Sell a House With Code Violations or Unpermitted Work in Arizona

What this means in practice

A notice from the city taped to the door is hard to ignore. Maybe it is about weeds, junk in the yard, a fence, or a building that inspectors call unsafe. Maybe there is no notice at all, but you know the garage conversion or back room was built without a permit and you worry it will sink a sale. You can sell a house in Arizona with an open code case or unpermitted work. The case and any lien do not go away on their own, though, so someone has to deal with them: you before the sale, or the buyer after. We buy Arizona houses as-is for cash, including houses with open code cases, city liens and additions that were never permitted. Our offer will be below open-market price. This page explains how code enforcement works, what a lender does with unpermitted work, and when fixing it yourself is the better move.

When this path makes sense

• You received a notice of violation and cannot afford the fix
• The city did the cleanup and recorded a lien for the cost
• A room, garage conversion or patio enclosure was built without a permit
• A buyer's lender or appraiser balked at unpermitted square footage
• You inherited a house with an open code case
• A tenant or past owner caused the violation and you are stuck with it
• The house is vacant and notices keep coming
• You have a court date and want the property sold

How the process goes

1. Tell us about the notice or the work. Call (928) 928-4109 or use the form. Send us the notice if you have it, with the case number and deadline. For unpermitted work, tell us what was built, about when, and who built it.
2. We check the case and walk the house. We look up the case status with the city or county and see the property once. You do not need to clean up or correct anything first. We want to see it as it is.
3. You get a written cash offer. The offer accounts for the cost to cure the violation or to permit or remove the work. We tell you how the case and any lien affect the number. There is no fee and no obligation.
4. Close through an Arizona title company. Escrow opens with a standard Arizona title and escrow company. Recorded liens are paid from the sale at closing. A typical closing is 7 to 21 days once title is clear, or we match your date.

What it costs

You pay no commission and we pay the normal closing costs. You do not pay for permits, engineering, demolition or cleanup, because we buy the house as it sits and take over the problem. Recorded city liens, like a mortgage or back taxes, are paid out of your sale proceeds at closing. Court fines that are owed by you personally may still be yours to resolve, so ask the court or an attorney. The trade is price. Our cash offer is below what a clean, permitted house would bring on the open market, because we take on the cost and the risk of fixing the violation. If the fix is cheap, such as hauling debris or trimming a yard, do it and list the house. You will likely come out ahead.

How this stacks up against the alternatives

Fix it, then list. For yard, trash, fence and paint violations this is almost always the best choice. The fix is cheap, the case closes, and you sell at full market price with an agent. Do this if you can. Permit the work, then list. Getting an after-the-fact permit can add real value because the square footage becomes legal. It can also mean opening walls for inspection, drawings, and upgrades to meet current code. It makes sense when the work was built well and you have time and cash. List as-is with the problem disclosed. This can work, but financed buyers often struggle. An appraiser may give little or no value to an unpermitted addition, and a lender may not want to fund a loan on a house with an open case or a safety issue. Expect investors and cash buyers to be most of your audience. Sell to us as-is. You skip the repairs, the permit counter and the court dates that come with a long fix. You get a lower price than a cured, listed house would bring. This fits when the fix is expensive or unclear, when the house is vacant or inherited, or when a deadline is close. If a city lien is part of the picture, see /situations/liens/. For a vacant property, see /situations/vacant-house/.

Questions we get

Sources: City of Phoenix Neighborhood Services: Code Compliance · City of Phoenix Neighborhood Services: Code Enforcement · A.R.S. § 9-499 (removal of rubbish and dilapidated buildings; assessment and lien) · City of Phoenix Planning & Development: Non-Permitted Construction Fee Waiver/Reduction Procedure · Arizona REALTORS Residential Seller's Property Disclosure Statement (SPDS) · Hill v. Jones, 151 Ariz. 81, 725 P.2d 1115 (Ariz. App. 1986)

If it's the right fit

If a code case or unpermitted work is standing between you and a sale, call (928) 928-4109, Monday through Saturday, 8am to 8pm Arizona time, or use the form below. We will look at the case and give you a plain number. This is general information, not legal or tax advice. Talk to an Arizona attorney or CPA about your situation.