is usually makes the most financial sense.
Selling As-Is: What to Expect
When you sell as-is, you’re disclosing the known code violations but not committing to fixing them. Buyers agree to take the property in its current condition.
Disclosure Requirements
California law requires sellers to disclose known code violations on the Transfer Disclosure Statement (TDS). Failing to do so could result in legal issues later.
Cash Buyers and Investors
Cash buyers are typically the fastest and easiest route for selling a property with violations. They don’t need appraisals or lender approval, and they often handle city fines or liens after closing.
Example: A family in East LA sold their property with multiple violations — including an unpermitted bedroom and faulty wiring — directly to an investor. The buyer paid cash, closed in 12 days, and handled all city permits afterward.
What Happens If You Ignore Code Violations
Ignoring violations can make things worse. Cities can impose fines, record liens, or even declare the property unsafe for occupancy. Once a lien is attached, you can’t transfer a clear title until it’s resolved.
Example: A landlord in the San Fernando Valley ignored roof and electrical citations for over a year. The city recorded a $28,000 lien and began foreclosure proceedings to collect.
The City of Los Angeles Department of Building and Safety (LADBS) provides a searchable database for open code enforcement cases.
Tips for Handling Code Violations Before Selling
- Pull a Property Report: Check with your local building department for active violations or open permits.
- Get a Contractor Estimate: Knowing the repair cost helps you decide whether to fix or sell as-is.
- Disclose Everything: Transparency builds trust and avoids legal issues.
- Consider a Cash Buyer: If time or cost is an issue, investors can purchase the home as-is.
Final Thoughts
So — should you fix code violations before selling?
If the repairs are minor and you’re not in a rush, fixing them can help you get top dollar. But if violations are major or you need to sell quickly, selling as-is is often the smarter move.
At Mrs. Property Solutions, we’ve helped countless California homeowners sell properties with code violations fast — no repairs, no inspections, and no stress.
If you’re ready to move on, reach out today for a fair, cash offer and skip the headaches of fixing code issues.