If you’re buying a condo in the San Francisco or the San Francisco Bay Area, you’re probably hearing:

“This building has SB326 issues… it’s cash only.”

That’s not always true.

But here’s what’s really happening behind the scenes…

🔍 There Are Actually 3 Layers (Most Buyers Only Hear About One)

1️⃣ SB326 — The Inspection Law

Structural inspections of:

  • Balconies
  • Decks
  • Walkways

One thing I probably should have mentioned earlier… SB410 is now requiring these reports to be disclosed to buyers, which is part of why this is coming up more often.

SB326 Condo Problems in California? You May NOT Need to Pay All Cash

2️⃣ SB 410 California — The Disclosure Law

Now requires:

👉 The inspection report must be given to buyers

Meaning:

  • Issues are no longer hidden
  • Deals fall apart faster if misunderstood

3️⃣ San Francisco Housing Code Section 604 — Local Compliance

This is where things get very real locally.

The Compliance Affidavit requires a licensed professional to confirm:

  • Exterior elements are safe
  • Or identify issues requiring action

👉 As shown in this affidavit, https://s3.amazonaws.com/production-attachments/1093667912449153_bc6faa701c71b2d53c8eacb97238c1bd.pdf

it verifies:

  • Decks, balconies, stairways, guardrails
  • Are safe OR require remediation

🚨 Why Deals Are Falling Apart

It’s not just SB326 anymore.

It’s:

  • Inspection findings
  • Mandatory disclosures
  • Local compliance documentation

👉 And lenders reacting differently to all three

💡 The Opportunity (Most Buyers Miss This)

When deals fall apart due to confusion:

👉 Competition drops
👉 Sellers get nervous
👉 Prices soften

But informed buyers can still win.

🏦 The 3 Financing Paths

  • Option 1: Full doc / HOA cooperation
  • Option 2: Flexible “subject unit focus” loan
  • Option 3: High flexibility / lower LTV

👉 The difference now:
You understand WHY the deal looks risky — and how to navigate it

🎯 Bottom Line

SB326 doesn’t kill deals.

SB410 doesn’t kill deals.

SF 604 doesn’t kill deals.

👉 Misinterpretation does.

Please feel free to reach out when you have a scenario to discuss.

🔎 BROKER’S EDGE – Smarter Real Estate Lending
🤝 Looking out for your Best Interest, and Helping Homeowners, Investors & Small Business Owners since 1990

📞 Steven Hook | Residential & Commercial Mortgage Broker

📱 415-260-9376 | 📠 415-449-3428

🎓 MBA | CMPS | CMA

👉 Schedule a Call
🌐 SanFranciscoLoanOptions.com
🌐 shook@Uamco.com or smhloans007@gmail.com

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This content is provided for informational purposes only and is not a loan commitment or guarantee of financing. Loan programs, rates, terms, and conditions are subject to change and borrower qualification. Individual results may vary.

Posted in Condominiums, First Time Real Estate Buyers, Tips and Tricks, Uncategorized, Unique Loans