Selling a House With Code Violations or Unpermitted Work in Palm Beach County

Selling a house with code violations is common in Palm Beach County, where many homes have decades of additions, enclosed porches and repairs done without a permit. The problems usually surface late, when the buyer's title company runs a search a few weeks before closing. By then, a missing permit or a recorded fine can delay the deal or end it. This guide shows how to find these issues early, how to clear them, and when selling as is makes more sense.

Key takeaways

• Open permits, unpermitted work and code enforcement liens are three different problems, and each one is fixed a different way.
• Under Florida law, a code board can record its fine order, and it then becomes a lien on the land. Daily fines can reach $250 for a first violation and $500 for a repeat one, and higher where local rules allow.
• Palm Beach County charges $63 for a fine and lien search or an open permit search, and $50 for an open code violation search, for unincorporated areas.
• Since 2019, Florida law lets a local building office close a permit 6 years after it was issued if no safety hazard exists.
• Order your own searches before you list, so the buyer's title company does not find the problem first.

Selling a house with code violations: know which problem you have

Sellers often lump these issues together, but they are not the same. Each one has its own fix and its own effect on a buyer.

• Open or expired permits. Someone pulled a permit, but the work never passed final inspection.
• Unpermitted work. Work was done with no permit at all, such as a garage turned into a bedroom.
• Open code cases. The city or county cited the property for a problem, such as an overgrown yard, a broken fence or an illegal unit.
• Code enforcement liens. A fine order was recorded against the property after a case went unresolved.

A home can have more than one of these at once. So start by finding out exactly what is on record.

How code fines become liens in Florida

Florida's code enforcement law is Chapter 162 of the Florida Statutes. Under section 162.09, a code board can fine an owner who does not fix a violation in time. Fines may not exceed $250 per day for a first violation and $500 per day for a repeat violation. Larger counties and cities can adopt higher limits, up to $1,000 per day for a first violation and $5,000 per day for a repeat one.

Once the board records a certified copy of its fine order, the order becomes a lien against the land. Because fines can run daily, an old case can grow into a large number. However, the board may reduce a fine, and many local governments have a process for asking. The statute also bars foreclosure of these liens on a homestead property, though the lien still has to be dealt with before a sale.

How to search for permits, cases and liens

The first step is to find out what is on record. Where you look depends on whether your home sits in a city or in unincorporated Palm Beach County.

Unincorporated Palm Beach County

The county's Planning, Zoning and Building Department offers search services for unincorporated areas. A fine and lien search costs $63, an open building permit search costs $63, and an open code violation search costs $50. Rush service within 3 business days costs $94, $94 and $75. Otherwise, results come back in 7 to 10 business days after payment. All fees are nonrefundable.

Note that these county searches do not cover fines, liens or services from a city. So if your home is inside a city, you need the city's records too.

Homes inside a city

Each city in the county runs its own building department and code enforcement office. For example, a home in West Palm Beach, Lake Worth Beach or Riviera Beach falls under that city's rules. Contact the city's building and code offices and ask for an open permit search and a code lien search. Most cities offer these for a fee.

Timing matters too. Order these searches 30 to 60 days before you plan to list, so you have time to act on what they show. That window lets you schedule inspections, collect contractor bids and request fine reductions without a buyer waiting. It also lets your agent price the home with the full picture in mind, rather than guessing.

In addition, check the Palm Beach County Clerk's official records for any recorded liens against your name or property. Your title company can also order a municipal lien search as part of the closing.

Clearing open and expired permits before selling a house with code violations

Open permits are often the easiest problem to fix. In many cases the work was done well, but no one called for the final inspection. Florida made this simpler in 2019. Under changes to section 553.79 of the Florida Statutes, the owner can close a permit using the original contractor. The owner can also hire a different contractor, and that new contractor is not liable for defects in the first contractor's work.

The same law lets the local building office close a permit 6 years after it was issued without a final inspection, as long as it finds no safety hazard. It also stops local agencies from penalizing an arm's length buyer just because a past owner left a permit open. Florida Realtors noted at the time that open permits can delay closings or stop a purchase.

Steps to close a permit

1. Pull the permit record and see which inspections are missing.
2. Call the contractor listed on the permit, or hire a licensed contractor to take it over.
3. Schedule the missing inspections and fix anything the inspector flags.
4. Get written proof that the permit is closed, and keep it for your buyer.

Fixing unpermitted work before selling a house with code violations

Unpermitted work is harder. The usual fix is an after-the-fact permit. A contractor or design professional draws up the work, the building office reviews it, and an inspector checks it. Sometimes walls or ceilings must be opened so the inspector can see wiring or framing. If the work does not meet code, it has to be brought up to code or removed.

Cost and time vary a lot from one city to the next and from one project to another. So get an estimate from a licensed contractor before you decide. For a small item, the after-the-fact permit is often worth it. For a large addition, removing it or selling as is may cost less.

Resolving open code cases and liens

With an open case, the path is simple: fix the violation and ask for a re-inspection. Once the case is in compliance, request written proof that it is closed.

For a recorded lien, first get a payoff amount from the city or county. Next, ask whether the government has a fine reduction or lien mitigation process. Many do, especially once the violation is fixed. Then pay the agreed amount and get a recorded release of lien. Your title company will need that release before closing. In most sales, the payoff comes out of your proceeds at closing.

Disclosure when selling a house with code violations

Florida sellers must disclose known facts that materially affect a home's value and are not easy for a buyer to see. That duty applies to known code violations and unpermitted work too. Hiding them can lead to a lawsuit after closing. Our post on the Florida seller disclosure form explains what to include.

Disclosure also helps the sale. A buyer who learns about a problem up front can price it in. In contrast, a buyer who finds it late often feels misled and walks.

How code violations affect financing when selling a house

Lenders and appraisers look at a home's legal use and condition. An unpermitted bedroom may not count toward the home's value. A safety problem, such as exposed wiring, can stop a loan until it is fixed. Insurers may also ask about roof age and permits. As a result, homes with open issues often draw fewer financed buyers and more cash offers.

That is why it often pays to clear the problems first. A clean record lets you market to every buyer, not just investors.

When selling as is makes sense

Some fixes cost more than they return. If the work needed is large, or you need to sell soon, an as is sale to a cash buyer may be the better choice. Even then, run the searches first. Knowing the payoff on a lien and the scope of the work helps you judge whether an investor's discount is fair.

Frequently asked questions

Can you sell a house with code violations in Florida?

Yes. You can sell with open issues if you disclose them and the buyer agrees. However, recorded liens usually must be paid or released at closing, and some buyers' lenders will not fund until problems are fixed.

Who pays code enforcement liens when a house sells?

Usually the seller, out of the sale proceeds at closing. The contract can say otherwise, so read it with your agent.

Do open permits transfer to the new owner?

The permit stays with the property. Florida law stops local agencies from penalizing an arm's length buyer only because a past owner left a permit open. Still, most buyers and title companies want permits closed first.

How long does a lien search take in Palm Beach County?

For unincorporated areas, the county returns results in 7 to 10 business days after payment, or within 3 business days with rush service. City searches have their own timelines.

Sources

• Florida Statutes, s. 162.09 administrative fines and liens
• Florida Statutes, s. 553.79 permits
• Florida Realtors, open permits bill signed (2019)
• Florida Senate, HB 447 (2019) bill summary
• Palm Beach County PZB, fine, lien, permit and violation searches

Have open permits or code issues? Compare a cash offer vs. listing with a Pure Equity agent, with no obligation. We will help you see what the home is worth today, what clearing the issues might add, and which path nets you more. Start with a free home valuation. Buyers can also lean on our agents to spot permit problems before they make an offer. Talk with our team.