AB 1903 and San Diego condos: what buyers should know before their inspection

AB 1903 is dead. On September 1, 2026, the California legislative session ended without the Assembly taking a final concurrence vote on the bill, even though it had passed both chambers without a single "no" vote. Late Senate amendments sent the bill back to the Assembly, and the clock ran out before it was called to the floor.

What that means for San Diego condo buyers: the status quo holds. California's strict 10-year builder liability law under the Right to Repair Act (SB 800, enacted in 2003) remains fully in effect. Developers remain exposed to construction defect lawsuits for a full decade after completing a for-sale condominium project. And the market dynamics that have strangled new condo construction in San Diego for two decades will continue.

If you're buying a condo in San Diego County in 2026 or 2027, this reality shapes what's available to you, what risks you're taking on, and what your home inspector should be looking for. This guide covers the four inspection scenarios that AB 1903's failure creates for buyers.

The 10-year risk window: new construction condos under a decade old

In California, builders of for-sale condominium projects carry legal liability for construction defects for 10 years after the building is completed. The Right to Repair Act (Civil Code Sections 895 to 945.5) gives homeowners and HOAs a defined process for pursuing claims, and because AB 1903 failed, that process remains unchanged.

For buyers looking at condo buildings less than 10 years old, this creates a specific inspection dynamic. The building is still within the liability window, which means the HOA can still pursue the developer for defects. Some HOAs are actively preparing or already engaged in construction defect litigation. Others are monitoring conditions and considering their options.

What your inspector should focus on: Building envelope conditions are the primary concern. Flashing failures on balconies and at wall-to-roof transitions, stucco cracking and moisture intrusion, window seal failures that allow water into wall cavities, and drainage conditions that direct water toward rather than away from the structure are all common triggers for construction defect claims. Your inspector evaluates what's visible and accessible within your unit and from the building's common areas.

What you should investigate beyond the inspection: Ask the HOA for meeting minutes from the past 12 months. If the board is discussing construction defect claims, consulting with attorneys, or commissioning building assessments, that information affects your purchase. A construction defect lawsuit can result in special assessments, access disruptions, and uncertainty about the building's condition during the litigation process.

The luxury-rental conversion: condos that spent a decade as apartments

Here's a market dynamic that AB 1903's failure perpetuates. To avoid the 10-year lawsuit window, some San Diego developers build projects to condominium standards but operate them as luxury rental apartments for the first decade. Once the 10-year liability period expires, they convert the units to for-sale condos.

The development industry has been using this workaround for years. The Bosa Development project Andia in San Diego is one example of a developer pushing ahead with condos despite the liability environment, but many others have chosen the rental-first approach.

The inspection concern: A unit that was rented for its first 10 years has experienced a decade of tenant use before you buy it. Renters generally report maintenance issues less consistently than owners. Appliances, fixtures, and finishes that have been used by multiple tenants for a decade show different wear patterns than owner-occupied units.

What your inspector should focus on: Look past cosmetic updates. Fresh paint and new cabinet hardware don't tell you about the condition of the water heater, the plumbing supply connections, the HVAC system, or the interior of the drain lines. Test every appliance. Check under every sink for signs of slow leaks or previous repairs.

Evaluate the water heater's age and condition. Assess window and door operation (rental units often have deferred maintenance on hardware and weatherstripping).

If the building was converted from rentals, ask the HOA what building-wide assessments were performed before the conversion. Were the common-area systems (roof, exterior, mechanical, plumbing) evaluated? Were the individual units inspected before sale? The answers affect how much you know about what you're buying.

Older buildings: 20+ years and beyond the builder's liability

For condo buildings constructed during San Diego's mid-2000s building boom or earlier, the 10-year builder liability window has long closed. The developer is out of the picture. Every maintenance item, every repair, and every structural concern is now the responsibility of the current owners through the HOA.

What your inspector should focus on: System age and condition become the central concerns. In buildings over 20 years old, the original roof, HVAC equipment, plumbing, and electrical systems may be approaching or past their expected service life. Concrete balcony conditions are particularly important in coastal buildings where salt air and moisture accelerate deterioration. SB 326 requires condo associations to inspect exterior elevated elements on a recurring cycle.

Consider asking the HOA about planned capital projects. Older buildings often need roof replacement, plumbing system upgrades, elevator modernization, or exterior remediation within the coming decade. If those projects aren't reflected in the reserve study (or if the reserve is underfunded), the cost will come from special assessments levied on current unit owners, including you if you've purchased by then.

The physical condition of older buildings can also affect insurance. Master policies for older condo buildings may face non-renewal or increased premiums if the building has deferred maintenance, water intrusion history, or structural concerns. The insurance situation directly affects your monthly HOA dues and the building's financial stability.

A sewer scope inspection can evaluate the condition of the building's main sewer lines where accessible from your unit or a common-area cleanout. Older buildings with cast iron drain lines may have the same corrosion and deterioration concerns that affect single-family homes of the same vintage.

What you should investigate beyond the inspection: The HOA's financial health matters enormously in older buildings. Review the reserve study. A building with significant deferred maintenance and an underfunded reserve means the current owners (including you, if you buy) will face special assessments to pay for repairs the developer isn't responsible for and the reserve fund can't cover.

The paperwork inspection: what the physical inspection can't tell you

A home inspection evaluates the physical condition of your unit and the accessible common areas. But some of the most important information about a San Diego condo purchase lives in the documents, not in the walls.

HOA meeting minutes. Review at least 6 to 12 months of board meeting minutes. Look for discussions about construction defect claims or attorney consultations, planned special assessments or major repair projects, building-wide maintenance concerns (roof, plumbing, mechanical), insurance difficulties (non-renewals, premium increases, coverage limitations), and SB 326 or SB 721 compliance status.

Reserve study. The reserve study projects the building's anticipated capital expenditure needs and the funding available to meet them. A well-funded reserve means the HOA has planned for major repairs. An underfunded reserve means those costs will be covered through special assessments (unexpected bills to unit owners) when the repairs become necessary.

CC&Rs and governing documents. These tell you what you own, what the HOA is responsible for, and what restrictions apply. They also affect what your inspector can access. In some buildings, the inspector can only evaluate the interior of your unit, not the common areas, roof, or mechanical rooms.

Insurance documentation. Ask about the master insurance policy. Verify that it's current, understand what it covers, and check whether there are pending claims related to construction defects, water damage, or other building conditions. Insurance complications in condo buildings can directly affect unit owners' finances.

What AB 1903's failure means for the San Diego condo market

The practical effect of AB 1903's death is that nothing changes. Developers who were waiting for liability reform before building new condos will continue waiting (or building apartments instead). The supply of new for-sale condos in San Diego will remain severely constrained. And buyers who want to own a condo will continue choosing from a market dominated by aging existing inventory and converted-from-rental units.

For context: California YIMBY and other housing advocates have argued that the construction defect liability framework has been one of the primary reasons developers avoid building new condos. The counterargument, made by consumer attorneys and HOA groups who opposed AB 1903, is that the liability protection exists to ensure builders are accountable for construction quality, and weakening those protections would shift risk from builders to buyers.

Both arguments have merit. But the practical outcome for San Diego condo buyers is the same regardless of which side is right: limited new inventory, a market tilted toward rentals and single-family homes, and a buying process where the inspection and the HOA documents carry outsized importance.

Buyer strategy: how to navigate this market

Given the dynamics created by AB 1903's failure, here's a practical framework for San Diego condo buyers:

For buildings under 10 years old: Get the inspection. Review the HOA documents carefully, particularly meeting minutes and any legal correspondence. Understand whether construction defect claims are active, contemplated, or resolved. Factor the risk of special assessments into your budget.

For converted-from-rental buildings: Get the inspection with extra focus on appliance condition, plumbing connections, water heater age, and finish wear. Ask the HOA about building-wide system assessments performed before or during the conversion. Understand what was evaluated and what wasn't.

For buildings over 20 years old: Get the inspection plus a sewer scope if the building's plumbing is aging. Review the reserve study carefully. Calculate your exposure to special assessments by looking at the gap between the reserve fund balance and the anticipated capital expenditures. Ask about SB 326 compliance for buildings with exterior elevated elements.

For all buildings: Review the master insurance policy. Understand who is responsible for what (interior systems vs. common areas vs. building envelope). And talk to a real estate attorney if the transaction involves a building with active or contemplated construction defect litigation.

Common inspection findings in San Diego condos

Regardless of the building's age, certain findings come up frequently during condo inspections in San Diego:

Water intrusion at windows and sliding doors, particularly in buildings with stucco or EIFS exteriors. HVAC equipment that's past its expected service life (particularly in buildings where common-area systems are maintained by the HOA but in-unit systems are the owner's responsibility).

Plumbing conditions including water heater age, under-sink leaks, and toilet seal condition. Balcony and exterior conditions, especially in coastal buildings where salt air accelerates deterioration. Ventilation adequacy in bathrooms and kitchens. And general finish conditions that affect habitability and maintenance needs.

For a broader look at what inspectors find across San Diego properties, see our guides on what fails a home inspection and water damage evaluation.

How we handle condo inspections at 360 Home Inspections

We inspect condos, townhomes, and multi-unit properties throughout San Diego County. Our condo inspections evaluate the interior of the unit (electrical, plumbing, HVAC, windows, doors, appliances, finishes) and any accessible common areas permitted by the HOA. We document findings with photos and provide a detailed report.

For condo buyers, we recommend reviewing the inspection findings alongside the HOA documents. The physical condition of your unit is one piece. The building's overall condition, the HOA's financial health, and the legal environment (including the ongoing impact of California's construction defect liability framework) are the rest.

We also offer sewer scope inspections, mold testing, and can coordinate with other specialists when the inspection identifies conditions that warrant further evaluation.

We serve communities throughout San Diego County. Schedule your inspection or call us at (858) 707-7066.

Frequently asked questions

Q: What happened to AB 1903?

AB 1903 passed the California Senate and Assembly but failed to receive a final concurrence vote before the legislative session ended on September 1, 2026. The bill died without receiving a single "no" vote in either chamber. California's existing 10-year construction defect liability framework remains unchanged.

Q: How does AB 1903's failure affect San Diego condo buyers?

The status quo continues. Developers remain exposed to 10 years of construction defect liability on for-sale condos, which discourages new condo construction and limits inventory. Buyers face a market with fewer new condos, more converted-from-rental units, and aging existing inventory.

Q: Should I get a condo inspection before buying?

Yes. A condo inspection evaluates the condition of the systems and components within your unit. Combined with a review of HOA documents, reserve studies, and building history, the inspection gives you a comprehensive picture of what you're buying.

Q: What should a condo inspector look for in a building under 10 years old?

Building envelope conditions (flashing, stucco, window seals, drainage), water intrusion signs, balcony conditions, and any visible construction quality concerns. Also ask the HOA about any ongoing or planned construction defect claims.

Q: What is a special assessment and how does it relate to construction defects?

A special assessment is a charge levied on unit owners to fund a repair or project that the HOA's reserve fund can't cover. If a building has construction defects that the developer won't repair (or if the liability period has expired), the cost of repairs falls on the current owners, often through special assessments.

Q: What is the 10-year builder liability in California?

Under the Right to Repair Act (SB 800, Civil Code Sections 895 to 945.5), builders of for-sale residential construction in California carry legal liability for certain construction defects for up to 10 years after the building is completed. The specific liability period varies by defect type.

Q: How do I find out if my condo building has construction defect claims?

Review the HOA's meeting minutes, financial statements, and any available correspondence from the board. Active or contemplated litigation is typically discussed in board meetings. You can also ask the HOA management company directly about pending or past claims.

Q: Is a sewer scope needed for a condo?

It depends on the building's age and configuration. In older buildings with aging main drain lines, a sewer scope from an accessible cleanout can provide information about the pipe's condition. In newer buildings, a sewer scope is less commonly needed. Your inspector can advise based on the specific property.

Q: What HOA documents should I review before buying a condo?

At minimum: meeting minutes (6 to 12 months), the current reserve study, the operating budget, the CC&Rs, any pending or recent special assessments, and the master insurance policy documentation. These documents reveal conditions that a physical inspection of your unit alone cannot.

Q: Why are there so few new condos in San Diego?

California's construction defect liability framework (the Right to Repair Act) creates significant legal exposure for developers of for-sale condominium projects. The 10-year liability period and the legal process for pursuing claims have made many developers reluctant to build condos, leading to a severe inventory shortage. AB 1903 was intended to address this dynamic but failed to pass.

Final thoughts

AB 1903's failure at the September 1 deadline means San Diego's condo market stays exactly where it's been for two decades: constrained by a legal environment that discourages new construction and leaves buyers navigating aging inventory, converted rentals, and the financial risks that come with both.

The inspection doesn't change the legal environment. But it tells you what you're walking into with the specific unit and building you're considering. And the documents tell you what the inspection can't see: whether the HOA is financially prepared for what's coming, or whether the next special assessment has your name on it.

This article is for informational purposes. Legal and legislative information is based on publicly available reporting as of 2026. Consult with a qualified real estate attorney for guidance specific to your transaction.