Selling a Rental Property That Has Code Violations
Repair orders, receivers, tenant relocation and city rental programs, explained from the statutes and the cities' own codes. You can sell to us as-is with tenants in place, even difficult ones.
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When a California rental's violations are so extensive that residents or the public are substantially endangered, the enforcement agency can order the owner to repair or abate them, and if the owner doesn't comply within a reasonable time, the agency, a tenant or a tenant association can ask a court to appoint a receiver (H&S Code 17980.6 and 17980.7). While a receiver is in place, the owner can't collect rents or encumber or transfer the property, and the statute's remedies also reach a later owner who knew, or is legally charged with knowing, about the order. Fresno, Modesto and Stockton run their own rental inspection programs, and Merced fines and publicly lists repeat housing code violators. A California landlord-tenant attorney can explain how these rules apply to your rental.
Repair and Abatement Orders on a Rental
Under the State Housing Law, an enforcement agency may issue an order or notice to repair or abate when a building's violations are so extensive, and of such a nature, that residents or the public are substantially endangered (H&S Code 17980.6). The notice is posted on the property and mailed or posted to each affected unit.
Since January 1, 2025, a code enforcement officer, and not only a health officer, can determine visible mold growth for purposes of the state's substandard-building list, and in limited circumstances insect, vermin or rodent infestation; minor mold on surfaces that normally get wet doesn't count.
A California landlord-tenant attorney can go through an order with you and explain its deadlines.
If an Order Goes Unanswered: Receivership
If the owner doesn't comply with a 17980.6 order within a reasonable time, the enforcement agency, a tenant, or a tenant association or organization can ask a court to appoint a receiver for the building (H&S Code 17980.7(c)). Notice has to be posted on the building and mailed first-class to everyone with a recorded interest in the property at least three days before the petition is filed.
Before appointing anyone, the court must consider whether the owner had a reasonable opportunity to correct the conditions cited, and it can appoint only someone who has shown the capacity to run a financial and construction plan for rehabilitating the building; a nonprofit or community development corporation may serve.
Once a receiver is appointed, the owner and the owner's agent are barred from collecting rents, interfering with the receiver, and encumbering or transferring the building or the land under it, while the receiver takes full control and collects the rents. With court approval, the receiver can borrow money for the repairs and secure that debt with a lien on the property.
The court can make the owner pay the receivership's unrecovered costs, and when it finds the building substantially endangers its residents, it must order the owner to pay the enforcement agency's reasonable costs, attorney's fees included, and to provide or pay relocation benefits to each lawful tenant who can't stay in the building during the repairs.
The statute treats as the owner both the owner at the time of the first notice or order and any later successor in interest who had actual or constructive knowledge of the notice, order or prosecution (H&S Code 17980.7(f)). Talk with a California attorney before any deadline in an order or a receivership petition passes.
This is general information about how the process works, not legal or tax advice. Every situation is different — talk with a California attorney (and a tax professional) about yours.
City Rental Programs Across the Valley
Fresno: the Rental Housing Improvement Act measures rentals against the habitability standards in Civil Code 1941.1, and every non-exempt rental is subject to a baseline inspection picked by random sampling. Failing both the inspection and the follow-up compliance re-inspection can get a property referred to Code Enforcement or the City's Anti-Slum Enforcement Team, and pervasive violations can widen the inspection to all of the units and to other properties with the same owner or manager. A unit that was exempt from inspection loses that exemption if a notice and order is issued for the property.
Modesto: under Ordinance 3703-C.S., in effect since October 24, 2019, owners register their residential rental properties with the City; the City says it audits up to 10 percent of rental units a year and reports 2,554 properties inspected in 2025, with violations identified in 617 units.
Stockton: the Residential Rental Unit Inspection and Maintenance Code (Municipal Code Chapter 8.32) calls for every residential rental unit, single-family rentals included, to be inspected at least once every four years unless it is in the City's self-certification program or exempt.
Merced: Municipal Code Chapter 8.53, approved by the City Council in June 2026, makes an owner with three housing code violations within 12 months a repeat housing code violator, with a $1,000 fine and a listing on the City's website.
A California landlord-tenant attorney can tell you which local program applies to your property and what it requires.
What Carries Over to a Buyer
A State Housing Law case goes on the public record: the agency has to record a notice of pendency with the county recorder when it starts the case, with the same effect as a lis pendens, and record a notice of final disposition when the case is resolved (H&S Code 17985).
That recording matters when the property changes hands. Under CCP 405.24, a later buyer or lender is deemed to have constructive notice of the pending action, and the outcome relates back to the date the notice was recorded, which is how the successor rule in H&S Code 17980.7(f) can reach a new owner.
Sales of rentals with one to four units generally come with the Real Estate Transfer Disclosure Statement, which asks the seller about any notices of abatement or citations against the property. A California real estate attorney can tell you what your disclosure needs to cover.
This is general information about how the process works, not legal or tax advice. Every situation is different — talk with a California attorney (and a tax professional) about yours.
Selling a Cited Rental to Spark Home Offers
City code violations are among the title and code issues our homepage lists as situations we buy in, and tired landlords can sell to us with tenants in place, even difficult ones. We buy single-family homes, townhomes, condos, duplexes and small multifamily as-is: old roof, foundation issues, outdated everything.
A sale, ours included, doesn't erase an order, because the state remedies follow a buyer who knew about it; a California attorney is the right person to ask how an open case would be handled in your sale.
There are no agent commissions and no fees to work with us, we pay the standard closing costs, and the offer is free with no obligation. You choose the closing date.
Three Simple Steps to Sold
Listing a house can mean months of repairs, open houses, and buyers backing out. Here's how selling to Spark Home Offers works instead.
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Fill out the short form or call/text us. We'll reach out within 24 hours to learn your situation and schedule a quick walkthrough.
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Rental Code Violation Questions
Can a tenant ask a court to put my rental into receivership?
Yes. A tenant or a tenant association, as well as the enforcement agency, can petition for a receiver after the owner fails to comply within a reasonable time with a repair or abatement order issued under H&S Code 17980.6. The court must consider whether the owner had a reasonable opportunity to correct the cited conditions.
Can I sell a rental while a receiver is in charge?
Not while the receivership lasts: once a receiver is appointed, the owner is barred from encumbering or transferring the building or the land it sits on. A California attorney can explain how a receivership ends in your case.
Who pays to relocate tenants during repairs?
In a State Housing Law receivership case, when a court finds a building substantially endangers its residents, it must order the owner to provide or pay relocation benefits to each lawful tenant who can't stay during the repairs (Health and Safety Code 17980.7(d)). Other relocation rules can apply too; a California landlord-tenant attorney can explain which ones cover your rental.
Does a buyer take on the violations at my rental?
The state remedies reach a later owner who had actual or constructive knowledge of the notice, order or prosecution, and a recorded notice of pendency gives later buyers constructive notice. A California real estate attorney can tell you how that plays out in your sale.
Do Modesto and Stockton inspect rentals?
Modesto requires owners to register their rental properties, and the City says it audits up to 10 percent of rental units a year. Stockton's Municipal Code calls for each rental unit to be inspected at least once every four years unless it is self-certified or exempt.
Do my tenants have to move out before I sell to you?
No. Tired landlords can sell to us with tenants in place, even difficult ones, and we buy the property as-is.
Own a Rental With Open Violations?
Tell us about the property, the tenants and any notices you've received, and we'll reach out within 24 hours. Call (559) 420-7887 or fill out the form to get started.