How to Manage Code Enforcement Violations and Liens in Chattanooga – And Successfully Sell Your Property

If you’ve ever faced a code enforcement violation or a lien on your property, you might be wondering what to do next. Code violations can complicate your ability to sell or refinance, but there are ways to handle them. This guide will walk you through everything you need to know about code enforcement violations and liens, including steps to sell your property even with a lien in place.

What is a Code Enforcement Violation, and When Does it Become a Lien?

A code enforcement violation occurs when a property owner does not follow local laws, often relating to building, zoning, health, or safety standards. Common types of code violations include:

1. Building Code Violations: Issues like unauthorized construction, unsafe structures, or unpermitted renovations.
2. Zoning Violations: Misusing property, such as running a business in a residential area.
3. Health and Safety Violations: Problems like poor sanitation or hazardous materials.
4. Property Maintenance Violations: Issues such as overgrown vegetation, debris, graffiti, or dilapidated buildings.
5. Housing Code Violations: Inadequate heating, plumbing, or electrical systems in rental properties.
6. Noise Violations: Excessive noise disrupting the neighborhood.

Property owners typically receive a notice to correct the issue within a specified timeframe. If they fail to comply, they may face fines, penalties, and eventually, a lien on the property. This lien acts as a legal claim against the property for unpaid fines and other enforcement costs.

How Does a Code Violation Turn into a Lien?

If a property owner fails to address the violation, the following steps usually occur:

1. Notice of Violation: The property owner receives a notice outlining the violation and necessary actions to fix it.
2. Compliance Period: Owners are given 30 to 60 days to address the issue.
3. Reinspection: After the compliance period, officials recheck the property.
4. Fines and Penalties: Non-compliance may lead to daily or weekly fines.
5. Administrative Hearing: If the violation is ignored, it can escalate to a hearing or court.
6. Lien Placement: Unpaid fines can result in a lien.
7. Notice of Lien: The lien is officially recorded, and a notice is sent to the owner.
8. Lien Enforcement: The lien can prevent the sale or refinancing of the property. Unpaid liens may lead to foreclosure in some cases.

Steps to Resolve a Code Enforcement Violation

If you have a code violation, here are steps to address it:

1. Review the Notice: Read the violation notice carefully to understand the issues, deadlines, and any associated fines.
2. Contact the Enforcement Agency: Reach out to the agency to clarify details or ask questions.
3. Understand Your Options: Determine necessary repairs, permits, or changes required to comply. Consulting with a real estate attorney can be helpful, especially if the lien is significant.
4. Create an Action Plan: Plan for repairs, hire contractors if needed, and adhere to local regulations.
5. Document Everything: Keep detailed records of repairs, receipts, photos, and communication with contractors or the enforcement agency.
6. Request Reinspection: After resolving the violation, ask the agency for a reinspection to confirm compliance.
7. Appeal if Necessary: If you disagree with the violation, check for options to appeal.
8. Pay Fines Promptly: Avoid further penalties by paying any associated fines or fees on time.

Selling Your Property with a Code Violation or Lien

If a lien has been placed on your property, it can still be sold. Here’s how to navigate the process:

1. Disclose the Lien: Be transparent with buyers about any liens on the property to avoid legal issues.
2. Determine the Lien Payoff Amount: Contact the lender or enforcement agency for the exact amount needed to clear the lien.
3. Negotiate the Lien Amount: In some cases, you may negotiate a reduced payment amount.
4. Discuss Options with the Buyer: You could adjust the sale price or agree to pay off the lien from the sale proceeds.
5. Work with a Title Company or Real Estate Attorney: They can ensure the lien is addressed correctly and all paperwork is handled during the transaction.
6. Include the Lien in the Sales Agreement: Clearly outline how the lien will be paid off in the sales contract.
7. Close the Sale: During closing, the title company or attorney will pay off the lien from the sale proceeds.
8. Obtain Proof of Lien Release: After payment, get documentation proving the lien has been cleared.
9. Transfer Ownership: Once the lien is removed, the sale can be completed, and ownership transferred.

Tips for Preventing Future Code Violations and Liens

Staying informed about local building codes and zoning regulations is crucial for property owners. Regularly maintaining your property and addressing minor issues early on can prevent violations from escalating into liens.

If you need financial assistance for repairs, consider options like personal loans. Resolving a lien promptly can help protect your credit and improve your eligibility for future loans.

By following these steps, you can handle code enforcement violations effectively and, if needed, sell your property to a cash buyer—even with a lien in place. For additional insights or questions, feel free to reach out for expert advice on navigating the selling process.

If you’re ready to sell your home fast and for cash, connect with us at Cash Out On My Home. Visit our website or contact us to get started!