Buying a house is a huge deal! Whether you are looking to purchase the house of your dreams or buying a fixer-upper to make it a dream home, there is so much to look forward to. In either instance, though, there is a threat to be aware of: code violations. Code violations are extremely important in the home buying process, so let’s discuss what you need to know!
Understanding Code Violations
What is considered a real estate code violation in Indiana? These violations are written to highlight and address safety concerns in homes for individuals within a community and promote efficient building practices. Code violations can result in orders to fix a problem, fines, penalties, or even legal action.
Common code violations include:
Improper handrails:
In most cases, handrails going up and down stairs are supposed to connect to the walls at the ends with “returns.”
Presence of harmful materials:
Harmful materials, like lead and asbestos, used to be common building materials. Houses need to be tested for these materials, and if found, removed.
Incorrectly completed electrical work:
Electrical work that isn’t done properly, often by a non-licensed homeowner, is a fire hazard.
Poor yard treatment:
Treating a yard as a junkyard or as a jungle hurts local property values and is a code violation.
It’s important to note that when it comes to certain neighborhood codes, come violations cannot be removed until the work is complete. Therefore, they may stay on your owners policy as an exception to coverage.
Why Do Code Violations Happen?
There are a few common causes behind code violations, but one root you should be aware of is from DIY work. In today’s market, a lot of folks are buying houses, doing some renovations to increase the property’s value, and then sell the home again for a profit. The problem is that sometimes an investor may do the renovations themselves, and subsequently make mistakes that lead to code violations.
Whether you are an investor with the plan to flip a house and re-sell it, or if you are looking for a house just for you and your family, this is something to know and watch out for. Remember, you can always check to see if proper permits were pulled with the county
Why Code Violations Matter
Code violations can have a serious impact on property value, insurance, and legality.
A home not being up to code hurts the property value until the violations are remedied. This means buyers and investors could make an offer far below market value.
As for home insurance, most insurers will not cover code violation fees or costs involved with bringing the home up to code. Insurance rates may also be higher on homes with code violations. Insurers could also refuse to insure a house with severe code violations.
Finally, regarding legal trouble, homeowners will be expected to remedy the violation, and/or pay fines, face penalties, or even jail time.
The problem for folks buying homes with code violations is that, unless an agreement is made with the seller, they are responsible for bringing the house up to code, which can be expensive. Additionally, the new owner will find their new property is on their county’s Code Enforcement Officer’s list, meaning there will likely be more frequent inspections, and potentially more violations.
Steps to Address Code Violations
There is a process if a home inspector finds any code violations. They document the violation, collect evidence, and they should offer a formal notice to the property owner, and potentially to the local health department or code enforcement department.
For neighborhood code violations an expert title company can be helpful. These are professionals who know the law, help with the legal ownership of a property, and can negotiate a closing to benefit their clients.
Conquer the Code with Metropolitan Title
Code violations can put a real wrench in the home buying process. A way to make this process much smoother before closing is to work with inspecting specialists who can help make sure houses meet Indiana’s legal standards before closing. With Metropolitan Title’s services, and experience serving Hoosiers since 1857, we can help you figure out what needs done to remove the codes based on the information provided by your county’s neighborhood code department. Contact us today for guidance on handling code violations.
Identifying Code Violations
How do you spot code violations? Well, as obvious as it may seem, review housing codes in Indiana law, and research common violations. For example, we mentioned before handrails should attach a certain way to the wall, and failure to do so is a common violation in house inspections. Keep an eye out for those common mistakes, and anything that rings in your mind as unsafe.
If you are not a trained professional, though, do not hesitate to refer to professionals and resources available in Indiana. Specialized home inspectors, for example, will be able to go through the house with a fine-tooth comb and note anything that’s awry. This information can be crucial in negotiating, too, as buyers can seek repairs or a better deal if there are violations.
