Selling a house with code violations North Carolina

You can absolutely sell a house with code violations in North Carolina. With proper disclosure and adjusting the sales price appropriately, you can sell a property even if it’s not up to code. In this article we cover everything you need to know to navigate a sale successfully.

Table of contents

1. Selling a house with code violations North Carolina
2. What is a code violation?
3. What happens if you have a code violation in North Carolina?
4. What are examples of common code violations in North Carolina?
5. Can you sell a house with code violations North Carolina?
6. What are code violations that require repairs?
7. What are my options when my property has code violations?
8. Tips for selling a house with code violations in North Carolina
9. Closing thoughts: Selling a house with code violations North Carolina

Selling a house with code violations North Carolina

Uncovering code violations during the home-selling process can prove immensely frustrating. While minor infractions might not pose significant hurdles, major violations could impede the sale altogether. Fortunately, you do have several avenues to explore for progressing with the sale. This is your comprehensive guide on selling a home with code violations in North Carolina.

What is a code violation?

A code violation on a house refers to a breach of local, state, or federal building codes, regulations, or ordinances. These codes are established to ensure the safety, health, and welfare of occupants and the community. Code violations can encompass a wide range of issues, including structural deficiencies, electrical problems, plumbing issues, fire hazards, zoning violations, and more. When a property fails to meet these standards, it is considered to have a code violation.

Initially, a code violation might seem daunting, potentially hindering or halting the selling process as most buyers prefer properties ready for immediate occupancy. However, such a violation doesn’t necessarily indicate that the property is unsafe or condemnable. In some cases, receiving a violation notice could stem from minor issues, such as unkempt landscaping. For older or inherited properties, violations may simply reflect outdated standards.

What happens if you have a code violation in North Carolina?

If you have a code violation on your property in North Carolina, the consequences can vary depending on the severity of the violation and the local ordinances. Typically, the process involves receiving a notice of violation from the local code enforcement authority, which outlines the specific issue and may include a deadline for correction.

Failure to address the violation within the specified timeframe can result in escalating penalties, such as fines or legal action. In some cases, the municipality may take corrective action themselves and bill you for the expenses.

If the violation poses a significant safety hazard or is left unaddressed for an extended period, it could lead to more severe consequences, such as condemnation of the property.

It’s essential to address code violations promptly to avoid further penalties and ensure the safety and compliance of your property with local regulations. Additionally, consulting with a legal professional or local code enforcement agency can provide guidance on how to resolve the violation effectively.

What are examples of common code violations in North Carolina?

Code violations are frequently found in older construction homes, but they can manifest in any type of property. These infractions often stem from DIY repairs and renovations, though substandard work by contractors can also lead to violations. It’s important to note that building codes undergo regular revisions, meaning compliance may change over time. Homeowners are often shocked to discover that their home has code violations because of these frequent changes. Building codes are tailored to specific locations, often influenced by factors like climate and geography. To address concerns about potential violations, it’s advisable to research the specific codes applicable to your municipality.

Below are some of the most common code violations we see in North Carolina:

Electrical Issues

This could range from outdated wiring to improper installations, such as overloaded circuits, faulty outlets, or missing GFCI outlets. Ground-fault circuit interrupters (GFCIs) play a crucial role in maintaining safety within your home’s electrical setup. These outlets are mandated in areas like bathrooms, kitchens, and specific zones throughout your home. Any absence or malfunction of GFCIs not only violates code but also poses significant safety risks.

Plumbing Problems

Examples include leaks, improper drainage, or inadequate water heater installations. Also, existence of polybutylene piping is now considered a material fact to disclose to buyers in North Carolina. Polybutylene piping has been discovered to react with chlorine in water, resulting in micro-fractures that can lead to pipe bursts, causing flooding and water damage.

Structural Deficiencies

This might involve issues with the foundation, roof, walls, or framing, such as cracks, sagging, or water damage.

Fire Safety Violations

These can include missing or malfunctioning smoke detectors, inadequate fire exits, or improper storage of flammable materials.

Unpermitted Additions/Renovations

Constructing or renovating a property without the necessary permits is a common violation.

Zoning Violations

These occur when the property use does not comply with local zoning regulations, such as running a business in a residential area without proper permits.

Health & Safety Concerns

This encompasses a wide range of issues such as missing carbon monoxide detectors, mold and mildew growth, pest infestations, inadequate ventilation, or improper sewage disposal.

Missing Expansion Tanks for Water Heaters

This can lead to excessive water pressure buildup caused by the natural expansion of heated water. An expansion tank serves to mitigate this issue by accommodating the expanded volume, ensuring optimal system performance.

Exterior Maintenance

Violations can include issues such as overgrown vegetation, deteriorating siding or roofing, or failing to maintain sidewalks and driveways.

Can you sell a house with code violations North Carolina?

Absolutely, the answer is YES.

When selling a house with code violations, transparency is key. Of course, if possible, we advise addressing the violations with repairs for the most financially beneficial outcome. However, if you prefer to sell the house as-is, it’s still feasible to sell house that’s not up to code. Pricing the property to accommodate the buyer’s potential repair costs can make the property appealing to certain buyers, such as investors and companies that buy houses.

What are code violations that require repairs?

Not all code violations have to be repaired in order to sell. As long as they are disclosed to a buyer and the buyer is willing to inherit the code violations, there is nothing stopping a house from being sold with code violations.

However, code violations that present imminent safety concerns are likely going to be a required repair in order for the buyer’s lender to approve the loan.

Code violations such as plumbing, electrical, structural, and pest infestations (like termites) will all be required repairs if a lender is involved.

What are my options when my property has code violations?

Fix the code violations

When determining the best course of action, it’s crucial to consider the buyer’s ability to secure financing and insurance, as these factors heavily influence the sale process. Mortgage lenders typically mandate that sellers address any issues before closing, while local codes necessitate resolution to avoid potential fines. Consequently, addressing violations is often the optimal route for obtaining the best price for your house.

Some violations are purely cosmetic and can be rectified with minimal expense and effort, such as draining and cleaning an unused pool, asbestos removal, repainting peeling surfaces, and basic landscaping. However, more substantial problems like plumbing issues or structural damage may incur higher costs and require more time to rectify. If funds or time constraints prevent undertaking these repairs, exploring alternative options may be necessary.

Lower sales price to allow a buyer to fix the code violation

If you prefer not to handle the stress of repairing the house yourself, you can consider lowering the asking price to offset the repair costs for the buyer to bring the property up to code.

The buyer’s decision to proceed with the purchase often hinges on the severity of the code violations. If they perceive the violations as significant, such as electrical or fire hazards, they may opt to walk away from the deal. Alternatively, they may negotiate aggressively to lower the price to accommodate the repair expenses, leaving you to decide whether to accept the offer.

Sell As-Is to a cash home buyer

If you’re unable to afford the necessary repairs or can’t find a buyer willing to undertake them, collaborating with a real estate investor or house flipper who purchases homes in as-is condition might be a viable option. Many investors specialize in distressed properties and view them as appealing opportunities.

Furthermore, these investors typically offer cash, making it an expedient choice if you’re looking to sell your house quickly. Opting to sell to a cash buyer means you won’t incur commissions for a real estate agent. Subsequently, you could finalize the sale swiftly, leaving you with a fresh start and the funds to embark on your next chapter elsewhere.

Tips for selling a house with code violations in North Carolina

Selling a house with code violations can be challenging, but with careful planning and consideration, it’s possible to navigate the process successfully. Here are some tips:

1. Full Disclosure: Be transparent about any known code violations with potential buyers. Disclosing the issues upfront can help build trust and avoid legal complications down the line.
2. Price Adjustment: Consider adjusting the asking price to account for the cost of needed repairs. Pricing the property competitively can attract buyers who are willing to take on the challenge of addressing the violations.
3. As-Is Sale: Selling the property “as-is” can be an option, particularly if you’re unable or unwilling to make repairs. Be prepared for buyers to negotiate based on the condition of the property.
4. Targeted Marketing: Tailor your marketing efforts to attract buyers who are specifically looking for fixer-upper properties or investment opportunities. Highlight the potential of the property once the violations are addressed.
5. Work with Investors: Explore working with real estate investors or house flippers who specialize in purchasing distressed properties. They may be willing to buy the property as-is and handle the necessary repairs themselves.
6. Consult Professionals: Seek guidance from real estate agents, attorneys, or contractors familiar with local building codes and regulations. They can provide valuable insights and help navigate the selling process effectively.
7. Be Prepared for Negotiation: Understand that buyers may use the code violations as leverage during negotiations. Be open to discussing potential solutions and compromises to facilitate the sale.
8. Ensure Legal Compliance: Familiarize yourself with your legal obligations as a seller regarding code violations and disclosures. Compliance with local regulations is essential to avoid potential legal issues.

Selling a house with code violations requires careful planning, transparency, and patience. By considering these tips and seeking professional guidance, you can increase your chances of a successful sale while minimizing potential risks.

Closing thoughts: Selling a house with code violations North Carolina

While code violations can complicate the process of selling your home, there are viable options available. You may choose to address the violations yourself, list the house at a discounted price, or opt for a direct sale to a cash buyer. Ultimately, your decision will hinge on your objectives, timeframe, and financial circumstances.

At Freedom Choice Realty & Investments we specialize in walking homeowners through this process to determine what route is best. We are a full service real estate company with the ability to buy your house as-is or list your house for top dollar. We’d love the opportunity to work with you.

These findings apply to all cities and towns in North Carolina, including Raleigh, Durham, Fayetteville, Johnston County, Sanford, Burlington, and surrounding areas.

Author: Jason Hill

I am a seasoned real estate agent and investor with nearly a decade of experience helping families sell property with code violations in North Carolina. As the founder of Freedom Choice Realty & Investments my mission is to deliver simple and hassle free selling solutions to North Carolina homeowners. With the ability to either list your house or buy it as-is we have a unique offering that caters to those looking for ways to sell a house with code violations in North Carolina.