Month: January 2022

While buyers may fall in love with wainscotting, shiplap, and other charming stylistic elements in your home, if your home isn’t up to code, you may be unable to sell it on the open market. Although it is possible to sell your home with code violations, you may receive a lower amount than its valuation price.

Understanding common code violations and your options for selling a house with code violations can help you get a fair price for your home.

What is a Building Code Violation?

Building codes refer to structural and occupancy guidelines at the local, state, and federal levels to protect the health and safety of household members and the general public. If your home doesn’t meet these guidelines, it is considered to be a code violation. 

Building codes cover minimum safety requirements across various categories, including:

• Structural stability. Are the frame and foundation stable and secure?
• Lighting and ventilation. Does your home have adequate lighting, ventilation, and an HVAC system?
• Energy consumption. Are the HVAC system and fixtures energy-efficient and emissions compliant?
• Entrances and exits. Are there accessible emergency exits if there is a fire?
• Hygiene and sanitation. Are your home’s pipes eliminating water waste correctly?
• Occupant safety. Is your home made from fire-safe materials, and does it have a fire-safe layout?

Building codes are continuously revised to account for new technologies and safety standards. Often homeowners with homes built in the first half of the last century or earlier discover their home is not up to code when they go to sell it. 

Homeowners who have DIY renovated or remodeled their home may also discover their home is not up to code. If you have made alterations to your home without securing the appropriate permits or using approved materials, you may have an unknown code violation. 

Some federal codes are frequently revised; even homes built only a decade ago may be in violation. For example, the National Electric Code (NEC) has been revised 16 times since it was implemented in 1977. So, it’s crucial to have your home inspected before listing it for sale.

What Are the Most Common Code Violations?

There are several common code violations you may encounter when it comes time to sell your home. They can be problems that range from simple fixes to major repairs. In many cases, the code violations are not visible to potential buyers, so you must ensure you disclose any elements of your home that are not up to code when selling your home. 

Some common code violations include:

• Handrail hazards. Most building codes require that handrails have a return – a section that bends to prevent items from getting caught. 
• Improper bathroom ventilation. Exhaust fans in bathrooms must vent to the exterior of your home, such as the roof or an outside wall. They cannot vent to an attic or another room. 
• Misplaced smoke alarms. Federal fire codes require that each level in the home has a smoke alarm, and any newly built homes must also have smoke alarms in the bedrooms. Fire alarms must be hardwired to the electrical circuitry and have a backup battery. They must also be placed at least 4” from the wall for ceiling-mounted models and 4-12” below the ceiling for wall-mounted units. 
• Defective or missing GFCIs. Ground-fault circuit interrupter (GFCI) protection is mandatory for all kitchen, bathroom, garage outlets, and all exterior circuits. These devices will cut the circuit if they detect a power surge and prevent accidental electrical shocks. 
• Improperly installed windows. If you have replaced the windows in your home, they may impact the home’s energy efficiency if installed incorrectly or made from sub-standard materials. 
• Incorrectly installed plumbing. Insufficient drainage pipe slope can cause wastewater to flow backward, impacting the sanitation quality of the home. Water heaters installed without a permit or the proper relief valve also violate the building code.

What Are My Options if My Home has Code Violations?

If you discover your home has code violations when you’re preparing to sell, you have a couple of options for moving forward. 

• Make repairs to bring your home up to code

Before selling a home with building code violations, you can correct the building code violations yourself. Identify the repairs necessary to make your home attractive to buyers and prioritize them. Some violations like landscaping changes or installing handrails are simple and appeal to buyers cosmetically, making them worthwhile. 

• Arbitrate a deal with a buyer to pay for repairs 

You must disclose known code violations to potential buyers if they are not repaired. However, some buyers may be willing to move forward with the purchase and make the repairs themselves in exchange for a lower sale price. 

If you are willing to accept a lower offer on your home, you may be able to arbitrate a deal with the buyer to sell the home in its current condition. The homebuyer can then make the repairs themselves with the money they saved by making a lower offer. 

• Sell your home as-is

If you want to avoid the hassle of negotiating with buyers and giving a cut of your profits to a realtor, consider listing your home as a distressed property. Distressed homebuyers specialize in purchasing your home as-is while handling the paperwork and legal aspects of the transaction for a quick sale. 

When you sell a property as-is, the buyer understands they will receive the property in its current state with no further repairs to the existing faults. 

Sell Your Home With Building Code Violations Through Meli

Meli makes the process of selling your distressed property simple and stress-free with a few steps. We are a homebuyer, brokerage, and consulting firm serving the Orlando area. 

Contact us to request a no-obligation free consultation. We’ll ask you a few basic questions about the property. We’ll schedule a walk-through of your property to understand the home and the existing code violations. 

You can expect to hear back from us on the same day with an offer on your home, or we’ll help you list the property. With listing assistance from Meli, we’ll help you clear up any issues that could delay a sale. 

After your home is sold with the help of our team, you get paid fast and walk away from the distressed property to focus on your future investments. To learn how Meli can help you, contact us today.

Image Credits

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Due to unforeseen circumstances in life, it’s sometimes impossible to pay your bills on time. When you’re a homeowner, there can be serious repercussions to missing these payments, including having liens placed on your home. If you want to sell a property with a lien on it in Florida, Meli can offer guidance and support to make the process stress-free.

What is a Lien?

A lien is a legal claim that is placed on your personal property, like your home. Liens are placed on your home by any creditor you owe money to. This includes the government, banks, businesses, and individuals. Liens allow creditors to collect payments and give them a right to own a part of your property if you fail to make your payments.

Some liens are more common than others. Banks place a lien on your home when you take out a mortgage. The lien protects the bank in case you default on your mortgage payments. Other liens are less common and more serious. Tax liens are only placed on your property if you fail to pay your taxes. A lien can also be placed on your property as part of a legal judgment.

Types of Liens

There are various types of liens that can be placed on your real estate property in Florida:

Judgment liens

Per Florida Statutes Chapter 55, a judgment is a court order that states one party owes another a specific amount of money. In Florida, if the party doesn’t pay the amount owed, the creditor may attach a lien to the individual’s personal property, including real estate. This ensures the creditor is paid from the profits when the home is sold.

Construction liens

A construction lien, also called a mechanic’s lien, may be filed against a property when the owner fails to pay for services rendered, like home repairs or renovations. It’s valid for one year after filing with the county recorder’s office in the county where the property is located.

Mortgage liens

Mortgage liens are a voluntary or consensual lien the homeowner receives when they take out a mortgage for their home. A bank places the lien on their home when the mortgage originates. The lien remains on the property until the mortgage is paid off. Your house is used as collateral by your bank for the duration of your mortgage.

If you default on your mortgage payments, your home may end up going into foreclosure. The mortgage lien gives the bank partial ownership of your home, and they will deduct the debt you owe from the sale of your foreclosed home.

Homeowners that pay their mortgage will have their lien removed once the mortgage is paid or their home is sold. In Florida, mortgage liens are removed from your title within 14 days of the cancellation or completion of the loan.

Tax Liens

Tax liens are a type of statutory lien created by a law or statute in favor of taxing authority. This could be the IRS, the state, or the federal government. A tax lien may be placed on your property by a taxing authority when you fail to pay your debts or taxes, such as property tax.

Can You Sell a Property With a Lien On It?

If you’re struggling to repay your debts, you may wonder, “can you sell a property with a lien on it?” It’s possible to begin the sales process with a tax lien on your home. However, in most cases you’ll need to settle the lien before it’s possible to close.

The challenge in selling a property with a lien on it is locating a buyer willing to deal with this process and the creditors involved. Many buyers and realtors view liens as a significant issue with a home, so you’ll need to consider listing the property as a distressed home. This means the home will be sold in as-is condition, typically below market value.

Work with a homebuyer who specializes in distressed properties and understands the necessity of negotiating with creditors to reduce settlements or secure a release of the liens.

How to Remove a Lien From Your Property

While having liens on your property is stressful, it’s possible to remove these liens. If you’re wondering how to remove a tax lien before selling, the easiest option is to pay the taxes you owe. To make sure everything is settled correctly, it’s important to contact the federal or state government directly, depending on who you owe.

If you cannot pay the debt you owe a taxing authority or a creditor, you can explore other options like:

Setting up a payment plan

You can work with the IRS to set up a payment plan for repayment. Another possibility for settling a tax lien is applying for an Offer in Compromise. This, if accepted, allows you to pay back less than you originally owed.

Contest the lien

If you believe a lien was put on your property in bad faith, you can contest the lien by filing an appeal to have the lien released.

Negotiate a release

You can attempt to negotiate with creditors to obtain a full or partial release of the lien. This can eliminate the lien entirely or reduce the amount you owe.

Running out the statute of limitations

All liens have an expiration date, so in some cases, it’s possible to run out the clock on the lien if you cannot afford to pay back the creditor or taxing authority. For example, a mechanic’s lien only lasts one year in Florida unless the lienor files a lawsuit to enforce the lien before the expiration date.

However, creditors can refile to extend the lien in many cases, so this is not the best method for removing a lien from your property.

Selling your property

You may decide to sell your home to repay the debts you owe and move on with your life. When you take this approach, creditors and taxing authorities will be repaid from your sale profits. You’ll simply have to pay your lien from the profits before the official closing.

Let Meli Help You

Working with Meli is your best option if you’re looking to sell a property with a lien on it near Orlando, FL. Meli specializes in dealing with homes with tax liens and selling homes in as-is condition.

We help homeowners walk away from their legally complicated properties to start fresh by buying your home outright or helping you list and sell. Call or text (407) 305-5008, or fill out our online inquiry form to request a consultation today.

Image Credits

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