If you’re selling a condo, understanding the Senate Bill 326 (SB-326) inspection report is crucial. This report evaluates the safety of exterior elevated elements (EEE), like balconies and stairways, in your condo association. Here’s why it’s important for sellers, using Cascade Gardens in San Diego as an example.
What is SB 326?
SB 326 requires a licensed structural engineer to inspect load-bearing elements that extend beyond the building walls, like decks and balconies, to ensure they are safe and meet building standards. The inspection focuses on elements that are crucial for structural integrity and safety every 9 years.
This applies only to condos, not planned unit developments (PUDs), starting January 1, 2025.
• Inspection Details: The inspection evaluates the condition of elevated exterior elements through visual and possibly destructive testing. It prioritizes any necessary repairs: high-priority issues must be fixed immediately, while medium and low-priority issues have a 2 to 10-year timeline.
• Why It Exists: Following a tragic balcony collapse in Berkeley in 2015, which exposed structural flaws, SB-326 was enacted to prevent future incidents. An initial inspection is required by December 31, 2024.
How Does This Affect Sellers?
- Safety Ratings: The inspection report includes a rating system from 0 to 3, with 0 indicating danger and 3 being good. In the Cascade Gardens report, there were no dangerous (0) ratings, which allowed the sale to proceed without needing repairs before closing. This is a great advantage for sellers, as it can speed up the selling process.
- Financing and Buyer Confidence: A favorable SB-326 report can boost buyer confidence and make it easier to secure financing. Buyers and lenders are reassured when they see that the property meets safety standards without immediate repair needs.
- Get the Report Early: Having access to the SB-326 report early in the process is beneficial. It provides a clear picture of the property’s condition and can prevent last-minute surprises that might delay closing.
Here’s the detailed findings from Cascade Gardens Community Association in Berger Ave, San Diego for better understanding:
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Shirin Rezania Ramos | 858.345.0685 | www.shirinramos.com | Compass, DRE 0203379
