California has enacted Senate Bill 410 (SB 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 (SB 326) be provided to prospective purchasers by sellers as part of the statutory resale disclosure process. In turn, homeowners associations will need to provide the reports to sellers to assist the seller in meeting the disclosure obligations.

Civil Code section 5551, enacted through SB 326, requires associations governing multifamily common interest developments to conduct periodic inspections of exterior elevated elements such as balconies, decks, stairways, and walkways. These inspections must be performed by a licensed structural engineer or architect and documented in a written report retained by the association.

Civil Code section 4525, which governs the documents a seller must provide to a prospective purchaser, has been amended 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 seller’s disclosure obligations in applicable transactions.

Further, Civil Code sections 5200 and 5210, which define and regulate access to “association records,” have been amended to clarify that SB 326 inspection reports are included within the scope of records subject to member inspection and copying.

For anyone who has seen an SB 326 inspection report, it can be intimidating. Frequently, they include safety concerns that should be addressed immediately. When addressed, the SB 326 report remains unchanged. In other words, the report may be misleading because it does not indicate which issues have been resolved, which are planned for repair, and which will be handled during normal maintenance cycles. Creating a companion piece to the SB 326 report that explains the status of repairs could significantly reduce inquiries from potential buyers and lenders and provide a more accurate picture of what lies ahead.