Your SB 326 Inspection Is Complete.
California condominium associations have spent considerable time and money inspecting balconies, decks, stairways, and walkways under Civil Code § 5551, commonly called SB 326. Once an inspection identifies needed work, the next question is just as important: Can the association show which findings were addressed and what work was completed?
This matters to residents using the structures, boards planning future repairs, owners preparing to sell, and insurers reviewing the property. Since January 1, 2026, the most recent § 5551 inspection report is among the documents an owner must provide to a prospective purchaser under Civil Code § 4525. A report may identify a condition that has since been repaired. Clear follow-up records help explain what happened after the inspection.
The years between required inspections matter
For covered condominium buildings, the first SB 326 inspection was due by January 1, 2025, with inspections every nine years thereafter in coordination with the reserve study inspection. For an association on that original schedule, the next inspection would be due in 2034. A different initial deadline can apply to buildings whose permit application was submitted on or after January 1, 2020: inspection is due no later than six years after the certificate of occupancy. Associations should track their own applicable schedule.
The nine-year cycle is an inspection schedule, not a nine-year pause on repairs or documentation. An association that fixes a reported condition in 2026 may still have to provide its most recent inspection report in a 2030 sale. Without records showing the repair, the report alone can leave an outdated impression that the problem remains open.
Build a record for each affected location
For each repair, start with the building and unit or element identifier used in the inspection report. Keep a simple log showing the inspector’s finding, the recommended work, the date work was authorized, the contractor, the completion date, and the status of any follow-up review. If work is still pending, say so plainly.
Ask contractors to describe their work by location and scope on proposals, invoices, and completion records. “Balcony repairs” across an entire community is difficult to reconcile with an inspection finding for a particular unit. A more useful record identifies the location and describes the waterproofing, structural, or related work actually performed. Retain before-and-after photos, applicable permits and inspection signoffs, warranties, and any written confirmation from the architect or engineer when the repair calls for professional review.
Keep inspection findings and repair status distinct
Do not change the inspector’s original report to make a repaired condition disappear. Preserve the signed report and maintain a separate repair log or completion summary that points to the supporting records. This lets a reader see both what the inspector found at the time of inspection and what the association did afterward.
Keep that summary with, or clearly cross-referenced to, the inspection report and update it as work progresses between inspection years. A status of “complete” should be supported by the relevant records; a contractor invoice by itself may not establish that a structural or safety concern was resolved.
Civil Code § 5551 requires the association to retain its written inspection reports for two inspection cycles. It does not expressly require attaching every contractor invoice to the report. A location-specific repair file is a practical recordkeeping measure that helps a board answer questions and provide an accurate project history.
How missing documentation can affect escrow and insurance
When a unit is sold, the buyer receives the most recent inspection report. If it describes a significant problem but the association cannot readily show what happened next, the buyer, escrow team, or lender may seek more information. Some lenders apply condominium project eligibility rules that require evidence that critical repairs identified in an inspection have been completed; Fannie Mae specifies that the lender review an engineer’s report or a substantially similar document to determine whether the work resolved the concern. Missing proof can therefore delay a loan review or create an eligibility problem, depending on the finding and the loan. A paid invoice alone should not be presented as an engineer’s clearance.
An insurer or broker may also ask about known building conditions and repairs when evaluating or renewing the association’s coverage. A dated inspection report that lists defects, with no organized record of completed work, makes the association’s current condition harder to establish. Documentation does not guarantee coverage or a particular premium, but it gives the association a reliable basis for answering underwriting questions accurately. Confirm any insurer-specific documentation request with the association’s broker.
Treat immediate safety hazards differently
If an inspector identifies an immediate threat to occupant safety, § 5551 requires immediate preventive measures, including preventing access to the affected element until repairs have been inspected and approved by the local enforcement agency. An invoice or a contractor’s statement that work is complete does not replace that approval. Follow the inspector’s findings and the agency’s direction before reopening the area.
A useful handoff for owners and future boards
When the project is complete, the association should be able to answer three straightforward questions: What did the report identify? What was repaired, and where? What remains open? A concise status summary backed by the actual work records helps with homeowner questions, future maintenance, reserve planning, and sale disclosures.
For boards beginning repairs now, set these documentation expectations in the contractor’s scope before work starts. Reconstructing a unit-by-unit history months later is much harder than recording it as the work is done.
Comments