📘 What is a Code Violation?

A Code Violation occurs when a property fails to meet local building, zoning, housing, or safety regulations set by the city or county. These violations can range from minor issues like chipped paint to major infractions such as illegal wiring or structural hazards.

Code violations are flagged during inspections and can result in fines, stop-work orders, or delayed property usage if not resolved promptly.

📌 When and Why It’s Used

Code violations are issued during routine property inspections, complaint investigations, or when a permit-triggering project is underway. For real estate investors, these violations can impact a property's usability, delay sales or tenant occupancy, and reduce overall value.

Addressing violations quickly helps avoid penalties and ensures properties remain compliant and safe for tenants.

🧮 How It’s Calculated or Applied

Code violations are not calculated with a formula but are documented by municipal inspectors. Each jurisdiction maintains a list of codes covering construction standards, habitability, environmental safety, and more. When a violation is found, the inspector issues a report outlining the infraction and the corrective action required.

Investors can request code enforcement records from local agencies before purchasing to avoid inheriting unresolved issues.

Timely remediation typically involves hiring a licensed contractor and scheduling a reinspection for clearance.

✅ Pros

• Helps ensure tenant safety and property quality
• Encourages proper maintenance and regulatory compliance
• Can be used as a negotiation point in property acquisitions

⚠️ Cons

• May delay construction, leasing, or property resale
• Can incur steep fines or daily penalties if left unresolved
• Creates public records that can affect property reputation or value