Selling a House With Code Violations or City Liens in Texas

A code violation notice taped to the door or arriving in the mail is the city telling you that something on the property does not meet its ordinances. On its own it is not a lien, and it does not stop you from selling. What turns a notice into a title problem is time. If the work is not done, Texas law lets the city do it and send the bill to the property itself.

What does a code violation notice actually mean?

It means a code officer has found a condition that breaks a city ordinance and is giving you a deadline to fix it. Arlington describes its notice of violation as an educational first step that names the violation and sets a timeframe for correction. The city's own examples of conditions it can abate include high weeds and grass, unclean premises and nuisance outside storage.

If the deadline passes, two separate things can happen. The city can cite the owner, which in Arlington is handled in municipal court as a Class C misdemeanor, with fines of up to $2,000 depending on the nature, severity and frequency of the violation. Or, for certain conditions, it can hire a contractor to correct the problem and bill the owner. The second path is the one that reaches your title.

How does a city put a lien on a house?

By doing the work itself and recording the cost against the property. Under the Texas Health and Safety Code, if an owner does not comply with a sanitation ordinance, such as one covering weeds or rubbish, within seven days of notice, the city may do the work and charge the expense to the owner. To secure that charge, it files a statement of expenses with the county clerk, and the lien attaches when the statement is filed.

That lien carries interest at 10 percent from the date the city paid, and it is inferior only to tax liens and street improvement liens. In Arlington, an owner whose lot is mowed by a city contractor is billed the contractor's cost plus a $200 administration fee per abatement, and an unpaid bill becomes an interest-bearing lien. Only one notification is made per year, so a neglected yard can be mowed and billed more than once.

What happens with a substandard or dangerous building?

It goes to a public hearing. Texas cities may adopt ordinances requiring that buildings which are dilapidated or unfit for habitation, or vacant and open to unauthorized entry, be secured, repaired, removed or demolished. The ordinance must give the owner proper notice and provide a public hearing, and at that hearing the owner carries the burden of showing what work is needed and how long it will reasonably take.

If the building is found in violation, the city can order the owner to act. The starting point is 30 days to secure the building or to repair, remove or demolish it, unless the owner shows the work cannot reasonably be done in that time. Going beyond 90 days requires a detailed plan and schedule presented at the hearing. If the owner does not comply, the city may do the work at its own expense.

Those expenses can then be assessed as a lien on the property, with one exception written into the statute: the lien does not attach to a homestead protected by the Texas Constitution. Arlington's guidance adds that in dangerous building cases, staff may ask the judge to assess civil penalties instead of expenses, and those penalties can reach $1,000 per day depending on the severity of the violations.

Can you sell a house with open code violations?

Yes. Nothing in Texas law stops an owner from selling a house with an open violation. A citation already issued to you stays your matter in municipal court, but the condition stays with the house, and the next owner will have to correct it. Where a city has recorded notice of a substandard building hearing in the county property records, that notice binds anyone who acquires an interest in the property afterward.

In practice, open violations narrow the pool of buyers more than the law does. An appraiser or inspector may flag the same conditions the code officer did, and a house facing a repair or demolition order is difficult to finance, which is why such houses often sell for cash.

Do you have to disclose code violations when you sell?

Yes, if you know about them. The seller's disclosure notice required by Section 5.008 of the Texas Property Code asks whether the seller is aware of any notices of violations of deed restrictions or governmental ordinances affecting the condition or use of the property. The same form asks about additions or repairs made without necessary permits and about any condition that materially affects the physical health or safety of an individual.

The notice is completed to the best of your knowledge, and marking an item unknown is compliant if you genuinely do not know. It must be delivered on or before the effective date of the contract. If it is not, the buyer may terminate for any reason within seven days after receiving it. Some transfers are exempt, including foreclosure sales and sales by an executor or other fiduciary administering an estate.

Who pays the city liens at closing?

Usually the seller, out of the sale proceeds, unless the contract says otherwise. A recorded city lien is a claim against the title, and the title company will want it paid or released before it insures the buyer, the same as a mortgage or a judgment. A substandard building lien is extinguished once the owner or another person with an interest in the title reimburses the city, so it can be cleared at the closing table.

Ask the city for a written payoff early, including accrued interest and administration fees, because the title company needs a current figure. If the house is in an HOA subdivision, the resale certificate must also summarize any notices the association has received from a government authority about health or housing code violations on your lot, so the buyer may see the issue there too.

What should you do first?

Find out exactly what is on record. Pull every notice of violation you have received, ask code compliance whether any abatement has been billed or liened, and search the county records for lien statements or recorded hearing notices. Then decide whether correcting the violation before listing is worth the cost, or whether selling the house as it stands is the better trade.

Small items like mowing liens are usually cheaper to clear than to explain to a buyer. A substandard building order is different, because the repair bill and the deadline arrive together. If you are weighing cash home buyers in Arlington against doing the repairs yourself, our page on selling a house with code violations walks through how we look at a house in that position.

House Buyers Texas buys houses; we are not attorneys and this is not legal or tax advice. The rules turn on facts specific to your situation, so an attorney or CPA is worth the consultation before you commit to a route.