| 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. |
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| 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.
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| Make sure your next transaction is not affected! Stay educated about your next closing. |
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