Virginia situation guide · Updated November 2026

Wholesaling Code Violation Properties in Virginia

Wholesaling code violation properties in Virginia means contracting for homes that a city has cited for overgrown yards, unsafe structures or unpermitted work, then assigning the deal to a buyer who can cure the problems. Owners in Richmond and other cities often face fines and liens they cannot pay. A wholesaler who understands the paperwork can help, as long as the licensing rules are followed.

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The short answer

Can you wholesale a code violation property in Virginia?

Yes, you can contract for a cited property and assign it, but licensing limits can apply and open liens must be handled at closing. Order a title search early so you know what the city has recorded.

A code violation is a notice from the city that a property breaks a local rule. It may be tall grass, a collapsing porch or a trash pile. Fines and abatement costs can turn into liens, and owners often feel stuck. Start with our code violation leads guide and our title search guide.

Va. Code 58.1-3965 ties some local liens and condemned, derelict or blighted structures to a shorter tax sale timeline, so cited properties can face a faster clock. Check current rules with the city treasurer. Your own risk is licensing: 54.1-2100 says assigning contracts for compensation on two or more occasions in 12 months can meet the broker definition. See the license guide.

Code Violation Properties in Virginia at a glance

Local liens	Fines and abatement costs can be recorded against the property
Tax sale	58.1-3965 can shorten the timeline for some cited structures
Seller form	The state disclosure statement is a buyer-beware disclaimer
Pending violations	Addressed in 55.1-706
Licensing	Repeat assignments can trigger broker rules
Closing	Payoff of liens at settlement, usually through an attorney or title agent

The opportunity

Why code cases create deals in Richmond

Richmond has many older rowhouses and neighborhoods where owners fell behind on upkeep, such as parts of Southside, Church Hill and the East End. Some are heirs, some are landlords, and some are seniors who cannot manage repairs. A cited house may be hard to finance, and the fines keep growing. A cash buyer who can clear the violations may see value. If you explain the path to the owner, you can solve a real problem. Our ARV guide shows how to value the repaired home.

Pressure on owners

Fines, liens and court dates push owners to sell. Our motivated seller guide explains how to listen.

Cash buyers wanted

Lenders often avoid cited homes, so investors with cash and crews fill the gap.

Clear scope

Violation notices list what must be fixed. Price it with the repair cost guide.

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Lead sources

Where to find code violation properties in Richmond

City records. Many cities publish lists or maps of open cases. Check what Richmond posts.
Driving for dollars. Look for notices on doors and neglected yards. See driving for dollars.
Tax delinquent owners. Unpaid bills often travel with violations. Use the tax delinquent lists.
Absentee owners. Out-of-town owners may not know a notice was issued. See absentee owner leads.
Heirs. Inherited houses may carry old citations. The heirs’ property guide explains title risks.

Your exit

Who buys code violation properties in Virginia

Rehabbers and landlords who know the local permit office buy most cited houses. They can cure the violations, pull permits and finish the work. Some buyers prefer homes with a clear list of defects. Match the house to the buyer with our buy box guide.

Tell buyers about the notice, the fines and any court date. Share the citation and give them time to call the city. Ask your title company to find liens and payoff amounts, and check our title company guide for who to call.

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Step by step

How to start wholesaling code violation properties in Virginia

Get the notice. Ask the owner for every citation, letter and court paper.
Check the city file. Call the building office to confirm what is open and what fines are owed.
Order a search. Use a title company, and read how to do a title search.
Run the math. Use the ARV calculator and MAO calculator, with fines and repairs included.
Sign and disclose. Use wholesale offer language and state that you may assign.
Market the deal. Send the citation list and photos to cash buyers.
Close and pay liens. Pay recorded liens from proceeds. See working with an attorney.

Your checklist for wholesaling Code Violation Properties in Virginia

Collect every citation and notice.
Order a title search for recorded liens.
Confirm fines and payoff amounts with the city.
Count your assignments over the past 12 months.
Give buyers time to review the notices.

A Virginia example: a cited rowhouse in Richmond

Owner expectation	$140,000
Contract price	$85,000
City fines and liens	About $6,200
Repairs and permits	$42,000
Finished value	$205,000
Assignment fee	$9,000

A landlord in Richmond owned a vacant rowhouse with a rotted porch and a sagging roof. The city had cited it twice, and the fines had been recorded against the title. He had stopped answering calls from the city.

You pulled the file, ordered a title search and priced repairs at $42,000. With fines near $6,200 and a $205,000 finished value, you offered $85,000 and wrote that you might assign. The landlord was glad to be rid of the case.

A rehabber paid you $9,000 to take the deal. The fines were paid from the seller’s proceeds at closing. You logged this assignment so you would know your count for the year.

Virginia rules to know

Liens, tax sale timing and licensing

Pending building or zoning violations are addressed in Va. Code 55.1-706, and the state disclosure statement under 55.1-703 is a buyer-beware disclaimer. Under 58.1-3965, cited structures that are condemned, derelict or blighted can face a first-anniversary tax sale timeline, and a property assessed at $100,000 or less can go to public auction. Owners can redeem before the sale date. Check current rules with the treasurer.

Licensing is separate. Va. Code 54.1-2100 says that dealing in assignable contracts for compensation twice or more in 12 months can fall under the broker definition, and the owner exemption in 54.1-2103 can be narrow. Confirm your plan with DPOR or an attorney. Our legality guide gives more background.

Learn it with a mentor

Read the file before you bid

City files and lien payoffs change the math. Mentorship students send us their notices and numbers, and we help them decide what to offer.

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FAQ

Code Violation Properties in Virginia: common questions

Is wholesaling code violation properties in Virginia legal?

It can be, if you follow licensing rules and are honest about what you know. Repeat assignments can require a broker license, so check with DPOR. Disclose the code issues you know about, and have a Virginia attorney review the contract before you market a cited house.

Who pays code fines at closing?

Recorded liens are usually paid from the seller’s proceeds, and your title company will show payoff amounts. Ask the city what is on record for the address before you set a price, since open fines and unresolved citations change what the owner nets and what a buyer will offer.

Can a city sell a cited house for taxes?

Under 58.1-3965, some cited, condemned or derelict structures can be sold on a shorter timeline. Check current rules with the treasurer. This matters if taxes are also behind, because a cited house may move faster toward a sale than an owner expects, so confirm the dates early.

Can the owner stop the sale?

Owners can generally redeem before the sale date by paying what is due. That means a deal tied to a tax sale can fall away if the owner catches up, so confirm status with the treasurer shortly before closing and avoid promising a buyer a property that is not yet certain.

Do I need an attorney?

It is wise. A Virginia attorney can review the contract, the liens and your licensing exposure. Cited houses add city notices, possible recorded fines and tax questions to the usual paperwork, so legal review is cheap compared with a deal that stalls over a lien nobody checked.