Sell a House With Code Violations or Fire or Water Damage

This page is general information about New York, not legal, tax or financial advice. Laws and local rules change, and every situation is different. Talk with a New York attorney, tax professional or HUD-approved housing counselor about your own circumstances.

Code violations and unpermitted work

In New York, local building departments enforce the state’s Uniform Fire Prevention and Building Code. Problems that commonly come up when a house is sold include:

• Open violations from the building department or fire marshal.
• Open or expired building permits that were never closed out.
• Work done without permits, such as finished basements, decks, additions or extra apartments.
• A missing or outdated certificate of occupancy for the way the house is actually used.

Before closing, the title company typically runs a municipal search that can turn these up. With a financed buyer, open issues often have to be fixed or the deal can fall through. Some cities also have rental registration or inspection programs that add requirements for rental properties.

Fire damage

After a fire, the property may be boarded up, the utilities shut off, and the building department may restrict who can enter. If you have insurance, your claim and the mortgage company usually both play a part, and insurance checks are often made out to both you and your lender. Talk with your adjuster or a public adjuster about how a sale affects your claim before you sign anything. We can buy before or after the claim is settled.

Water damage and mold

Burst pipes in a cold or vacant house, roof leaks, sewer backups and flooding can cause damage that spreads quickly. If mold follows, New York requires licensed professionals for mold assessment and remediation on projects over 10 square feet. Since 2024, New York’s property disclosure form also asks sellers about flood history and flood insurance.

How a cash sale helps

We buy houses with open violations, unpermitted work and fire or water damage in their current condition. We take on the permits, repairs and inspections after closing, and our offer accounts for that work. Fines or charges that have become liens are typically paid from the proceeds at closing.