We were recently asked by a client a really good question about wording in the balcony bill, SB 326 regarding our interpretation of the section where it states “This section shall only apply to buildings containing three or more multifamily units ” The client’s buildings have only 2 units per building.

We aren’t attorneys, but we did stay at a Holiday Inn Express last night… Sorry that’s a joke… We aren’t able to give legal advice even though we think we know the answer…

Being that we aren’t attorneys we turned to one of the preeminent authorities in the business, Mr Adrian Adams of Adams Stirling PC who runs Davis-Stirling.com and asked Adrian.

SMALL BUILDING
BALCONY INSPECTIONS

QUESTION: 

SB 326 states that “This section shall only apply to buildings containing three or more multifamily dwelling units.” Our association has twenty buildings, with only two condos per building. Does that mean we don’t need to inspect our balconies? -Bill

ANSWER: Even though you have 40 balconies (20 buildings times 2), a strict reading of the statute exempts your association from the requirements of invasive inspections. (Civ. Code § 5551(l).) Even though you are exempted, you still need to make visual inspections every three years for your reserve study requirements.

The problem with external visual inspections is that they are external. They can’t detect dry rot and termite damage to a balcony’s structural elements. If any of your balconies collapse causing injuries or deaths, it is almost guaranteed your association will be sued.

Plaintiffs will seek a jury trial and allege the board was negligent in their maintenance obligations and their failure to properly inspect balconies when every other association in the state was performing invasive inspections. A jury would likely agree with plaintiff’s counsel and award substantial damages to the victims. The litigation will negatively impact property values, the buying and selling of units, and insurance premiums. Moreover, the failure of one balcony means all balconies will need to be inspected either during or after the litigation.

RECOMMENDATION: It is less expensive to conduct a § 5551 inspection of your elevated structures than to defend against a wrongful death action. If the inspection finds problems, you can address them and avoid potential harm to residents. If the inspection determines your balconies are in good shape, it provides a layer of protection for the association (and directors) in the event one were to collapse. In addition to inspections, you should institute a regular plan of preventive maintenance and  balcony repairs.

The above information is copyrighted. Reprinted from Davis-Stirling.com by Adams|Stirling PLC

We completely concur with Adrian… My answer back to the client was in the form of a question… Are you willing to find out in a court of law if a jury thinks those balconies are exempt? I think your insurance company is just going to ask how many zeros do there need to be on the check that they write for a wrongful death suit?

It’s not worth the risk to try to avoid an inspection when the stakes are so high. Get in touch with us today about your balcony inspection needs and let us help guide you through the process. We guarantee in writing that a structural engineer performs the inspection in person and that we have no conflicts of interest. Our only interest is you, our client.