House has code violations or unpermitted work? Here is how to sell it in Massachusetts.

What a buyer's attorney and inspector usually find

Most buyers hire a home inspector and a real estate attorney before they sign the purchase and sale agreement. Between them they tend to look in four places. You can look in the same four first.

The municipal lien certificate is set by state law. The town collector issues a certificate of the taxes, assessments, water charges and similar items that are liens on the parcel, for a $25 fee, within 10 days (not counting weekends and holidays) in a town of more than 5,000 people and within 20 days in a smaller one (MGL c.60 s.23). Whether a particular fine shows up on it depends on how the town recorded it, and we could not verify that for each town. The building and health files are separate records, so ask for them separately. See our municipal lien certificate guide.

We did not find a standard statewide seller disclosure form on mass.gov. What you must tell a buyer about a known defect is a legal question for your attorney. The safe rule is simple: if you know about an order, a violation or unpermitted work, say so in writing before the buyer's deadlines. See our seller disclosure guide.

Unpermitted work and the state building code

The Massachusetts State Building Code is 780 CMR. Its first chapter says it is unlawful to build, alter or repair a building, or to change its use, without first filing an application and getting the permit. Starting work before the permit is itself a violation that can bring penalties. These are the parts that come up most when a house is sold:

Typical trouble spots when a house is sold: a finished basement or attic used as a bedroom, an added bathroom, a deck, a converted garage, or a second kitchen. Habitable space has to meet rules for exits, light and air, which is why the building official looks at them. A second unit raises zoning questions too; see our guide to selling a house with an in-law apartment.

Closing out old unpermitted work

The code does not describe an "after-the-fact permit" by that name, so we cannot give you one state process. How a town closes out old work is local, and Melrose, Malden, Medford and every other town set their own fees and paperwork. Call the building department and ask three things: what application they need, whether they need drawings, and whether they will want to see inside walls. Get a contractor quote at the same time, so you know what the fix would cost before you decide.

Board of health orders and condemnation

The State Sanitary Code (105 CMR 410) sets minimum standards for housing, such as heat, water, kitchens, bathrooms, exits and pests. The local board of health enforces it. A house is "unfit for human habitation" when a condition poses such immediate harm that other remedies cannot be expected to fix it fast enough. If a board decides that, the process in 105 CMR 410.650 and 410.900 usually runs like this:

1. An inspection finds a condition that makes the house, or part of it, unfit.
2. The board serves a notice that it will consider a finding of unfitness and may order the owner to secure the house and the occupants to leave.
3. If someone lives there, the board holds a public hearing at least 5 calendar days after the notice, unless it decides in writing that the danger is so immediate that it cannot wait.
4. The board can issue a finding, an order of condemnation, an order to vacate and an order to secure.
5. If no one asks for a hearing within 7 calendar days of the order, or after the hearing, the house is placarded as unfit.
6. The placard stays until the board approves reuse in writing. No one may deface or remove it.

If a tenant lives there and the tenant is not the owner, the owner must provide comparable housing for the shortest of three periods: the rest of the lease, until the board says the home is suitable, or until the tenant finds permanent housing.

State law adds a few more points (MGL c.111 s.127B). The board can order the owner to vacate, clean up or comply with the code. If the owner refuses, the board can do the work at the owner's expense. A copy of the order goes to any mortgage lender or lien holder of record by registered mail, so your lender may already know. The statute applies the lien rules in MGL c.139 s.3A to the debt, so costs the town pays can become a lien on the property.

We found nothing in the sanitary code that bars selling a condemned house. The order and placard stay with the property until the board lifts them. A buyer who needs a mortgage will want that done first. A cash investor may buy as-is. Ask your attorney how the contract should handle the order.

Towns can also write tickets for by-law violations, up to $300 each as the town sets (MGL c.40 s.21D). The statute says that if a ticket is not paid, the enforcing officer decides whether to ask for a criminal complaint. We could not verify that an unpaid ticket becomes a lien, so ask the town clerk and the collector to show you everything outstanding.

Septic, smoke and CO, and lead: the sale-time items

A failed septic system is the most common money problem on this list. Under the state guide, an owner who fails inspection and decides not to sell must still repair the system within 2 years unless the board of health or MassDEP allows another schedule. A conditional pass covers parts that can be repaired, such as a cracked tank or broken pipe, but not a failed soil absorption system or a cesspool. The guide also lists a sale exception: the owner or buyer signs an enforceable agreement with the board of health to upgrade the system within 2 years after the transfer, if it is disclosed and binds later owners. Lenders and attorneys often prefer a fix before closing or money held back in escrow. See our Title 5 guide.

Lead matters to buyers with children. Under the Lead Law, if a child under 6 will live in a pre-1978 home, the owner must have it deleaded or under Interim Control within 90 days of taking title. Expect that buyer to ask what you know about lead. See our lead paint guide.

Fix it, or sell as-is: how to run the numbers

Three numbers decide this: what it costs to fix and close out the problem, how many months it takes, and what it costs to hold the house while you wait. The permit and inspection fees are part of the fix, and so is any drawing or engineer's letter the building department asks for.

Holding costs add up. The state Department of Revenue puts the FY2026 average single-family tax bill at $8,113 (Mass.gov DOR). That is about $676 a month in property tax alone, before the mortgage, insurance and utilities. It is a statewide average, not your bill.

How much less will an investor pay? Industry blogs quote 65% to 85% of market value for cash sales (FairOffer). That is one blog's range, not data for your town, and your discount depends on the house. To an investor an open violation is a repair cost. Get two or three written offers and ask each one what repair cost it assumed. Then compare the net, not the headline, with the cash vs listing comparison and the net proceeds calculator.

If an order has a deadline, ask the building department or board of health in writing whether a plan with a schedule is acceptable. Do not agree to a sale date that you cannot meet.