Purchasing real estate in the greater Philadelphia region, whether in the city itself, the surrounding Pennsylvania suburbs, or across the river in South Jersey, is rarely a simple transaction. Every property carries its own history: prior owners, prior uses, and, in many cases, prior problems that were never fully resolved.
One of the most common and least understood issues a buyer may encounter is an existing zoning or code violation. Zoning and code violations do not disappear when ownership changes hands. If you are under contract on a property and discover that the current owner has been cited for unpermitted construction, an illegal use, or a building that does not conform to the code, you are not just inheriting a house. You may be inheriting a legal problem.
Understanding what that means, and what your options are, before you reach the closing table is essential.
What Is a Zoning or Code Violation?
A zoning or code violation occurs when a property is being used or maintained in a way that does not comply with the applicable zoning code or building and property maintenance standards. The rules differ depending on where the property is located.
In Philadelphia, zoning is governed by the Philadelphia Zoning Code and enforced by the Department of Licenses and Inspections, commonly referred to as L&I. In the Pennsylvania suburbs, including Montgomery, Bucks, Delaware, and Chester counties, each municipality maintains its own zoning ordinance, and enforcement is handled locally. There is no single countywide code. A property in Lower Merion Township operates under different rules than one in Doylestown Borough, even though both are in the suburban Philadelphia market.
In South Jersey, the same principle applies across counties like Camden, Burlington, Gloucester, and Atlantic. Zoning is strictly a municipal function, meaning the rules and enforcement practices can vary significantly from one town to the next.
Common examples of existing violations across all three markets include:
- An addition or garage conversion that was built without a permit
- A two-unit or three-unit building operating without the proper certificate of occupancy
- A commercial use operating in a residentially zoned district
- An accessory structure such as a shed or fence that exceeds code dimensions
- Landscaping, grading, or paving that was done without required approvals
Some of these violations are minor. Others are significant enough to affect the property’s value, its insurability, and your ability to finance the purchase.
Why Violations Follow the New Owner
Many buyers assume that a violation issued against a prior owner is that owner’s problem to resolve. That assumption is incorrect.
In Philadelphia, L&I violation notices run with the property, not with the individual who received them. When title transfers, the new owner steps into a situation where the city can continue to pursue enforcement, issue fines, or require corrective action. In the Pennsylvania suburbs and across South Jersey, municipalities have the same authority to compel a new owner to bring a property into compliance, regardless of when the violation originated or who caused it.
If you do not know about a violation going into closing, you could find yourself facing fines, stop-work orders, or a required abatement at your own expense shortly after you take title.
How Violations Are Discovered
The typical purchase transaction involves a title search, but a standard title search does not always surface open zoning or code enforcement matters. This gap is important, and buyers and their counsel should address it directly.
In Philadelphia, a municipal lien search can reveal open violations, outstanding fines, and L&I judgments that have attached to the property. However, not all violations result in a filed lien. Some are open complaints sitting in the city’s system that have not yet resulted in formal enforcement action.
In the Pennsylvania suburbs, the process varies considerably by municipality. Some townships and boroughs respond quickly to written inquiries about open code enforcement matters. Others require more legwork. Buyers and their attorneys should contact the local code enforcement office directly during the due diligence period rather than relying on the title search alone.
In South Jersey, many municipalities require a certificate of continued occupancy, commonly called a CCO, a resale inspection, or a similar approval as a condition of any property transfer, but practices vary. Buyers should confirm early in the transaction whether a CCO is required, because the inspection can uncover violations that complicate or delay the closing timeline.
The Real Risks at Closing and After
If a violation surfaces before closing, the question becomes who is responsible for resolving it. That answer depends entirely on what the purchase agreement says.
A contract that is silent on existing violations puts the buyer in a difficult negotiating position. A well-drafted agreement of sale should address what happens if a municipal inspection or title search reveals open code violations, including which party bears the cost of correction and whether closing can be delayed or the purchase price adjusted.
Even when a violation is known and disclosed, the resolution may not be simple. Correcting a zoning or code violation often requires a permit application, a contractor, a reinspection, and sometimes a formal hearing before a zoning or code enforcement board. In Philadelphia, certain unpermitted uses or structures may require a variance from the Zoning Board of Adjustment. In the Pennsylvania suburbs and South Jersey, you can seek relief through the local zoning hearing board or board of adjustment in the relevant municipality. Either way, the process takes time and carries no guarantee of approval.
Practical Solutions for Buyers
If you are under contract on a property with a known violation, you have several options, and the right one depends on the nature of the violation and the state of the negotiations.
- Negotiate a price reduction. If the cost to remediate the violation can be estimated with reasonable accuracy, the buyer and seller may agree to a reduction in the purchase price that accounts for the buyer’s anticipated expense.
- Require the seller to cure. Depending on how the agreement of sale is drafted and what contingencies apply, the buyer can demand that the seller resolve the violation before closing. This is often the cleanest outcome but can delay the transaction and may not be feasible if the violation requires a lengthy permitting or variance process.
- Use an escrow holdback. If the parties want to close on schedule but the violation cannot be resolved beforehand, a portion of the seller’s proceeds can be held in escrow to fund the remediation after the fact. This approach requires careful drafting and agreement from the title company.
- Walk away. If the violation is severe enough to affect habitability, occupancy, or the property’s intended use, and the agreement of sale includes an applicable contingency that has not yet expired, it may be appropriate to terminate the contract within the applicable contingency period.
What to Do Before You Sign
The most effective way to protect yourself from an inherited zoning or code violation is to investigate before the contract is finalized or, at minimum, before your contingency period expires.
For Philadelphia properties, have your attorney request a full municipal lien search and review any open L&I records. For suburban Pennsylvania properties, reach out to the local municipality directly and confirm whether any open code enforcement matters are on file. For South Jersey properties, confirm whether the municipality requires a CCO, resale inspection, or similar pre-transfer approval, and, if so, schedule it early so there is time to address any findings without jeopardizing the closing.
Zoning and code issues are almost always more manageable when they are discovered early. The later they surface, the fewer options you have.
If you are purchasing property in Philadelphia, the surrounding Pennsylvania suburbs, or South Jersey and have questions about zoning violations or what they mean for your transaction, reach out to Joseph Console at Joe@ConsoleLegal.com.
The information contained in this post is provided for general informational purposes only and should not be construed as legal advice on any matter. No attorney-client relationship is formed by reading this content. Always seek the guidance of a licensed legal professional regarding your specific circumstances.