Understanding California Senate Bill 326 For Condo Owners and Sellers

By Dave Knight

Dave Knight, our Specialist, started his career in real estate back in 2007 and quickly became a top-producing Agent at Keller Williams.

Most condo sellers focus on the usual parts of the process, like pricing, showings, and getting through escrow. What many don’t realize is that one HOA issue can suddenly slow everything down, even when the buyer is ready, and the deal seems close to the finish line. In California, that issue may be the Senate Bill 326 inspection.

A sale can be moving along just fine, and then a lender asks one simple question: Has the HOA completed the required balcony inspection? If the answer is no, the timeline can change fast.

What does SB 326 require? California Senate Bill 326 requires homeowners’ associations to inspect exterior elevated elements such as balconies, decks, and walkways. The purpose is to make sure these structures are safe and in good condition. The law was created after a tragic building failure, so the goal is clear and important.

For condo owners, the issue is whether the HOA has actually completed the inspection. Many owners assume it has already been handled, but that is not always the case. In some communities, the inspection may still be pending even though it should have been completed already.

How does the issue show up during a sale? This often becomes a problem during escrow, when the buyer’s lender starts reviewing the property and the HOA documents. If the lender asks whether the SB 326 inspection has been completed, and the answer is no, the transaction may not be able to move forward until that requirement is addressed.

That can mean scheduling the inspection, waiting for the inspection company, and then waiting again for the report and any review or approval that follows. If there are scheduling delays or missed appointments, the closing timeline can stretch much longer than expected.

Why does this create stress for everyone? A delay like that affects more than just your timeline. Sellers may already be packed, moved out, or counting on the closing date for their next step. Buyers can become uneasy when the transaction stalls, especially if there is no clear answer on when things will be resolved.

The frustrating thing is that the problem may have nothing to do with the unit itself. The sale can be delayed by a missing HOA inspection that no one checked early enough. It is a small detail at the start, but it can become a major obstacle later.

What sellers should do before listing? If I were preparing to sell a condo, one of the first things I’d want to know is whether the HOA has completed the SB 326 inspection to save time and avoid stress later.

If it has been completed, make sure the documentation is available. If it has not been completed, it is better to know that early than to find out once escrow is already underway.

Selling your condo shouldn’t come with unexpected delays. By checking your HOA’s SB 326 inspection status early, you can avoid last-minute issues and keep your sale moving smoothly.

If you’re getting ready to sell and you have questions, feel free to call or text me at 626-408-2890 or email me at daveknight@kw.com. I can help you identify potential issues early and plan the right steps for a smoother sale.