Sell a House with Code Violations in Colorado (2026)

Code violations create real obstacles for Colorado homeowners. Traditional buyers may walk away. Lenders won't finance non-compliant properties. And bringing everything up to code can cost tens of thousands of dollars you don't have. But here's what most sellers don't realize: you have options beyond expensive remediation.

Important: We are real estate investors, NOT licensed real estate agents. This guide provides educational information to help you understand your options for selling a house with code violations in Colorado.

Facing code enforcement pressure and need to sell quickly? Get a no-obligation cash offer on your property—even with open permits or violations.

Common Code Violations in Colorado Homes

The most common residential code violations in Colorado include unpermitted additions, DIY electrical work, finished basements without egress windows, and HVAC installations without permits. These issues often surface during pre-sale inspections or when permit records don't match the property's current configuration.

Unpermitted Additions and Alterations

Room additions without permits represent the most common violation we encounter. A previous owner finished the basement. Someone converted the garage to living space. The deck got rebuilt without paperwork.

Common examples include:

• Basement finishes (especially pre-2000 homes)
• Garage conversions to bedrooms or living space
• Room additions or bump-outs
• Covered patios converted to enclosed rooms
• Attic conversions to living space

Electrical and Plumbing Violations

DIY electrical work ranks among the most dangerous—and most frequently cited—violations in Colorado homes. Panel upgrades, outlet additions, and rewiring projects require permits and licensed contractor work in most municipalities.

Watch for these common violations:

• Electrical panel upgrades without permit
• Additional circuits or outlets (especially in garages or basements)
• Water heater replacements (yes, these need permits in Colorado)
• Bathroom additions or modifications
• Kitchen remodels with plumbing changes

Safety Code Violations

Safety violations often appear during routine inspections, even when the homeowner had no idea they existed. Colorado's current building codes require specific safety features that older homes may lack.

The most common safety violations include:

• Missing or improperly installed smoke and CO detectors
• Bedrooms without compliant egress windows
• Handrails and guardrails below current height requirements
• Missing GFCI outlets in kitchens, bathrooms, and garages
• Improper bedroom window sizes

Structural and HVAC Issues

Load-bearing wall modifications without engineering approval create serious liability. HVAC replacements and roof work without permits add to the problem.

• Load-bearing wall removals or modifications
• Furnace or AC unit replacements without permit
• Roof replacements without permit (required in many jurisdictions)
• Foundation modifications
• Structural beam additions or changes

Colorado Disclosure Requirements for Code Violations

Colorado law under the Seller Property Disclosure Act (C.R.S. § 38-35.7) requires sellers to disclose known code violations on the Seller's Property Disclosure (SPD) form. Failure to disclose can result in actual damages plus court costs. This applies whether you're selling traditionally or as-is.

The Seller's Property Disclosure Form (SPD)

Every residential real estate transaction in Colorado requires the seller to complete the Seller's Property Disclosure form. The Colorado Real Estate Commission provides the standard form, and it specifically asks about code violations.

The SPD form asks:

• "Are you aware of any building code, city, or county violations that have not been corrected?"
• "Are you aware of any additions or alterations made without necessary permits?"
• "Are there any current zoning violations or non-conforming uses?"
• "Are there any open or expired building permits?"

Your answers must be truthful. "As-is" sales don't exempt you from disclosure requirements—they simply mean you won't make repairs.

What Exactly Must You Disclose?

You must disclose what you actually know. Colorado law doesn't require you to conduct investigations, but you can't hide information you possess.

Disclosure obligations include:

• Any violation notices you've received
• Unpermitted work you know about (even if done by previous owners)
• Open building permits that were never closed
• Code enforcement cases (active or resolved)
• Information previous owners disclosed to you
• Work you personally did without permits

Legal Consequences of Non-Disclosure

Under the Seller Property Disclosure Act (C.R.S. § 38-35.7), sellers who fail to disclose known material defects can be liable for actual damages plus court costs.

Non-disclosure risks include:

• Post-sale lawsuits from buyers who discover violations
• Liability for the buyer's remediation costs
• Potential fraud claims in egregious cases
• Real estate commission complaints if agents were involved

The Code Enforcement Process in Colorado

Understanding how code enforcement works helps you make informed decisions. Denver, Aurora, and Colorado Springs each handle violations differently, but the basic process is similar across the Front Range.

Denver Code Enforcement (CPD)

Denver's Community Planning and Development (CPD) department handles building code enforcement. Violations typically start with a complaint or inspection discovery.

Denver's enforcement process:

1. Complaint or Discovery: Neighbor complaints, insurance inspections, or permit reviews trigger most cases
2. Notice of Violation (NOV): Initial warning with timeline to correct (typically 30 days)
3. Order to Comply (OTC): Formal order if NOV is ignored (stricter deadline)
4. Fines and Penalties: Daily fines accumulate for non-compliance
5. Lien Filing: Unpaid fines can become liens against the property

Aurora Code Enforcement

Aurora's Development Services department follows a similar escalation process. Aurora tends to provide reasonable correction timelines and works with homeowners on complex issues.

• Initial inspection and violation notice
• 30-60 day correction period (negotiable for complex issues)
• Re-inspection scheduling
• Civil citation for non-compliance
• Municipal court involvement for persistent violations

Colorado Springs Code Enforcement

Colorado Springs Regional Building manages code compliance in El Paso County's largest city. The department focuses on safety violations and major unpermitted construction.

Colorado Springs priorities include:

• Life-safety violations (egress, electrical, structural)
• Unpermitted additions that affect property records
• Occupancy violations (overcrowding, illegal units)
• Property maintenance code violations

Your Options: Fix vs. Sell As-Is

The decision depends on four factors: remediation cost, time available, property condition, and your financial situation. Here's how to analyze your options.

Decision Framework: Fix vs. Sell As-Is

When to Fix Code Violations Before Selling

Fixing violations before selling makes sense in specific situations:

• Violation is minor: Simple fixes under $2,000 (missing CO detectors, GFCI outlets)
• Strong market conditions: Premium pricing available in your neighborhood
• Plenty of time: 3-6 months available without carrying cost pressure
• Quality work exists: The unpermitted work is done well, just needs permit blessing
• You have capital: Funds available without borrowing

When to Sell As-Is with Code Violations

Selling as-is makes sense when remediation costs outweigh benefits:

• Major remediation required: Costs exceed $10,000 or are unknown
• Timeline pressure: Relocation, inheritance deadlines, or financial constraints
• Multiple violations: Scope of problems is uncertain or interconnected
• Property needs other work: Violations are just one of several condition issues
• Limited capital: You can't fund repairs without sale proceeds
• Active enforcement: City pressure makes quick sale advantageous

What Retroactive Permits Cost in Colorado

Retroactive permits in Colorado typically cost $500 to $2,000+ for the permit alone, but the real expense is bringing the work up to current code standards. Many homeowners discover that the permit fee is just the beginning.

Permit Fee Structures by Municipality

The Hidden Cost: Bringing Work to Code

The permit fee is rarely the problem. The real cost is upgrading work to meet current code requirements.

Example: Basement Finish Retroactive Permit

• Permit application fee: $350
• Inspections: $150
• Egress window installation: $3,500-$6,000
• Smoke/CO detector hardwiring: $500-$1,000
• GFCI outlet upgrades: $300-$600
• Electrical panel upgrade (if required): $1,500-$3,000

Total: $6,300-$11,100 for a "simple" basement permit

Selling to a Cash Buyer with Code Violations

Cash buyers regularly purchase properties with code violations, open permits, and unpermitted work. Understanding why—and what to expect—helps you evaluate this option.

Why Cash Buyers Purchase Violation Properties

• No lender requirements: We don't need FHA, VA, or conventional financing approval
• Built-in renovation plans: We're already planning to update the property
• Permit process experience: We handle retroactive permits routinely
• Risk tolerance: We accept uncertainty that individual buyers won't
• Speed advantage: We can close before enforcement deadlines

Our Process for Violation Properties

When you contact Terra Capital about a property with code violations, here's what happens:

1. Free property assessment: We evaluate the property, violations, and estimated remediation
2. Permit history review: We pull permit records and identify open permits
3. As-is offer: We provide a cash offer reflecting current condition
4. Flexible closing: You choose the closing date that works for your situation
5. Simple transaction: Standard title company closing, no repairs required from you

Frequently Asked Questions

Next Steps: Selling Your Colorado Property with Code Violations

Code violations create challenges, but they don't make your property unsellable. You have options—and the right choice depends on your specific situation.

If you want to maximize price: Consider remediation if violations are minor, you have time, and you can afford the upfront costs.

If you want certainty and speed: Sell as-is to a cash buyer who handles code issues routinely. You'll receive a lower price, but you'll close in days rather than months, with zero out-of-pocket expense.

Whatever you decide, disclose everything. Colorado's disclosure requirements protect both you and your buyer. Accurate disclosure on the SPD form prevents post-sale disputes and legal liability.