When buying or selling a property, code violations can become a significant concern. Code violations are issues that do not comply with local building, zoning, health and safety or environmental regulations. Addressing these violations is crucial to ensure a smooth real estate transaction and avoid potential legal issues down the road.
Common types of code violations
Code violations can take many forms, including:
- Building code violations: These involve issues related to the structure, electrical systems, plumbing or other aspects of the building that do not meet local building codes.
- Zoning code violations: These occur when a property is used in a way that does not comply with local zoning regulations, such as operating a business in a residential area.
- Health and safety code violations: These include fire hazards, unsafe living conditions or other issues that pose a risk to the health and well-being of occupants.
- Environmental code violations: These involve problems with septic systems, wetland encroachments or other environmental issues that violate local regulations.
Understanding the various types of code violations can help buyers and sellers better address these issues during the real estate transaction process.
Seller’s responsibility for code violations
In most cases, sellers are required to disclose known code violations to potential buyers. Failing to disclose such violations can lead to legal consequences and may allow the buyer to terminate the contract or seek compensation for repairs. In some scenarios, the seller may be required to fix code violations before closing, especially if they pose significant health or safety risks.
Buyer’s responsibility for code violations
Buyers should perform due diligence during the inspection period to identify potential code violations. If violations are discovered, buyers can negotiate with the seller to have them repaired or request a credit at closing to cover the cost of repairs. After closing, the buyer typically assumes responsibility for fixing any remaining code violations.
The role of real estate attorneys in addressing code violations
Real estate lawyers play a vital role in helping buyers and sellers navigate code violation issues. They can advise clients on their rights and obligations, draft and review contract provisions related to code violations, and assist in negotiations between parties to resolve any disputes. An experienced real estate attorney can help protect a client’s interests and minimize potential liabilities.
Addressing code violations in real estate transactions can be complex and stressful. By understanding the responsibilities of buyers and sellers and working with knowledgeable real estate attorneys, parties can effectively resolve code violation issues and achieve a positive outcome. Whether you are buying or selling a property, it is essential to prioritize code compliance to protect your investment and minimize legal risks.