HOA Critical Repairs: Why They are Killing Condo Sales in San Diego

HOA Critical Repairs: Why They’re Killing Condo Sales in San Diego

If you’ve been following the condo market in California, you’ve probably heard about HOA “critical repairs”. These are major structural or safety-related repairs identified in association inspections—things like roof replacements, plumbing systems, balconies, or foundation issues.

Here’s the problem: when a lender sees an HOA with pending or unfunded critical repairs, they often refuse to fund the loan. That means even if you have a willing buyer and seller, the escrow can collapse overnight.

 

What Buyers and Sellers Need to Know

• This is happening everywhere in California, not just in older buildings. Many San Diego condos are being flagged.

• Buyers: Before writing an offer, make sure your lender checks the HOA’s financials and repair disclosures. Otherwise, you risk wasting time and money.

• Sellers: Even if your condo looks great, the HOA’s “critical repairs” can kill your deal. You need a plan before you list.

Does It Affect Everyone?

Not all condos are affected—but the ones that are can be nearly impossible to finance with a traditional loan. That said, it doesn’t mean your sale is dead.

Workarounds and Solutions

George Lorimer has closed deals that other agents gave up on. While most agents point fingers at the HOA, George has financing and sale strategies that get condos sold—even when lenders deny loans over critical repairs.

A Little History

This issue ramped up after the Surfside condo collapse in Florida (2021). Regulators tightened lending standards, and California HOAs now face more scrutiny. That’s why so many escrows are suddenly failing in 2024–2025.

?? Want to know the secrets to side-step loan denials and still sell your condo?
Call or text George Lorimer at 619-846-1244. Don’t let an HOA repair list kill your deal.