The letter from Los Angeles City Building & Safety Department lands in your mailbox. Your heart sinks as you read: “Notice of Code Violation” in bold red letters. Unpermitted addition. Illegal garage conversion. Outdated electrical. You have 30 days to comply or face fines starting at $250 per day.
You don’t have $40,000 to bring everything to code. You can’t sell the house with violations because no lender will finance it. You’re stuck between mounting fines and impossible repair costs.
Or are you?
Urban Street Ventures purchases houses and apartments with code violations throughout LA, Orange, Riverside, San Bernardino, Ventura, and San Diego counties. We buy as-is—you don’t fix anything, you don’t pay fines, you don’t deal with city inspectors. We handle all violations after closing.
The Most Common Property Code Violations in Southern California
Unpermitted Additions and Conversions:
The previous owner added a bedroom without permits. Or converted the garage into living space. Or enclosed the patio. Or finished the basement. These are the violations that plague thousands of Southern California properties, especially in older neighborhoods throughout Los Angeles, Orange County, and the Inland Empire.
Cities like LA, Long Beach, Santa Ana, Riverside, and San Bernardino are cracking down. When you try to sell, title companies discover unpermitted work during their searches. Suddenly your buyer’s lender refuses to finance the purchase. Your sale falls through.
Illegal Unit Conversions:
Single-family homes illegally converted to duplexes or triplexes are common in LA County high-density areas. You’re collecting rent from multiple units, but the property is only zoned for single-family. Code enforcement finds out—maybe through a complaint, maybe during a routine inspection—and now you’re facing not just violation notices but potential habitability issues and tenant problems.
REAP and SCEP Programs (Los Angeles):
LA’s Rent Escrow Account Program (REAP) and Systematic Code Enforcement Program (SCEP) target landlords with habitability violations. If your apartment building is on these lists, you can’t collect rent until violations are corrected. Meanwhile, property taxes, mortgages, and maintenance costs continue.
Electrical Violations:
Outdated wiring, insufficient electrical panels, aluminum wiring, knob-and-tube systems still in use. Modern appliances and electronics overload old systems. Code enforcement red-tags properties during inspections when they discover dangerous electrical work.
Plumbing Violations:
Cast iron pipes corroding away. Galvanized plumbing past its lifespan. Illegal plumbing connections. Sewer line problems. Water heaters not to code. Plumbing violations often discovered during property sales when inspectors investigate.
Zoning Violations:
You’re operating a business from your residential property. Or running short-term rentals in areas where they’re prohibited. Or have RV parking where it’s not allowed. Or you’ve exceeded density limits. Neighbors complain, city investigates, violation notices arrive.
Structural Issues:
Foundation problems, load-bearing walls removed without permits, roof structural damage, deck or balcony safety issues. Cities like Irvine, Pasadena, and Santa Monica have strict structural requirements. Violators face expensive engineering reports and repairs.
Habitability Violations:
Broken windows, non-functioning heating/cooling, mold problems, pest infestations, inadequate ventilation. These violations affect apartments and rental houses more commonly than owner-occupied properties. Similar to water and mold damage issues, habitability violations make properties unsellable through traditional channels.
Why Traditional Buyers Won’t Touch Properties with Violations
Lenders refuse to finance:
Banks and mortgage companies won’t provide loans on properties with active code violations or unpermitted work. No financing means no traditional buyers—which eliminates 90% of the buyer pool in Southern California.
Title companies flag violations:
During title searches, companies discover recorded violations, liens, and notices. They refuse to insure title until violations are resolved, preventing escrow from closing.
Appraisers note violations:
Even if violations aren’t officially recorded, appraisers spot unpermitted work during property evaluations. They note it in reports, triggering lender denials.
Buyers fear liability:
Sophisticated buyers research properties. When they discover violations, they worry about inheriting problems, ongoing fines, and expensive correction costs.
The Cost of Bringing Properties to Code in Southern California
Unpermitted Addition (500 sq ft):
- Retroactive permit fees: $8,000-$15,000
- Engineering reports: $3,000-$7,000
- Required upgrades to current code: $15,000-$40,000
- Inspector fees and plan checks: $2,000-$5,000
- Total: $28,000-$67,000
Illegal Garage Conversion Reversal:
- Demolition and restoration: $12,000-$25,000
- Garage door replacement: $2,000-$4,000
- Electrical restoration: $3,000-$8,000
- Concrete and driveway work: $4,000-$10,000
- Total: $21,000-$47,000
REAP Program Compliance (LA Apartment Building):
- Inspection fees: $2,500-$8,000
- Required repairs (varies greatly): $15,000-$100,000+
- Permit fees: $5,000-$20,000
- Lost rent during repairs: $10,000-$50,000+
- Total: $32,500-$178,000+
Electrical System Upgrade to Code:
- Main panel upgrade: $3,000-$8,000
- Full house rewiring: $8,000-$25,000
- GFCI and AFCI outlets throughout: $2,000-$5,000
- Permits and inspections: $1,500-$3,000
- Total: $14,500-$41,000
These costs devastate homeowners who can’t afford tens of thousands in immediate expenses.
How Cities Enforce Violations in Southern California
Notice of Violation (NOV):
First warning. City gives you 30-90 days to correct violations. Ignoring this leads to escalating enforcement.
Administrative Citations:
$250-$1,000+ per day fines accumulate until violations are corrected. In cities like LA, Long Beach, and Santa Ana, fines reach $100,000+ on ignored violations.
Stop Work Orders:
If you’re actively working without permits, cities post stop work orders. Continuing work results in criminal charges and increased fines.
Red Tags and Yellow Tags:
Buildings deemed unsafe get red-tagged (unsafe to occupy) or yellow-tagged (limited occupancy). You must vacate immediately. Common in LA and Orange County for severe structural, electrical, or fire safety violations.
Criminal Charges:
Serious violations or repeated ignoring of notices leads to misdemeanor charges. Property owners face court appearances, criminal fines, and even jail time in extreme cases.
Foreclosure and Liens:
Unpaid fines become liens on your property. Cities can eventually foreclose to collect, forcing sales at auction and wiping out your equity.
Southern California Cities with Aggressive Code Enforcement
Los Angeles:
Strictest enforcement in Southern California. REAP and SCEP programs target rental properties aggressively. Habitability complaints trigger immediate investigations. Unpermitted work discovered during any city interaction leads to violation notices.
Long Beach:
Active code enforcement department. Neighbor complaints investigated within days. Rental properties face frequent inspections. Unpermitted ADUs (accessory dwelling units) major target.
Santa Ana:
Orange County’s most aggressive enforcement. Regular inspections of rental properties. Unpermitted conversions heavily fined. Business code violations pursued.
Riverside:
Inland Empire leader in code enforcement. Illegal additions and garage conversions discovered through aerial photography and property records review. Systematic neighborhood sweeps.
San Diego:
Short-term rental violations pursued aggressively. Unpermitted work in coastal areas heavily scrutinized. Environmental code violations in canyons and hillside properties.
Pasadena:
Historic district regulations add complexity. Unpermitted modifications to historic homes face double scrutiny. Strict architectural review requirements.
Selling a Property with Violations: Your Options
Option 1: Fix All Violations
Pros:
- Property becomes fully marketable
- Access to all buyers and financing
- Potentially higher sale price
Cons:
- $20,000-$100,000+ in costs
- 6-12 months navigating permits and inspections
- No guarantee of city approval
- May discover additional violations during correction process
- Fines continue accumulating during repairs
Option 2: Sell “As-Is” to Cash Buyer
Pros:
- Zero repair costs
- No dealing with city inspectors
- Close in 14-21 days throughout Southern California
- Buyer handles all violations after closing
- Fines stop accumulating once sold
- Avoid continued stress and liability
Cons:
- Lower sale price than if violations were corrected
- Must accept discounted offer reflecting violation costs
Option 3: Disclose and Hope
Pros:
- Avoids fraud charges
- Legally compliant disclosure
Cons:
- 95%+ of buyers walk away once violations disclosed
- Deal falls through after weeks in escrow
- Wasted time while fines accumulate
- Multiple failed transactions damage negotiating position
How Urban Street Ventures Handles Properties with Violations
We’re Licensed and Experienced:
Thirty years purchasing Southern California properties with every imaginable violation. We know city code requirements in LA, Orange, Riverside, San Bernardino, Ventura, and San Diego counties. We have relationships with city officials and understand local enforcement patterns.
In-House Construction and Permitting:
Our construction teams handle violation corrections after purchasing. We employ licensed contractors, electricians, plumbers, and engineers who pull permits and work with city inspectors. No need for you to manage any of this.
We Assume All Liability:
Once escrow closes, all violations become our responsibility. Fines, citations, correction costs—everything transfers to us. You walk away clean.
Fair Offers Accounting for Violation Costs:
We calculate:
- Cost to correct violations to code
- Permit and inspection fees
- Engineering reports and surveys if needed
- Accumulated fines and liens
- Time and holding costs during correction
We subtract these from the property’s corrected value and make fair offers. Everything transparent—we explain our calculation.
Fast Closings:
Most violation-plagued property owners need quick resolution. We close in 14-21 days standard, stopping fines from accumulating further.
Real Examples: Violation Properties We’ve Purchased
Los Angeles Duplex – Illegal Conversion:
Property zoned single-family but converted to duplex without permits. Owner collected rent from both units for years. Neighbor complaint triggered investigation. City issued NOV requiring conversion back to single-family or obtaining retroactive permits (nearly impossible). Owner facing $500/day fines.
Our solution: Purchased as-is. Worked with LA Building & Safety Department. Obtained variance and retroactive permits over 8 months. Property now legally duplex. Owner received cash and avoided $120,000+ in fines and correction costs.
Orange County House – Unpermitted Addition:
1,200 sq ft addition built in 1998 without permits. Owner tried selling traditionally. Buyer’s lender discovered unpermitted work and denied financing. Deal fell through. Second buyer, same result. Property sat unsold for 8 months.
Our solution: Cash offer within 24 hours. Closed in 16 days. Hired structural engineers, obtained retroactive permits, brought addition to current code. Owner received $680,000 cash instead of watching property deteriorate while unable to sell.
Riverside Apartment Building – REAP Equivalent:
12-unit building with habitability violations. Multiple tenant complaints. Building placed on Riverside’s systematic enforcement list. Owner couldn’t collect rent, couldn’t afford $85,000 in required repairs, behind on mortgage payments.
Our solution: Purchased building, paid off mortgage, completed all required repairs, cleared violations, restored to habitability. Owner avoided foreclosure and bankruptcy.
San Diego House – Electrical and Structural:
House red-tagged after kitchen fire damage revealed extensive unpermitted electrical work and structural modifications. City required full electrical system replacement and structural engineering reports before occupancy allowed.
Our solution: Bought red-tagged property as-is. Handled all city requirements. Completed electrical and structural work. Re-inspected and cleared for occupancy. Owner received $525,000 cash for property they thought was worthless.
Specific Violations We Handle Throughout Southern California
Properties We Buy With Violations:
- Unpermitted additions, rooms, garages, decks
- Illegal garage or ADU conversions
- Zoning violations and non-conforming uses
- Electrical code violations and outdated wiring
- Plumbing violations and sewer line issues
- Structural modifications without permits
- REAP and SCEP properties in LA
- Habitability violation properties
- Red-tagged and yellow-tagged buildings
- Properties with active stop work orders
- Properties with outstanding citation fines
- Illegal multi-unit conversions
- Commercial use in residential zones
- Unpermitted pools, spas, patios
- Roofing and foundation violations
Property Types:
- Single-family houses
- Condos and townhomes
- Duplex, triplex, fourplex
- Apartment buildings (all sizes)
- Mixed-use properties
- Investment properties
- Owner-occupied homes
Learn more about the types of properties we buy.
The Legal Requirement to Disclose Violations
California Law Requires Disclosure:
You must disclose known violations on the Transfer Disclosure Statement (TDS) and Seller Property Questionnaire (SPQ). Hiding violations is fraud—buyers can sue you years after closing if they discover undisclosed issues.
What Happens If You Hide Violations:
- Lawsuits for fraud and misrepresentation
- You pay buyer’s correction costs plus attorney fees
- Rescission of sale (undo the transaction)
- Criminal fraud charges in severe cases
Better Approach: Sell As-Is to Cash Buyer
Cash buyers expect problems. We conduct due diligence, research property history, inspect thoroughly. Violations don’t scare us—they’re part of what we do. Disclose everything to us, we account for it in our offer, and you’re legally protected.
Timeline: Selling With Violations to Urban Street Ventures
Day 1: Contact us about your property. Mention known violations—unpermitted work, citation notices, REAP status, whatever applies.
Day 1-2: We research property records, review violation notices you provide, assess correction costs.
Day 2-3: We inspect your property. Our contractor evaluates violations and calculates realistic correction costs.
Day 3: We present written cash offer explaining our calculation: after-repair value minus violation correction costs, permits, fines, and our profit margin.
Day 4-7: If you accept, we open escrow. We work with title company to handle any recorded violations or liens.
Day 14-21: Escrow closes. You receive cash. Violations transfer to us. You’re released from all liability.
After Closing: We handle city negotiations, pull permits, complete corrections, pass inspections. Your involvement: zero.
Frequently Asked Questions
Q: Will I get sued if I sell a property with violations without fixing them?
Not if you disclose everything. Cash buyers like Urban Street Ventures conduct thorough due diligence and assume all liability for violations. Traditional buyers who discover hidden violations can sue—another reason selling to cash buyers makes sense.
Q: Can I sell if my property is red-tagged?
Yes. Red-tagged properties are among the most difficult to sell, but cash buyers purchase them regularly throughout Orange County, LA, and other Southern California areas. We handle the violation correction and re-inspection process.
Q: What if I can’t find my violation notices?
We research property records with the city. Code violations are typically recorded with county recorders or maintained in city building department files. We’ll track down the documentation.
Q: Will my neighbors find out I’m selling?
Cash sales don’t require MLS listings or yard signs. The transaction stays private. Only public record at closing shows the sale, like any property transfer.
Q: How much less will I get selling with violations?
Typically 15-30% below corrected value, depending on violation severity and correction costs. But compare that to spending $50,000+ out of pocket, waiting 8-12 months, and still netting less after commissions and repairs.
Q: What if new violations are discovered during correction?
That’s our problem, not yours. Once we own the property, any additional violations discovered become our responsibility. You’re fully released.
Q: Can you buy apartment buildings with violations?
Absolutely. We purchase violation-plagued apartment buildings throughout Southern California regularly. REAP properties, SCEP properties, habitability violations, unpermitted units—we handle them all.
Why Time Matters With Code Violations
Fines Accumulate Daily:
$250-$1,000 per day adds up fast. A 90-day delay costs $22,500-$90,000 in additional fines.
Criminal Charges Escalate:
Ignoring violations long enough leads to criminal misdemeanor charges. Avoid this by selling quickly.
Additional Violations Discovered:
Once city inspectors start investigating one violation, they often find others. Initial $30,000 problem becomes $100,000+ nightmare.
Property Deterioration:
While violations remain unresolved, properties deteriorate further—especially red-tagged properties sitting vacant.
Foreclosure Risk:
If violations prevent you from selling or renting the property, mortgage payments become impossible, leading to foreclosure.
Southern California Cities We Serve
Los Angeles County: LA, Long Beach, Pasadena, Torrance, Glendale, Burbank—all cities. Extensive experience with REAP/SCEP properties and LA’s complex code enforcement.
Orange County: Santa Ana, Anaheim, Irvine, Huntington Beach, Costa Mesa, Newport Beach, Fullerton—all cities. Handle violations in both coastal and inland communities.
Riverside County: Riverside, Corona, Moreno Valley, Temecula, Murrieta, and all Inland Empire areas. Familiar with Riverside’s systematic enforcement approach.
San Bernardino County: San Bernardino, Fontana, Rancho Cucamonga, Ontario, Victorville, and High Desert communities. Handle desert and mountain area violations.
Ventura County: Ventura, Oxnard, Thousand Oaks, Simi Valley, Camarillo, and coastal cities. Experience with coastal commission violations and hillside issues.
San Diego County: San Diego, Chula Vista, Oceanside, Escondido, Carlsbad, and all county areas. Handle short-term rental violations and coastal property issues.
Get Relief From Code Violation Stress Today
Stop worrying about mounting fines, city inspectors, and impossible correction costs. Urban Street Ventures purchases properties with violations throughout Southern California—you don’t fix anything, you don’t deal with the city, you get cash and walk away.
Fair offers within 24 hours. Close in 14-21 days. We handle all violations after closing. Thirty years of experience resolving code issues throughout LA, Orange, Riverside, San Bernardino, Ventura, and San Diego counties.
Call 1-800-500-2601 or request your cash offer now.