The Complete Guide to Buying or Selling a Condo in San Diego County

If you're thinking about buying a condo in San Diego County, or you already own one and you're wondering whether to sell, you've probably noticed something. Condos come with a lot more moving parts than a regular house.

You're not just buying four walls and a roof. You're buying into a shared building, a shared budget, and a shared set of decisions made by people you've never met. That's not a bad thing. It's just different, and it changes how you should think about the purchase or the sale.

I've spent 17 years helping San Diego County homeowners with exactly this kind of decision, and I want to walk you through everything I wish every condo buyer and seller understood from the start. This is a long one, but it's meant to be a resource you can come back to, not a quick skim.

What You're Actually Buying When You Buy a Condo

When you buy a single-family home, you own the whole thing, the structure and the dirt under it. A condo works differently.

You own your unit, meaning the space inside your walls. Everything else, the roof, the exterior walls, the elevators, the pool, the landscaping, the parking structure, belongs to everyone together. That shared ownership is managed by a Homeowners Association, or HOA.

This matters because it means your home's condition depends on more than just your own maintenance habits. If the roof needs replacing, or the pipes behind your walls fail, that's the HOA's responsibility (in most cases), funded by everyone's dues. You get less control, but you also get less personal responsibility for big-ticket exterior repairs.

HOA Fees: What They Actually Cover

HOA fees pay for the upkeep of everything shared. That typically includes landscaping, common-area utilities, trash service, insurance on the building structure, management company fees, and amenities like a pool or gym if the building has them.

Fees across San Diego County vary a lot depending on the building's age, size, and amenities. A smaller, older building with no amenities will usually run lower than a high-rise with a pool, elevator, and full-time staff. I'd rather sit down and pull actual comparable numbers for a specific building than throw out a generic range that might not match reality.

Here's what matters more than the dollar figure: what the fee actually covers, and whether it's enough to keep the building properly maintained. A low HOA fee can look attractive on paper, but if it's not funding real maintenance, that gap doesn't disappear. It shows up later as a special assessment.

Reserve Funds and Reserve Studies

This is the part most buyers skip, and it's the part that matters most.

A reserve fund is the HOA's savings account for big future expenses, things like roof replacement, repaving, repiping, or major structural repairs. A reserve study is a report, usually done every few years, that estimates how much money the building will need for those future repairs and whether the HOA is saving enough to cover them.

Before you buy, ask for the most recent reserve study. You want to know two things:

• Is the reserve fund "fully funded," meaning it has enough saved for known upcoming repairs?
• Or is it underfunded, meaning the HOA is behind and will likely need to raise dues or issue a special assessment?

An underfunded reserve isn't automatically a dealbreaker. But it should change your offer, or at least your expectations for what's coming.

SB 326 Balcony Inspections: A Newer Issue Every California Condo Buyer Should Know About

This one is fairly new, and it's catching a lot of buyers and even some sellers off guard right now.

California passed a law, SB 326, that requires condo HOAs to have balconies, decks, stairways, and walkways inspected by a licensed structural engineer or architect. It applies to condominium projects governed by the Davis-Stirling Act with three or more attached units. The law came about after a balcony collapse in Berkeley, and it's meant to catch hidden rot and water damage before it becomes dangerous.

The first inspection deadline already passed, and buildings are now on a nine-year inspection cycle going forward, coordinated with the HOA's regular reserve study. If a serious safety issue turns up, the inspector has to notify the HOA and local building department within 15 days, and access to the affected area gets restricted right away.

Here's why this matters to you as a buyer or seller. These inspections are turning up real problems in older buildings, and the repair costs aren't small. Some California condo owners have faced assessments anywhere from the low thousands up into six figures per unit, depending on the scope of the damage and the building. That's a wide range, and every building is different, but it tells you this isn't something to gloss over.

If you're buying, ask directly: has this building completed its SB 326 inspection, and if so, what did it find? If you're selling, know that buyers and their agents are asking this question more often now, and having a clean report (or a clear repair plan already in motion) can prevent a deal from falling apart late in escrow.

Special Assessments: The Surprise Bill Nobody Wants

A special assessment is a one-time charge the HOA bills to every owner, on top of regular dues, when there isn't enough in reserves to cover a needed repair. It could come from a balcony inspection finding, a roof failure, plumbing issues, or any other major expense the reserve fund can't absorb.

Before buying, ask the HOA for:

• Recent board meeting minutes (look for any discussion of upcoming repairs or funding shortfalls)
• Whether any special assessments are pending or being discussed
• The HOA's litigation history, since lawsuits often signal deeper problems

Before selling, get ahead of this. If you know an assessment is likely, decide whether to disclose it proactively, adjust your price, or pay it off before listing. Buyers and their lenders will find out anyway, so it's almost always better to be the one who brings it up first.

A Major Financing Change Just Took Effect, and It Changes How Condo Loans Get Approved

This is new, and it's a big one. If you're buying or selling a condo right now, you need to know about it.

For years, a lot of condo buyers with a solid down payment could get through a "Limited Review" or "Streamlined Review." That meant the lender didn't have to dig too deep into the HOA's finances before approving the loan. It kept things moving fast for well-qualified buyers.

That option is gone now for most buildings. Fannie Mae and Freddie Mac eliminated it, and the change took full effect on August 3, 2026. Now, almost every condo loan requires a Full Review. That means the lender has to look closely at the HOA's reserves, its insurance coverage, its repair history, any pending special assessments, any lawsuits, and how many owners are behind on their dues, before your loan can be approved.

Here's what that means in plain terms:

• Buyers should expect a longer, more document-heavy process. Even a well-qualified buyer with great credit and a strong down payment can't skip this review anymore.
• The building matters as much as you do. A perfect buyer can still get held up, or denied, if the HOA's finances or paperwork aren't in order.
• Smaller buildings may have it easier. Condo projects with 10 units or fewer can often qualify for a simpler waiver process, so financing may move faster there.
• Sellers need to get ahead of this. If your HOA's reserve study, budget, or meeting minutes aren't current and organized, buyers may run into financing delays that have nothing to do with them, and everything to do with your building's paperwork.

If you're buying, ask your lender up front how this building will be reviewed, and how many units it has. If you're selling, now is the time to make sure your HOA's financial documents are current and easy for a lender to review. A building that's disorganized on paper can lose buyers who would otherwise qualify without any trouble.

This also ties directly back into everything we covered on reserve funds, special assessments, and SB 326 inspections. Lenders are now looking at all of it together, which makes having your HOA's house in order more important than it's ever been.

Condo Insurance: What's Covered and What Isn't

The HOA carries a master insurance policy that typically covers the building's structure and common areas. But that policy usually does not cover what's inside your unit, your personal belongings, upgrades you've made, or liability if someone's hurt inside your home.

That's where an HO-6 policy comes in. It's a condo owner's individual policy that fills the gap between what the master policy covers and what's yours. Every condo owner should carry one, and every mortgage lender will require it.

Selling a Condo: What Buyers and Lenders Will Want to See

When you sell a condo, you're not just handing over keys. You're handing over paperwork that proves the HOA is in good shape. Buyers and their lenders will typically want:

• CC&Rs (the HOA's governing rules)
• Recent financial statements and budget
• The most current reserve study
• Recent board meeting minutes
• Information on any pending or completed SB 326 inspections
• Confirmation of no pending special assessments, or full disclosure if one exists

Getting these documents ready before you list saves time and prevents surprises once you're in escrow. These are generally ordered through a 3rd party and paid for by the seller. I always help my sellers pull this together early, so nothing holds up closing later.

Condo vs. Single-Family Home: Which Makes Sense for You

There's no universal right answer here. It depends on what stage of life you're in and what you're solving for.

Condos tend to make sense when you want less exterior maintenance, you're downsizing from a larger home, you want more security or amenities, or you're managing a property from out of state and don't want to deal with landscaping or roof repairs yourself.

Single-family homes tend to make sense when you want full control over decisions and costs, you don't want to share walls or common spaces, or you're less comfortable with the unpredictability of HOA dues and assessments.

For inherited property specifically, a condo can actually be easier to manage from a distance, since the HOA handles a lot of the physical upkeep. But you'll still want that reserve study and inspection history reviewed before deciding whether to keep, rent, or sell it.

Common Mistakes Buyers and Sellers Make

• Buyers skipping the reserve study. This is the single biggest miss. It tells you more about your future costs than almost anything else in the listing.
• Sellers assuming "no HOA drama" means no disclosure needed. If you know about upcoming costs, even ones not yet finalized, it's usually better to disclose than to let a buyer find out later.
• Buyers not checking SB 326 status. In older buildings especially, this is now a standard question to ask.
• Assuming low HOA dues equal a good deal. Sometimes it just means underfunded reserves and a bill coming later.
• Not reading board meeting minutes. This is where you find out what's really going on, well before it shows up in a formal notice.

When to Bring in a Professional

Real estate guidance can only take you so far. For certain situations, sometimes it's worth bringing in an attorney or CPA before you make a final decision:

• Reviewing CC&Rs or HOA litigation for legal risk
• Understanding capital gains, depreciation recapture, or 1031 exchange rules if you're selling an investment condo
• Trust or probate property involving a condo
• Any dispute with the HOA that may require legal action

I'm not an attorney or a CPA, and I'll always tell you when a question needs one. My role is to help you understand the real estate side clearly enough that you know what to ask, and who to ask it to.

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FAQ

Is it harder to get a mortgage for a condo than a house? It can be, depending on the building. Lenders evaluate the whole HOA, including its finances, insurance, and owner-occupancy rate, not just your individual finances. A well-run building usually finances easily.

What is SB 326 and does it apply to every California condo? SB 326 is a California law requiring HOA-governed condo buildings with three or more attached units to have balconies, decks, and walkways inspected by a licensed engineer or architect, on a nine-year cycle. It generally does not apply to properties where individual owners maintain their own structures rather than the HOA.

How do I know if an HOA's reserve fund is healthy? Ask for the most recent reserve study. It will show whether the fund is fully funded or underfunded relative to expected future repairs. A licensed professional prepares this report specifically to answer that question.

What happens if I buy a condo and then get hit with a special assessment? You're responsible for it as the new owner, unless you negotiated otherwise in your purchase agreement. This is exactly why reviewing HOA documents and meeting minutes before closing matters so much.

Do I need a special insurance policy if the HOA already has one? Yes. The HOA's master policy generally covers the building structure and common areas, not your personal belongings or interior. An HO-6 policy covers that gap, and most lenders require it.

What changed with condo financing in 2026? Fannie Mae and Freddie Mac eliminated the streamlined loan review that many well-qualified buyers used to rely on. As of August 3, 2026, most condo loans now require a full review of the HOA's finances, insurance, and repair history, regardless of the buyer's down payment or credit.

Is a condo a good choice for an inherited property I don't live near? It often is, since the HOA handles a lot of exterior upkeep. But you'll still want the reserve study and SB 326 inspection history reviewed before deciding whether to keep, rent, or sell.

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Buying or selling a condo in San Diego County comes with more moving parts than most people expect. If you're trying to figure out what makes sense for your situation, whether that's a condo you're considering buying, one you inherited, or one you're ready to sell, I'm happy to sit down and walk through it with you.

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This article is for general educational purposes and reflects real estate practices in San Diego County. It is not legal, tax, or financial advice. For questions specific to your situation, consult a licensed attorney or CPA.