Can You Sell an ADU Separately in California? AB 1033 Explained

California AB 1033: Can You Sell an ADU Separately?

Yes, but only in participating jurisdictions. California AB 1033 allows a city or county to create a process for a primary home and its accessory dwelling unit (ADU) to be owned and sold separately as condominiums. The law does not automatically make every ADU separately saleable. Your local government must opt in, and the property must satisfy state and local condominium requirements.

For homeowners, that distinction matters. You may be able to rent a permitted ADU even where a separate sale is not allowed. Selling it as its own property is a different legal process involving the local planning or public works department, the county recorder, your lender and, in some cases, an existing homeowners association.

The short answer: AB 1033 creates a pathway, not an automatic approval. Start by confirming that the city or county with jurisdiction over your property has adopted an AB 1033 ordinance.

What is AB 1033?

AB 1033 is a California law that authorizes local governments to allow the separate conveyance of a primary dwelling and one or more ADUs as condominiums. The operative version took effect in 2024 and is now reflected in California Government Code Section 66342. divide ownership while keeping the homes on the same underlying property within a condominium structure.

Does AB 1033 apply everywhere in California?

No. AB 1033 is optional for cities and counties. A local government must adopt its own ordinance before a typical homeowner can use this condominium pathway. Adoption and implementation can also happen at different times, so a news article or statewide summary is not enough to confirm eligibility for a specific address.

San Jose, for example, has a published ADU condominium conversion process. Its program requires applicants to complete a checklist and submit a parcel map application. Other jurisdictions may use different forms, sequencing, eligibility rules and fees.

What does selling an ADU separately actually mean?

Under an AB 1033 ordinance, the ADU is not simply detached from the parcel and given an ordinary standalone lot. Instead, the primary home and ADU become separate condominium interests. Each can then be conveyed separately, subject to the recorded condominium plan, governing documents and applicable law.

That structure usually means shared responsibilities must be defined, including common areas, insurance, exterior maintenance, access, utilities and other costs. It can create a new homeownership option, but it is more involved than obtaining an ADU building permit.

Does AB 1033 Apply Everywhere in California?

No. California cities and counties are not required to allow the separate sale of ADUs.

A jurisdiction must adopt a local ordinance implementing Government Code Section 66342. If it has not done so, an ADU generally cannot be sold separately from the primary residence through the AB 1033 condominium process.

Local participation can also change. Homeowners should verify the current rules directly with the planning or building department responsible for their property.

The First Question to Ask Your Local Planning Department

Ask:

“Has this jurisdiction adopted an ordinance under California Government Code Section 66342 allowing an ADU and primary residence to be conveyed separately as condominiums?”

If the answer is yes, request the jurisdiction’s current requirements, application process and fee schedule.

If the answer is no, you may still be able to build and use an ADU for family housing, long-term rental income, a home office or future flexibility. You simply would not be able to sell it separately under AB 1033 at this time.

What Does AB 1033 Require?

Where a local ordinance allows separate ADU sales, the property must generally be converted into a condominium arrangement. This is more involved than obtaining a standard ADU building permit.

Requirements include:

Creating the condominium in accordance with the Davis-Stirling Common Interest Development Act

Complying with applicable requirements of the Subdivision Map Act and the local subdivision ordinance

Completing a qualifying safety inspection before recording the condominium plan

Obtaining consent from applicable lienholders

Notifying utility providers

Providing the required disclosures to prospective buyers

Obtaining written authorization from an existing homeowners association when applicable

The exact process, documentation, costs and timeline depend on the jurisdiction and property.

The Bottom Line

AB 1033 can make it possible to sell an ADU separately from the primary residence, but only where the local city or county has chosen to allow it.

For most homeowners, the first step is not choosing a floor plan. It is confirming the local ordinance, speaking with the lender and understanding the condominium process.

Once those fundamentals are clear, you can make a more informed decision about the ADU itself and how it should support your family, property and long-term plans.

DISCLAIMER

This article is provided for general informational purposes and does not constitute legal, tax, lending, real estate or permitting advice. California ADU rules and local ordinances can change. Confirm current requirements with your local jurisdiction and qualified professional advisors before making property or construction decisions.