Can You Sell a House in Dallas With City Code Violations?

What are City Code Violations in Dallas Real Estate?

A city code violation occurs when a property fails to comply with local ordinances and building code standards. Dallas has its own set of local building codes that all property owners must adhere to. If a house were to have a code violation, there could be penalties for failing to rectify the situation. 

Code violations often come up during the selling process. In most cases, professional inspections are not conducted regularly on privately owned properties. Therefore, the existence of code issues may not be apparent until a homeowner considers selling their house. This can create a major obstacle to navigating the sales process successfully. 

Common Types of Building Code Violations Found in Dallas Homes

The list of building codes in Dallas is extremely long, as it is in most municipalities. These ordinances cover a wide range of construction components, including structural, foundational, electrical, plumbing, HVAC, and other standards. Let’s take a closer look at some common code violations homeowners face in Dallas, particularly when preparing to sell their properties. 

Structural and Foundation Building Code Issues

The structural integrity of a home is essential for everyone’s safety. If there are foundation weaknesses or compromised load-bearing elements, the house is likely to be subject to a code violation. For example, if you built an addition without updating the foundation to handle the added load, this could cause major structural issues that lead to a violation. 

Electrical Code Violations and Their Implications

Electrical systems are often sources of major code violations. Outdated wiring, improper installations, and overloaded circuits can be safety concerns that do not meet the standards of Dallas ordinances. Rectifying electrical violations can be complex and costly, especially if the problem affects a significant portion of the house’s electrical system. 

Outdated wiring, for example, would likely require a full system update to avoid code violations during a real estate sale. 

Plumbing, HVAC, and Other Common Code Violation Examples

Other home systems also have specific standards in the Dallas area. Plumbing can have many issues, resulting in homeowners investing in upgrades. However, some plumbing upgrades could violate certain ordinances, such as using improper materials. 

An HVAC installation performed by a homeowner rather than a professional may not meet standards. For example, Dallas Mechanical Code section 603.10 outlines the standards for ventilation duct supports. If you install a duct system yourself and do not use adequate supports, you’ll probably be cited for HVAC violations. 

How to Identify a Potential Code Violation in Your Dallas Property

Identifying building code violations can be tricky. There are several ways to learn about a code violation in your home, such as a notice from the city, issues flagged in a previous sale, or a home inspection report. 

Most homeowners can also identify major code violations due to unsafe conditions or features that are in complete disrepair. 

Dallas Code Enforcement Office and Inspections

The Dallas Code Enforcement Office plays a vital role in ensuring properties in the city are safe. Even minor code violations can put occupants at risk, so this department is responsible for enforcing codes and approving construction projects. 

The local government can assist you in identifying issues through various methods. 

First, you can ask for an official inspection of your property by a local inspector. Second, a city employee could drive past your home and notice the lack of a building permit while a project is ongoing. The department will then contact you to discuss the need for a permit and inspections to ensure the project meets all building standards. 

Here is what the typical process looks like when a violation is cited:

• The Code Enforcement Office identifies the violation through reports, complaints, or inspections
• The department issues a letter to the property owner about the issue with a timeframe to address it, which is typically ten days
• If the owner does not fix the issue in time, the city can take action and charge the owner or issue a citation that leads to penalties or court action
• The property owner can be fined anywhere from $50 to $2,000, depending on the infraction, plus other potential penalties

Challenges of Selling Traditionally with Code Violations

Selling a house with some of the most common violations will not be easy, and the more severe the violations are, the more stressful it will be. A traditional real estate sale will come with many complicating factors if you decide to forego any attempts to rectify the violations. 

Let’s discuss some of the primary obstacles you will face when selling a home that does not meet all code requirements. 

Texas Disclosure Requirements for a Code Violation

In Texas, sellers are legally obligated to disclose known material defects to potential buyers. A code violation would certainly be classified as a known material defect. Therefore, you must include information about the issues in the seller’s disclosure notice, a legal document that is part of a real estate transaction. 

This legal paperwork is designed to ensure compliance between the seller and buyer in the event that the home has uncorrected code violations. 

Impact of Violations on Attracting Buyers and Receiving Offers

Code violations will greatly influence the outcome of your sale. Since you must disclose them, some potential buyers will not find your property appealing. As a result, fewer prospective buyers will be interested in purchasing your home. At the very least, you will have to ask for a lower price to invite more offers. 

The chances of keeping a higher sale price with known code violations are extremely low. If you do not disclose the issues to potential buyers in order to obtain a better deal, you may face lawsuits or costly fines. 

Lender Issues: Financing a House with Code Violations

Even if you find potential buyers who are willing to take on electrical code violations or other issues when they buy the home, a lender could also cause the sale to fall through. Mortgage lenders give out loans based on risk assessments, and a home featuring multiple violations of local codes has serious financial implications. 

Therefore, the buyer may not even secure adequate financing for the sale because of the lender’s appraisal or home inspection. 

Repair to Meet Code Requirements or Sell As-Is?

If your home is in violation of local building codes, but you still want to sell it, you have two options. 

First, you can invest in repairs to address those specific building codes. Whether you have outdated electrical systems, structural violations, or HVAC violations, they must be addressed promptly with significant upfront investment. Otherwise, they must be mentioned in the mandatory disclosure notice. 

Although you can put the home on the market for a better selling price, the money and time you spent on the project may not be worth it. It can also be stressful bringing a house up to specific building codes, even if you hire licensed contractors to do the work. As a result, an alternative solution may be better suited to your individual circumstances. 

The Cash Buyer Solution for Your Dallas House with a Code Violation

Your best option for selling a house with code violations in Dallas is to seek a motivated cash buyer. The right real estate investor may be willing to purchase your property as is, even if there are unaddressed code violations. 

A-List Properties is a Texas-based home buyer that can offer cash for your property, regardless of its condition. Our team has experience buying houses that violate local codes and struggle to be sold on the traditional real estate market. This is a straightforward and effective solution for selling your home in disrepair, particularly if you want a fast and guaranteed sale.   

How a Cash Buyer Handles Properties with Existing Code Violation Issues

A reputable real estate investor, such as A-List Properties, possesses the necessary experience to evaluate and purchase a home with code violations. We buy houses in Dallas and are prepared to rectify these issues once we own the property so that you can avoid all the stress of the repair process. 

Benefits of Choosing a Cash Buyer for Your Dallas Property with Violations

If selling your house the traditional way in the Dallas real estate market is not the right solution, our team offers significant advantages with a cash offer. First, you can avoid the repair costs and time commitment of home renovations. Second, you can sell the home quickly in 14 days or less without financing delays. 

You can also bypass lender requirements, as we will happily take the property off your hands, regardless of the level of structural violations or other concerns. As a result, you can sell your house with minimal hassle, all while saving money on real estate professional commissions and closing costs. 

FAQs: Selling a Dallas House With Building Code Violations

Can I Legally Sell a House With Known Code Violations in Dallas?

You can sell a house with code violations in Dallas, but you must disclose the issues to potential buyers as part of the legal requirements for a sale. Failing to include these violations in the seller’s disclosure notice could result in significant legal problems. 

Will I Get Significantly Less From a Cash Buyer if My House Has a Code Violation?

Cash buyers will make fair offers based on your home’s market value, condition, and location. This means the existing code violations will affect the final price, but few potential buyers will be willing to make any offer at all in this scenario. Our team will create a fair valuation of your property and make a good-faith offer, even if the violations are substantial. 

How Does the Dallas Code Enforcement Office Get Involved if I Sell With Violations?

Either you will have to rectify the violations before the sale, or the buyer will assume that burden after the transaction, provided both parties are aware of the issues. The Code Enforcement Office could send a violation notice with a short deadline, which would make a cash offer the only option for selling without significant financial considerations.

Get a Fair Offer for Your Dallas House With Code Violations

Dallas homeowners facing code violations may encounter a complex sales process on the open market. Rather than investing in repairs or dealing with unwilling buyers, you can sell quickly to A-List Properties for a fair cash offer. Contact us today at 972-526-7042 or complete the online form to request a no-obligation quote.