If you’re buying or selling a condo in Los Angeles, there’s a California law you need to know about, and it usually surfaces in the middle of escrow. It’s SB 326, often called the “balcony law.” Most coverage of it is written for HOA boards. This guide is for buyers and sellers.
What Is SB 326?
SB 326 was passed in 2019 after a balcony collapsed in Berkeley in 2015. Six people were killed and seven others were injured. The law added Section 5551 to California’s Civil Code.
It requires condo associations with three or more multifamily units to get visual inspections of a statistically significant sample of their exterior elevated elements, originally by January 1, 2025, and every nine years after that.
“Exterior elevated elements” include balconies, decks, stairways, and walkways that are more than six feet above the ground and supported by wood. The law covers both the load-bearing components and the waterproofing that protects them.
The obligation falls on the HOA, not individual owners. It still matters a great deal to anyone buying or selling a unit.
Why This Matters in Los Angeles
A large share of the Los Angeles area’s condo stock is wood-framed buildings with exterior balconies, open-air walkways, and outdoor stairs. That describes much of the inventory in Burbank, Glendale, Pasadena, Studio City, and Sherman Oaks. If you’re shopping for a condo here, SB 326 will likely apply to the building you’re considering.
The 2026 Change: Sellers Must Now Disclose the Report
This is the biggest update for buyers and sellers. SB 410 was signed on October 10, 2025 and took effect January 1, 2026. It requires condo sellers to give prospective buyers a copy of the most recent SB 326 inspection report.
Before SB 410, some argued that inspection reports didn’t need to be disclosed to homeowners or buyers. The bill, supported by the California Association of Realtors, settled that debate. The report is now part of the standard HOA disclosure package.
What Buyers Should Do
1. Read the report, not just the summary. Look for recommended repairs, deadlines, and any items flagged as urgent. A clean report is a good sign. A report full of deferred repairs tells you where the HOA’s money is going next.
2. Check whether the inspection was done at all. The deadline passed on January 1, 2025. If the HOA hasn’t completed its inspection, that’s a red flag about how the building is managed and a potential liability.
3. Compare the report to the reserve study. If the inspector recommended significant repairs, the HOA’s reserve study should show money set aside to pay for them. If it doesn’t, the likely outcome is a special assessment, which you would pay as an owner.
4. Ask about approved assessments. California’s HOA disclosures already include any assessment increases the board has approved but that haven’t come due yet. Read the SB 326 report alongside them.
5. Factor it into your offer. Known balcony or walkway repairs are a legitimate reason to negotiate price or request credits.
What Sellers Should Do
1. Request the report from your HOA early. Don’t wait until you’re in escrow. The HOA supplies the documents to the owner on request, and the seller then provides the package to the buyer. The HOA can charge a fee for this.
2. Know what’s in it before buyers do. If the report shows major repairs coming, you’ll want to price and prepare accordingly rather than be surprised by a buyer’s reaction.
3. Be ready to answer questions. Buyers and their agents will ask about repair timelines and assessments. Having answers ready keeps the deal moving.
Related reading: what LA sellers must disclose and what to look for when touring a house in LA.
The Bottom Line
SB 326 is a safety law, and it’s a good one. For LA condo buyers and sellers, it also means one more document to read carefully and one more factor affecting price and costs. Read the report, compare it to the HOA’s finances, and don’t let a balcony issue surprise you in escrow.
Buying or selling a condo in Los Angeles? I help buyers read HOA documents before they commit, and I help sellers prepare disclosures before they list. Contact me to talk through your situation.
This article is for educational purposes only and is not legal advice. For guidance on a specific property or HOA, contact a qualified real estate attorney.
Arman Boyadjian, CA DRE #02131891 · Compass, CA DRE #01991628 · Equal Housing Opportunity · Privacy Policy
