New York situation guide · Updated November 2026

Wholesaling Code Violation Properties in New York

Wholesaling code violation properties in New York means putting a building with open city violations under contract in a market such as New York City, then handing the contract to a buyer who can cure them. Violations often follow the property, so your price must include the cost and the delay. Check every record and be open about your role.

Violation researchCost to cureQueens example

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The short answer

Can you wholesale a code violation property in New York?

Generally yes. Assigning a contract on a building with open violations is ordinary wholesaling, if the seller knows your plan. In New York City the real work is research: pull the violation history, price the cure, then let an attorney read the contract.

City violations are public, and that is your advantage. Search the address on NYC Open Data and in the city’s property records before you call the owner. You will see which agencies cited the building, what is still open and how old each item is. Build a list with code violation leads, and our owner lookup guide shows how to reach the person behind an LLC.

Where does the legal line sit? No wholesaler-specific law in force turned up in this research. Selling your own contractual rights is commonly viewed as lawful, while paid brokerage without a license is the concern. Read is wholesaling legal and license rules for wholesaling.

Code Violation Properties in New York at a glance

Typical seller	Small landlord or owner who ignored notices
Record source	NYC Open Data and city property records
Violations	Generally stay with the building when it sells
Main risk	Unknown cost to cure and re-inspection delays
Disclosure law	Property Condition Disclosure Act, RPL Article 14
Closing style	Attorney-handled, with a 10% deposit common downstate

The opportunity

Why violations create openings in New York City

Owners of outer-borough one- to four-family houses can fall behind on repairs and notices, especially after a tenant dispute or a death in the family. Buyers who know the agencies and have a licensed contractor can resolve violations at a predictable cost. Most casual buyers do not want that risk, which is why a clear package earns a fee.

Public data

You can check records before spending money on a lead, which saves time on houses with cheap problems.

Motivated owners

Repeated notices and mounting costs push some owners to sell as-is.

Contractor-led buyers

Investors with their own crews and expediters value a list of open items and a fixed scope.

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Lead sources

Where to find code violation leads in the five boroughs

Open data lists. Filter city violation data by borough, class and age, then match owners. See skip tracing.
Tax lien sale lists. The city’s June 3, 2025 lien sale used $5,000 property-tax thresholds for most properties, so owners near those debts may be stressed.
Neighborhood drives. Look at scaffolding, boarded windows and tarps in Jamaica, Brownsville and Morrisania. Try driving for dollars.
Estates. Heirs often inherit open violations along with the house. See our heirs guide.
Landlord mail. A short letter to tired owners can work well. See direct mail and yellow letters.

Your exit

Who buys properties with violations in New York City

Buyers are usually investors with construction experience, small developers and landlords who already manage buildings. They will ask for the violation list, any certificates of occupancy on file and a count of units.

If a buyer needs funding for a fast close, see double closing and transactional funding. Double closings add a second round of transfer taxes and fees, so compare it with a plain assignment and read our transfer tax guide.

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Step by step

How to start wholesaling code violation properties in New York

Pull the records. Search open violations, their class and their dates for the address.
Check ownership and title. Order a title search and read about doing a title search.
Scope the cure. Get a contractor to price each open item, and review certificates of occupancy.
Run the numbers. Plug cure costs into the ARV calculator and MAO calculator.
Contract carefully. Include assignment wording and a diligence period; this offer guide has samples.
Share the package. Give buyers the records, the scope and the timeline.
Close through counsel. Retain a New York real estate attorney, and ask an investor-friendly title company about title.

Your checklist for wholesaling Code Violation Properties in New York

Save a dated copy of every violation record you rely on.
Do not state that violations are cleared unless the city shows it.
Price in delays for inspections and re-inspections.
Compare any assignment with a double closing for tax cost.
Check for tenants, because they affect access and timing.

A New York example: a two-family with open violations in Jamaica, Queens

Finished value (ARV)	$820,000
Violation cure	$38,000
Renovation	$102,000
Contract price	$470,000
Assignment fee	$22,000
Time to close	75 days

A landlord in Jamaica inherited a two-family from her father. Letters from the city kept arriving, and a tenant had left. She did not want to run a repair project.

You searched the address, counted several open items and got a contractor to price the cure at $38,000. A further $102,000 of renovation brought the cost to $140,000. Against an $820,000 finished value, $470,000 became your offer.

A Queens investor took over the contract for a $22,000 fee. The deal closed in 75 days with attorneys on both sides. Treat the numbers as a sketch.

New York rules to know

Violations, taxes and foreclosure-related rules

Violations are generally tied to the building, so the buyer inherits the clean-up. That makes full disclosure of what you found a basic safeguard. Under RPL 465, a seller who provides or withholds the Property Condition Disclosure statement is liable only for willful failure, but your buyer will still rely on your records. Check current text, and see our transfer tax notes.

State transfer tax under Tax Law 1402 is generally paid by the seller, and the mansion tax under 1402-a applies to residential sales of $1 million or more, usually on the buyer. New York City adds its own taxes, so ask an attorney. A seller in default can also bring RPL 265-a into play, which lets a covered owner cancel for 14 business days after signing, so plan your closing date around that.

Learn it with a mentor

Learn to read a violation report

A violation list is only useful when you can price each item. In mentorship you send us the records and bids, and we help sort cheap fixes from deal killers.

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FAQ

Code Violation Properties in New York: common questions

Is wholesaling code violation properties in New York legal?

It is generally lawful when you contract as the buyer and assign your own rights. The research located no wholesaler-specific New York law. The Department of State licenses brokers, so being paid to find a buyer for someone else’s property deserves an attorney’s opinion.

Do code violations transfer to a new owner?

In most cases they stay with the building, so a buyer should expect to cure open items. Confirm the current record at the time of contract and again before closing, and avoid saying they are cleared unless the city shows that.

How do I find violation records in New York City?

Start with NYC Open Data and the city’s property records, which let you search by address. Save dated copies, note the agency and class of each item, and confirm status again before closing, since records can change between contract and deed.

Should I use a double closing instead of an assignment?

Maybe, but it costs more. A double closing means two deeds and two rounds of transfer tax, title and recording fees. Compare the total cost with a plain assignment, and ask your attorney and title company how they treat each option.

Does a lender’s 90-day notice affect my deal?

It can. RPAPL 1304 requires certain lenders to send a home-loan borrower a 90-day notice before suing to foreclose, which shapes how much time an owner has. Ask the seller what notices arrived, then have an attorney check current text before you price the deal.