How to Sell a House with Code Violations in Indiana & Kentucky

You open your mailbox and find a letter from the city. It's a code violation notice -- maybe for overgrown weeds, a deteriorating roof, or electrical work done without a permit years ago. Your stomach drops. You already know you can't afford the repairs, and now the clock is ticking on fines that grow larger by the week.

If this sounds familiar, you are not alone. Thousands of property owners across Indiana and Kentucky deal with code violations every year. Some are inherited from previous owners. Some result from deferred maintenance during financial hardship. Others stem from unpermitted work that seemed fine at the time but now sits flagged in a city database.

The good news: you can sell a house with code violations. You do not have to fix everything first, and you do not have to let the fines pile up until the city puts a lien on your property. This guide explains exactly how code enforcement works in Indiana and Kentucky, what your options are, and how to move forward.

What Are Code Violations?

A code violation is any condition on your property that does not meet the standards set by your local building, housing, or zoning code. These codes exist to protect public health and safety, and they cover nearly every aspect of a property's condition.

Common Types of Code Violations

• Structural violations -- Foundation cracks, sagging floors, compromised load-bearing walls, deteriorating framing, roof damage that allows water intrusion
• Electrical violations -- Outdated wiring (knob-and-tube or aluminum), unpermitted electrical work, exposed wiring, overloaded panels, missing GFCI outlets in wet areas
• Plumbing violations -- Leaking or corroded pipes, improper drain connections, non-functioning water heaters, sewer line issues, cross-contamination risks
• Exterior maintenance violations -- Peeling paint, broken windows, deteriorating siding, damaged gutters, unmaintained porches or stairs, overgrown vegetation
• Zoning violations -- Unpermitted additions or conversions (garage to living space), operating a business in a residential zone, setback encroachments, too many unrelated occupants
• Fire safety violations -- Missing smoke detectors, blocked egress windows, improper storage of flammable materials, non-functioning fire escapes
• Environmental violations -- Improper asbestos or lead paint conditions, mold issues, standing water creating mosquito breeding grounds

Some violations are minor and carry small fines. Others -- particularly structural and fire safety issues -- can lead to a property being declared unsafe for occupancy or even condemned.

How Code Enforcement Works in Indiana

In Indiana, code enforcement is handled at the local level. There is no single statewide housing code that applies uniformly to every city and county. Instead, municipalities adopt their own ordinances, often based on the International Property Maintenance Code (IPMC), and enforce them through their own departments.

The Indiana Framework

Indiana Code Title 36, Article 7 grants municipalities the authority to adopt building codes and establish enforcement mechanisms. Under IC 36-7-9 (the Unsafe Building Law), local government can identify, inspect, and order the repair or demolition of buildings deemed unsafe. This is the statute most commonly invoked for serious structural violations and condemnation proceedings.

Key aspects of Indiana code enforcement:

• Complaint-driven and proactive. Some cities respond only to complaints; larger cities like Jeffersonville conduct proactive inspections in certain neighborhoods.
• Notice and hearing process. Under IC 36-7-9, property owners must receive written notice of violations and have the right to a hearing before an enforcement authority or hearing officer.
• Repair orders with deadlines. If violations are confirmed, the owner receives a specific timeframe to make repairs -- typically 30 to 90 days depending on severity.
• Escalation to fines and liens. Failure to comply can result in daily fines, and those fines can be recorded as liens against the property under IC 36-7-9-5.
• Demolition authority. For severely deteriorated properties, municipalities can order demolition and bill the property owner for the cost, which also becomes a lien.

New Albany and Floyd County

New Albany enforces property maintenance standards through its Building Commission and code enforcement officers. The city follows a process similar to Jeffersonville: complaint or inspection, written notice, compliance period, then escalating penalties. New Albany has been particularly focused on vacant and abandoned properties in recent years, using IC 36-7-9 authority to address blighted structures along Main Street and in the Midtown area.

How Code Enforcement Works in Kentucky

Kentucky's approach to code enforcement differs from Indiana's in several important ways. While local governments still handle day-to-day enforcement, the state provides a more defined framework through the Kentucky Building Code (KRS Chapter 198B) and the Kentucky Fire Prevention Code.

The Kentucky Framework

Under KRS 198B.060, the Kentucky Building Code applies statewide, though local governments can adopt additional requirements that are more stringent. The Department of Housing, Buildings and Construction oversees the statewide code, while local code enforcement offices handle inspections and violations.

Key aspects of Kentucky code enforcement:

• Statewide minimum standards. Unlike Indiana's purely local approach, Kentucky establishes baseline building standards that apply everywhere, with cities able to add stricter requirements.
• Louisville Metro is its own system. Louisville Metro Government (merged city-county since 2003) operates one of the most active code enforcement programs in the region through its Department of Codes and Regulations.
• Property maintenance codes. Kentucky cities commonly adopt the International Property Maintenance Code. Louisville Metro has its own Land Development Code (Chapter 150 of the Louisville Metro Code of Ordinances) with extensive property maintenance requirements.
• Liens and penalties. Under KRS 65.8836, local governments can impose civil penalties for code violations and record them as liens. Louisville can impose fines up to $500 per day per violation.
• Condemnation process. Structures deemed dangerous or unfit for occupancy can be condemned under KRS 198B.130, requiring the owner to repair or demolish at their own expense.

Indiana vs. Kentucky: A Comparison

Factor	Indiana	Kentucky
Code framework	Locally adopted; no mandatory statewide housing code	Statewide Kentucky Building Code (KRS 198B) with local additions
Primary enforcement law	IC 36-7-9 (Unsafe Building Law)	KRS 198B.060 and local ordinances
Typical fine range	$100 - $2,500/day (varies by city)	$100 - $500/day (Louisville Metro); varies elsewhere
Lien authority	Yes -- fines and abatement costs become liens (IC 36-7-9-5)	Yes -- civil penalties become liens (KRS 65.8836)
Condemnation process	Hearing officer process under IC 36-7-9	State authority under KRS 198B.130; local boards of housing appeals
Demolition authority	Yes -- municipality can demolish and lien the cost	Yes -- local government can demolish and lien the cost
Disclosure when selling	Required (IC 32-21-5)	Required (KRS 324.360)
Vacant property registration	Some cities (varies)	Louisville Metro requires registration

What Happens If You Ignore Code Violations

Ignoring code violations does not make them disappear. The enforcement process is designed to escalate until compliance is achieved, and the financial consequences grow significantly over time.

The Typical Escalation Path

1. Initial notice. You receive a written notice identifying the violation and giving you a deadline to fix it (usually 10 to 90 days).
2. Follow-up inspection. An inspector returns to check compliance. If the issue is not resolved, you receive a second notice or a citation.
3. Fines begin. Daily fines start accruing. In some jurisdictions, these are automatic; in others, they require a hearing or court order.
4. Liens are recorded. Accumulated fines are recorded as liens against your property. This affects your title and makes it difficult to sell, refinance, or transfer the property.
5. Court action. The city may file suit to compel compliance, seek injunctive relief, or obtain a demolition order.
6. Condemnation. For serious health and safety violations, the property may be declared unfit for habitation. Occupants are ordered to vacate.
7. Demolition. In extreme cases, the city orders demolition of the structure and bills the owner -- often $15,000 to $50,000 or more -- which becomes yet another lien.

"I had a client in Clark County who inherited a house with a bad roof and some electrical issues. She ignored the code notices for two years because she didn't have the money to fix it. By the time she called us, the fines had reached over $12,000 and there was a lien on the property. We were still able to buy it, but that lien had to be satisfied at closing, which came out of her proceeds. If she had called us when the first notice arrived, she would have walked away with thousands more."

Can You Sell a House with Open Code Violations?

Yes, you can sell a house with open code violations in both Indiana and Kentucky. There is no law in either state that prevents the sale of a property with outstanding violations. However, there are important things you need to understand.

Disclosure Is Required

In Indiana, the Seller's Residential Real Estate Sales Disclosure form (required under IC 32-21-5) asks sellers to disclose known defects and conditions affecting the property. If you have received code violation notices, you are required to disclose them. Failure to disclose known violations can expose you to legal liability after the sale.

In Kentucky, KRS 324.360 requires sellers to complete a property condition disclosure form. Known code violations, condemnation orders, and related issues must be disclosed. Louisville Metro has additional disclosure requirements for properties within its jurisdiction.

The Lien Problem

The real complication is not the violations themselves -- it is the liens that result from unpaid fines. When fines are recorded as liens against your property, they must be satisfied (paid) before or at closing for the title to transfer cleanly.

Here is how this typically plays out:

• If fines are small or recent, they can often be paid from the sale proceeds at closing. The title company handles this as part of the normal closing process.
• If fines are substantial, they reduce your net proceeds. In some cases, the liens may exceed the property's value, creating a situation similar to being "underwater" on a mortgage.
• Negotiation is possible. Many cities will negotiate lien amounts, especially if the sale will result in the property being repaired or improved. It is worth having your buyer or a representative contact the code enforcement office to discuss lien reduction.

Traditional Sale vs. Cash Sale

Selling a house with code violations through a traditional real estate listing is difficult for several reasons:

• Most mortgage lenders will not finance a property with serious code violations (FHA and VA loans are particularly strict)
• Home inspections will flag the same issues, leading to renegotiation or buyer withdrawal
• Appraisers may reduce the property's value significantly or refuse to appraise it at all
• The property may sit on the market for months, during which fines continue to accumulate

This is why most homeowners with code violation properties sell to cash buyers. A cash buyer does not need lender approval, does not require the property to meet specific condition standards, and can close quickly -- stopping the bleeding on daily fines.

Your Options When Facing Code Violations

Option 1: Fix the Violations

If you have the financial resources and the violations are minor (cosmetic issues, overgrown vegetation, minor repairs), fixing them yourself is straightforward. Contact your local code enforcement office, get a clear list of what needs to be corrected, make the repairs, and request a re-inspection.

For more serious violations (electrical, plumbing, structural), repairs typically require licensed contractors and permits. Costs can range from a few hundred dollars for minor electrical work to tens of thousands for structural repairs or roof replacement.

Option 2: Negotiate with Code Enforcement

Many property owners do not realize that code enforcement offices are often willing to work with you. If you contact them proactively and explain your situation -- whether it is financial hardship, a recently inherited property, or a plan to sell -- they may:

• Extend your compliance deadline
• Reduce or waive accumulated fines
• Agree to hold off on further enforcement while you arrange a sale
• Provide information about assistance programs for low-income homeowners

The key is communication. Code enforcement officers deal with unresponsive property owners every day. When someone calls them proactively and shows good faith, it changes the dynamic entirely.

Option 3: Sell As-Is to a Cash Buyer

For many homeowners, selling the property as-is is the most practical path forward. This is especially true when:

• Repair costs exceed what you can afford or what makes financial sense
• Fines are accumulating and you need to stop the financial bleeding
• The property is vacant and deteriorating further
• You have inherited the property and do not want the burden of managing repairs from a distance
• The property has been condemned or declared unfit for occupancy

Cash buyers who specialize in distressed properties handle code violations regularly. They understand the process, know how to work with code enforcement offices, and factor the cost of violations and repairs into their offer. While you will receive less than full market value, you avoid the ongoing costs, stress, and legal exposure of holding a property with open violations.

How Cash Buyers Handle Code Violation Properties

When a cash buyer purchases a property with code violations, the process typically works like this:

1. Property assessment. The buyer evaluates the property, identifies all violations (known and unknown), and estimates repair costs.
2. Lien research. A title search reveals any liens from code enforcement fines, and the buyer factors these into the offer.
3. Offer. The buyer makes a cash offer that accounts for the property's condition, needed repairs, outstanding liens, and current market value after rehabilitation.
4. Code enforcement contact. Before or after closing, the buyer often contacts the code enforcement office to discuss the violations, any lien reductions, and the planned rehabilitation timeline.
5. Closing. Liens are paid from proceeds at closing (or negotiated down beforehand). The sale transfers the property -- and the responsibility for the violations -- to the buyer.
6. Rehabilitation. The buyer repairs all violations, pulls necessary permits, passes inspections, and brings the property up to code.

This process benefits everyone involved: the seller is relieved of a property they cannot maintain, the city gets a blighted property rehabilitated, and the neighborhood benefits from an improved home.

Steps to Take If You Have Received a Code Violation Notice

If you have recently received a code violation notice, here is what to do:

1. Do not ignore it. This is the single most important piece of advice. Ignoring the notice does not stop the process -- it accelerates the consequences.
2. Read the notice carefully. Identify exactly what violations are cited, what the deadline is, and who issued the notice. Note the case number and contact information for the enforcement office.
3. Assess your situation honestly. Can you afford the repairs? Do you have the time and ability to manage them? Do you even want to keep the property?
4. Contact code enforcement. Call the office listed on your notice. Ask questions, explain your situation, and find out what options you have for extensions or payment plans on fines.
5. Get repair estimates. If you are considering fixing the violations, get written estimates from licensed contractors so you know what you are dealing with financially.
6. Consider your selling options. If repairs are not feasible, contact a cash buyer early -- before fines accumulate further and eat into your equity.
7. Keep records of everything. Save all notices, correspondence, repair receipts, and photos. These protect you whether you fix the violations or sell the property.

Specific Situations We See Frequently

Inherited Properties with Code Violations

One of the most common scenarios involves someone inheriting a property from a deceased family member, only to discover it has accumulated code violations. The previous owner may have been elderly, in poor health, or financially unable to maintain the property. The heir now faces violations they did not cause, a property they may not want, and fines that have been running for months or years.

In both Indiana and Kentucky, the heir is responsible for the property's condition once they accept the inheritance (through probate or otherwise). The good news is that code enforcement offices generally show more flexibility with heirs, and selling the property quickly to a cash buyer is often the simplest resolution.

Rental Properties with Code Violations

Landlords sometimes face code violations on rental properties -- filed by tenants, neighbors, or city inspectors. In Louisville, the Metro Housing Department actively inspects rental properties and can issue violations for everything from missing smoke detectors to structural deficiencies. Indiana cities like Jeffersonville and New Albany have similar inspection programs for rental properties.

If you are a landlord tired of dealing with code enforcement issues on a property that requires more investment than it is worth, selling to a cash buyer allows you to exit cleanly without the ongoing liability.

Condemned Properties

A condemned property is one that has been officially declared unfit for human habitation by a code enforcement authority. This is the most severe enforcement action and typically involves serious structural, electrical, or fire safety deficiencies.

Even condemned properties can be sold. The buyer must understand and accept the property's status, and any existing occupants must have vacated before or at closing. Cash buyers who rehabilitate distressed properties routinely purchase condemned houses and bring them back to habitable condition.

Moving Forward

Code violations can feel overwhelming, especially when fines are accumulating and you are unsure of your options. But the reality is straightforward: you have choices, and the sooner you act, the more options you have available.

Whether you decide to fix the violations yourself, negotiate with code enforcement for more time, or sell the property as-is, the worst thing you can do is nothing. Inaction is the most expensive option.

If you have a property with code violations in Southern Indiana or the Louisville metro area and want to understand what it might be worth in its current condition, can help. We buy houses in any condition -- including properties with open code violations, accumulated fines, and even condemnation orders. There is no cost for a consultation and no obligation.

Call us at or request a cash offer online. We will walk you through your options honestly, even if selling to us is not the best fit for your situation.