Updates on Balcony Bill Inspection Reports Recommended in Light of New Disclosure Requirements (SB 410)


Denise Iger, Esq., Iger Wankel, LLP


California has enacted Senate Bill 410, which expands disclosure obligations for homeowners associations and sellers in common interest developments. Effective January 1, 2026, SB 410 amends several provisions of the Davis–Stirling Common Interest Development Act to require that exterior elevated elements inspection reports prepared pursuant to Civil Code section 5551 be provided to prospective purchasers by sellers as part of the statutory resale disclosure process. Homeowners associations, in turn, will need to provide the required inspection reports to sellers so that sellers can comply with their disclosure obligations.


Civil Code section 5551, enacted through Senate Bill 326 and commonly referred to as the “Balcony Bill,” requires associations to conduct periodic inspections of certain exterior elevated elements, which can include balconies, decks, stairways, and walkways. These inspections must be performed by a licensed structural or civil engineer or architect and documented in a written report that is retained by the association.


Senate Bill 410 amends Civil Code section 4525, which governs the documents a seller must provide to a prospective purchaser, to expressly include the most recent exterior elevated elements inspection report. As a result, delivery of the SB 326 report is now a mandatory component of the resale disclosure package in applicable transactions. In addition, Civil Code sections 5200 and 5210, which define and regulate access to association records, have been amended to clarify that exterior


10 May | June 2026


elevated elements inspection reports are association records subject to member inspection and copying. Through the resale disclosure process, these reports will also be routinely provided to prospective purchasers.


Beyond disclosure obligations, Civil Code section 5551


imposes ongoing planning and financial requirements on associations. The statute requires that the findings of the exterior elevated elements inspection be incorporated into the association’s reserve study. Any required repairs or replacements identified in the inspection report must be reflected in the association’s reserve funding plan.


For those who have reviewed an exterior elevated elements inspection report, the content can be unsettling. These reports frequently identify safety concerns that warrant prompt attention. Once the recommended work is completed, however,


the


inspection report itself does not change. Over time, the report may therefore present an incomplete or misleading picture if it does not reflect which issues have been resolved, which are scheduled for repair, and which will be addressed through routine maintenance or reserve-funded projects. Preparing a companion document that explains the status of repairs and planned work can help provide important context, reduce questions from prospective buyers and lenders, and present a more accurate picture of the association’s condition and future obligations.


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