Trying to sell a house that has code violations hanging over it can feel like you’re dragging a heavy anchor. Whether it’s unfinished electrical work, a bathroom added without a permit, or a long list of safety issues flagged by the city—those violations can make it harder to sell, sure. But not impossible. In fact, you might have more options than you think.
If you’re dealing with a tough situation, whether it’s an inherited home, a long-time rental gone sideways, or just a property that’s gotten out of hand, there’s a path forward. At Bloom Homes, we help Ontario homeowners sell homes with all kinds of code issues—fast, fairly, and without making the process a nightmare.
So, what do you need to know about selling a house with code violations in Ontario?
First, What Exactly Are Code Violations?
Let’s start with the basics. A code violation means the property doesn’t meet the legal standards set by your local municipality or province. These rules are meant to keep homes safe and livable—but when work gets done without permits, or a house has been neglected over the years, those issues can pile up.
Some of the most common violations include:
- Unpermitted additions or renovations
- Faulty wiring or outdated electrical systems
- Unsafe plumbing or DIY pipework
- Structural issues like sagging floors or cracked foundations
- Missing smoke or carbon monoxide detectors
- Mold or moisture damage
- Fire safety issues in multi-unit buildings
- Improper insulation or venting
- Illegal basement suites
Even minor violations can slow down or derail a home sale—especially if your buyer is using financing, which usually requires inspections and appraisals.
Can You Sell a House With Code Violations in Ontario?
You bet. There’s nothing in Ontario’s real estate laws that says a home must be perfect—or even compliant—to sell. But honesty matters.
If you’re aware of existing code violations, you’re legally required to disclose them to potential buyers. Trying to sweep issues under the rug? That can backfire big time. Failing to disclose material problems can lead to lawsuits and hefty penalties.
That said, you don’t need to fix everything before you sell. You just need to be upfront and work with the right buyer.
Your Main Options for Selling a House With Code Violations
Let’s talk about how to actually get the property sold. You’ve got a few options, depending on how much time and money you want to spend—and how quickly you want to move on.
Option 1: Make the Repairs and Sell the Traditional Way
This is what most people assume they have to do—but it’s not always necessary.
Here’s when this route might make sense:
- You’ve only got a few minor violations to correct
- You have the time and budget for repairs
- You want to sell to a retail buyer using traditional financing
- You’re in a strong market where every dollar counts
Repairs could range from a couple thousand to tens of thousands of dollars, depending on what’s wrong. And it might take weeks (or months) to pull permits, get contractors in, and pass re-inspections.
So before you go this route, ask yourself: Is the extra money I might make really worth the time, stress, and expense?
Option 2: Sell the House As-Is to a Cash Buyer
This is often the cleanest option—especially if the violations are serious or widespread.
Cash buyers like Bloom Homes specialize in homes with code issues, damage, and deferred maintenance. We buy homes in any condition, which means:
- You don’t fix a thing
- You don’t wait on permits or inspections
- You don’t pay commission fees
- You avoid the headache of showings and buyer negotiations
We’ll take care of the paperwork, work with your timeline, and handle the repairs or legal follow-up ourselves. It’s straightforward, and for many sellers in Ontario, it’s the stress-free solution they’ve been looking for.
Option 3: List the Property As-Is With an Agent
You can list your home as-is, violations and all—but keep in mind that:
- Most traditional buyers will want a discount
- Inspections will likely uncover more issues
- Financing can fall apart if the lender isn’t satisfied
- You’ll still have to disclose known code violations
If you’re okay with a longer wait and lower offers, this might be a valid option. Just make sure your real estate agent is familiar with selling distressed or non-compliant properties.
Option 4: Offer Seller Financing or a Lease-to-Purchase
If you don’t need to cash out right away, seller financing or a lease-to-own agreement could attract buyers who are willing to take on the property as-is in exchange for flexible terms.
This works especially well if:
- You own the house outright
- You’re open to monthly payments over time
- The violations aren’t so serious that they affect safety
It’s not a quick fix, but it gives you more control—and might even net you a higher price.
What About Active Fines or Stop Work Orders?
If the city has already issued fines, slapped on a stop work order, or threatened legal action, don’t panic. It’s still possible to sell your house—you’ll just need to be upfront about the situation.
Here’s what you can do:
- Pull all records from your local building department.
- Find out exactly what needs to be done to satisfy the city.
- Get a repair estimate, even if you don’t plan to do the work.
- Talk to a real estate lawyer if liens or legal threats are involved.
- Work with a buyer familiar with city violations—like Bloom Homes.
A buyer who knows how to navigate municipal issues can help you avoid delays and get the deal done.
Disclosures: What Do You Have to Share?
If you’re selling a house with known problems, you’re legally required to disclose them—especially if they could affect a buyer’s safety or ability to use the property.
In Ontario, that includes:
- Known building code violations
- Unpermitted work or illegal renovations
- Notices from the city or province
- Mold, asbestos, or hazardous conditions
- Fire safety issues
Your best bet is to provide as much documentation as possible. That could include inspection reports, violation notices, repair quotes, or anything else that helps the buyer understand the scope of the issue.
Don’t try to sugarcoat it. A serious buyer will find out anyway—and being honest up front builds trust and avoids legal problems later.
How Much Will You Get for a House With Code Violations?
This depends on several factors:
- The severity of the violations
- The cost to fix them
- The condition of the rest of the house
- The strength of the local market
- The buyer’s risk tolerance
Let’s say your house would be worth $600,000 if it were fully compliant. But it needs $50,000 in code work, plus another $10,000 in cleanup and holding costs. A cash buyer might offer $470,000–$490,000—taking on all the work themselves.
You’re getting less than full market value, sure—but you’re also skipping:
- Contractor headaches
- Inspection delays
- Realtor commissions
- Legal risks
- Holding costs during repairs
That kind of trade-off makes sense for a lot of Ontario homeowners who just want to get out and move on.
What’s the Fastest Way to Sell?
If you’re dealing with a house that’s got code violations and you’re tired of the stress, the fastest and easiest way to sell is as-is to a local cash buyer.
At Bloom Homes, we work with sellers all over Ontario—buying houses in all kinds of conditions, including those with long-standing city issues or structural violations. We don’t judge. We just make honest offers and help you walk away without dealing with the mess.
Want to skip repairs, avoid agents, and close in a matter of days? We’ve got you covered.