Selling a property can become more complicated when there is an unresolved building code violation associated with it. Property owners may discover an open violation when preparing to sell, while buyers may encounter one during due diligence.
An open violation does not necessarily mean a property cannot be sold. However, it can create additional challenges that should be addressed as early as possible.
Understanding how an open violation can affect a property transaction can help owners, buyers, and real estate professionals plan their next steps.
What Is an Open Building Code Violation?
An open building code violation generally means that a building department has identified a condition or issue that has not yet been fully resolved or closed in the jurisdiction's records.
Violations can involve many different types of work or property conditions, including construction performed without the required permits, alterations that do not match approved plans, or work that requires additional documentation or corrective action.
The specific requirements for resolving a violation depend on the property and the local jurisdiction.
Can You Still Sell the Property?
In many situations, a property with an open violation can still be sold. However, the violation may create complications during the transaction.
A buyer may request that the violation be resolved before closing, while a lender, title company, or other party involved in the transaction may require additional documentation.
Because requirements can vary, property owners should determine the status of any open violations as early as possible rather than waiting until the transaction is already underway.
How Can an Open Violation Affect a Sale?
An unresolved violation can potentially affect several parts of a real estate transaction.
- Delays During Due Diligence
Buyers and their professionals may review permits, building records, and outstanding violations as part of the due diligence process.
If an unresolved issue is discovered late in the transaction, additional time may be needed to determine what is required to address it.
Depending on the violation, resolving the issue may require professional evaluations, engineering plans, permits, inspections, repairs, or other work.
Understanding the potential scope early gives property owners more time to plan for these expenses.
- Negotiations Between Buyers and Sellers
An open violation can become a point of negotiation. The buyer and seller may need to determine who will be responsible for addressing the issue and how the outstanding work will affect the transaction.
Resolving the issue before negotiations become complicated can make the process easier for everyone involved.
What Should You Do If You're Planning to Sell?
If you know your property has an open violation, it is generally better to investigate it before putting the property on the market.
Start by obtaining available information about the violation and reviewing any related permits, plans, inspection records, or previous documentation.
From there, a qualified professional can evaluate the situation and help determine what additional steps may be necessary.
Addressing the issue early gives you more time to understand your options and avoid surprises during the transaction.
What If the Violation Is From Years Ago?
Older violations should not automatically be overlooked.
Properties can have unresolved issues that originated years earlier, even when ownership has changed or the property has undergone other improvements.
The appropriate way to address an older violation depends on the specific circumstances and the requirements of the applicable building department.
A professional evaluation can help determine what documentation or corrective action may be needed.
Can MDZ Help With Open Violations?
MDZ Inspections & Consulting provides engineering and consulting services to help property owners navigate building compliance issues.
Our team can evaluate the circumstances surrounding a property, coordinate appropriate engineering services, and assist with the documentation and processes that may be necessary to address outstanding issues.
We work with property owners, commercial clients, property managers, and other professionals throughout South Florida.
Don't Wait Until Closing
If you're planning to sell a property and discover an open building code violation, addressing the issue early can give you more time to understand the situation and determine the appropriate path forward.
Waiting until the closing process is underway may create unnecessary delays and complications.
If you have an open building code violation affecting your property, contact MDZ Inspections & Consulting to discuss your situation and learn about your options.
