Fwd: Understanding California Balcony Laws - SB 326 & SB 721

California Balcony Laws — primarily SB 326 and SB 721 — were enacted to improve safety for Exterior Elevated Elements (EEEs) such as balconies, decks, and stairways on multifamily residential buildings. Overview SB 326 Applies to Common Interest Developments like condominiums. HOAs must inspect and maintain EEEs by January 1, 2025 and every nine years after. SB 721 Applies to Multifamily Residential Buildings with three or more dwelling units. Owners of multifamily properties must complete their initial inspections by January 1, 2026, and every 6 years after that. What are EEEs? Exterior Elevated Elements are all elevated decks, balconies, landings, stairway systems, walkways, guardrails, handrails, or any parts thereof that are exposed to weather and with a walking surface more than 6 feet above grade/ground. This program applies only to wood-framed and steel-framed exterior elevated elements and not to concrete elements. Impact on Real Estate Transactions Disclosure Obligations Sellers are required to disclose the status of EEE inspections to potential buyers. Repair Obligations •  If defects are found, repairs may be required before close of escrow. •  Safety-related defects may legally require immediate action. Lender Requirements Some lenders require evidence of compliance or plans for compliance before approving financing. Escrow Delays •  Outstanding inspection or repair work can delay the closing timeline. •  Buyers may negotiate terms, request credits, or delay until compliance is met. Insurance and Liability Noncompliance can increase risk and lead to higher insurance premiums or even coverage issues. For more information on SB326, visit: https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201920200SB326 For more information on SB721, visit: https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201720180SB721 Information deemed reliable but not guaranteed. Chicago Title does not guarantee its accuracy. Make sure your next transaction is not affected! Stay educated about your next closing. Download a copy of this article

.