Selling a house with code violations, fines or a code lien in Florida and Arizona

How a code case starts

A code case starts when a city or county inspector finds a problem on a property: tall grass, trash, a broken window, a roof leak, an unsafe structure, or work done without a permit. Someone may have reported it, or the inspector saw it on a regular check. The owner gets a notice that names the problem and a date to fix it.

If the problem is fixed by that date and the inspector confirms it, the case can close. If not, it goes to a hearing, where a code board or a hearing officer can order the repair and set a daily fine until it is done. This guide explains what happens next in Florida and Arizona, and how a sale works at each stage. It gives no legal advice, so check your own case with the city and a lawyer.

Florida: what you must tell the buyer

Florida Statutes section 162.06(5) sets the rules for selling during an open code case. Before the sale, the seller must tell the buyer in writing that the case exists and what it is about, give the buyer copies of the notices and other papers the seller received, and state in writing that the new owner will be responsible for meeting the code and the orders in the case.

Within 5 days after the sale, the seller must file a notice with the code official, with the new owner's name and address and copies of what was given to the buyer. If the seller skips the disclosures, the statute says it creates a rebuttable presumption of fraud, and the new owner gets a reasonable time to fix the problem before the hearing. Put all of it in writing and keep copies.

Florida: daily fines and the code lien

Under section 162.09(2)(a), a code board's fine may not exceed $250 a day for a first violation and $500 a day for a repeat, unless a larger city or county sets other limits by ordinance. Fines run each day the house stays out of compliance after the deadline in the order.

Section 162.09(3) says a certified copy of the fine order can be recorded, and once recorded it is a lien against the land where the violation is and against other property the violator owns. After 3 months, the board can ask the local government's lawyer to foreclose the lien or sue for a money judgment. The statute says no code lien may be foreclosed on a homestead, the home where the owner lives.

Florida: asking for a lower fine

Section 162.09(2)(c) says an enforcement board may reduce a fine. Each city has its own process. The City of Tampa has a written policy for settling code liens, the City of Miami holds mitigation hearings once every violation is complied, and the City of Orlando's board considers a reduction of penalty once per case, after the house meets code.

Ask for a reduction before closing if you want one. At closing, the title company pays recorded liens in full from the sale, and once a lien is paid, there is nothing left to reduce.

Arizona: city cleanups and code liens

Arizona cities enforce their own codes. Arizona Revised Statutes section 9-499 lets a city order an owner to remove rubbish, trash, weeds and other hazards. The owner gets written notice and not less than 30 days to comply. If the owner does not, the city can do the work and charge the cost, including inspection costs, to the property.

The city can record that assessment with the county recorder. Section 9-499 says assessments recorded after July 15, 1996 come before other liens except general taxes, and past-due amounts earn interest. The owner can appeal the notice and the assessment. The City of Phoenix Neighborhood Services Department and City of Glendale Code Compliance handle code cases inside each city.

Talk to the inspector before you decide

The notice names an inspector or a case officer. Call that person before you pick a path. Ask which items are still open, what proof of repair they accept, whether a re-inspection is needed, and whether a hearing date is set. Ask whether any fine has started and how much it is today. Write down the date, the name and each answer, and ask for the key points by email.

Some code cases come from work done without a permit, such as a closed-in garage or a new roof. Closing an old permit, or getting a new one for that work, follows its own rules, which the guide on unpermitted work explains for both states.

Work done without a permit, or an open permit →

Selling during an open case: three paths

You can fix the problems, close the case and then sell. You can sell to a buyer who takes over the case and the repairs. Or you can fix part of it and negotiate the rest. The right choice depends on what the repairs cost, how fast the fines grow and how much time you have.

How the title company handles code liens

Before closing, the title company searches the county records for recorded liens, including code liens and city cleanup assessments. It asks the city for a payoff amount, which can include daily fines up to the closing day and interest. At closing it pays each lien from the sale and sends you what is left.

Some fines are not recorded yet. Call the city's code office and ask for every open case and every fine on the address, in writing. Ask the city whether it offers a lien search letter for the address.

Give the title company the case numbers on the first day. A code payoff can change daily while a fine runs, so the title company asks for a figure dated for the closing day, and the closing statement shows each lien by name and amount.

• Every notice and order you have received
• The case numbers and the inspector's name
• Any payoff or lien letter from the city
• Permits pulled for the repairs, open or closed
• Photos of work already done

Selling a house with code problems to BIMINIO

BIMINIO buys houses with open code cases and recorded code liens in Tampa, Miami, Orlando, Lakeland, Phoenix and Glendale, as is. The repairs become ours after closing. In Florida we receive your written disclosure and the case papers, as section 162.06 asks. You get a written cash offer within 24 hours, with the comparable sales we used, and you pick a closing date from 7 to 35 days out. We pay the closing costs. A cash offer is below full market value.

Code violations or liens →