ADU Law · AB-1033
Can You Sell an ADU Separately in California? (AB-1033, 2026)
In most of California you still cannot sell your ADU separately from your main house, but a 2024 law called AB-1033 changed that for cities that choose to opt in. If your city has adopted an AB-1033 ordinance, you can legally turn your main home and your ADU into separate condominium units and sell or convey them independently. If your city has not adopted it, the ADU stays part of the same parcel as the main house and the two are sold together.
So the honest answer is: sometimes, and only if your specific city allows it. A small but growing number of California cities have passed AB-1033 ordinances. Most have not yet. Whether yours has is one of the things we confirm for your exact address during the feasibility study.
The short version: Statewide, an ADU is normally sold together with the main house. AB-1033 (effective 2024) lets cities opt in to allowing an ADU to be sold separately as a condominium. It is local and optional, so most cities have not adopted it yet. Where a city has, you can condo-ize the property and sell the units independently, with lender consent and a recorded condo plan.
What AB-1033 actually changed
Before 2024, an ADU was treated as an accessory to the primary residence. You could rent it out, but you could not sell it on its own, the whole property transferred as one parcel. The only narrow exceptions involved certain nonprofit and affordable-housing programs.
AB-1033 added a new option. It authorizes a local agency (your city or county) to adopt an ordinance allowing a primary dwelling and an ADU to be established as separate condominium units under California’s Davis-Stirling Common Interest Development Act. Once that condo structure is recorded, each unit has its own deed and can be sold, financed, or conveyed independently, much like any condo in a larger building.
The key word is option. AB-1033 does not force any city to allow separate sales. It gives each city the power to opt in. That is why the answer depends entirely on your local jurisdiction.
The conditions that apply where it is allowed
Even in a city that has adopted AB-1033, separating an ADU is not automatic. A few conditions generally apply:
| Requirement | What it means |
|---|---|
| Local ordinance in place | Your city must have formally adopted an AB-1033 ordinance. No ordinance, no separate sale. |
| Condominium plan recorded | The property is converted into a common interest development with a recorded condo plan and CC&Rs, the same legal framework used for condo buildings. |
| Lienholder consent | If there is a mortgage or other lien on the property, the lender must consent before the units can be separated. |
| Tenant notice | If a unit is tenant-occupied, existing tenant-protection and notice rules still apply. |
| Standard ADU compliance | The ADU must be a legal, permitted unit that meets state and local ADU standards in the first place. |
Early-adopter cities such as San Jose have moved on AB-1033, but most California cities have not yet passed an ordinance. The list changes over time, so the only reliable answer for your property is a current check with your city, which we handle for you.
Why this matters for your investment
The ability to sell an ADU separately adds real optionality to a property, even if you never use it. Here is how families think about it:
- Resale flexibility. A property with a condo-ready ADU can be sold whole or as two separate units, whichever brings the higher total. That optionality can lift appraised value. We dig into the appraisal side in our guide on ADU appraisal and resale value.
- An exit path. You might build an ADU to house a parent today, then years later sell just the ADU to fund retirement while keeping the main home, or the reverse.
- A different financing picture. Separately deeded units can be financed independently, which opens options that a single-parcel property does not have. Our financing guide covers how people pay for the build itself.
It is worth being clear-eyed, though. Condo-izing a property adds legal steps, CC&Rs, and ongoing common-interest-development obligations. For many owners, the simpler path of building an ADU and renting it long-term is the better fit. Our guide to California ADU rental laws covers that route.
How Framework First fits in
We are the builder, not your title company or your city’s planning department, so we are honest about the line. We design, permit, build, deliver, and install your ADU as a fully legal, permitted unit, which is the foundation any AB-1033 condo conversion requires. The condo plan, CC&Rs, and separate sale are a legal and city-level process you would complete with your title and legal professionals if your city allows it.
What we do for you is confirm where your city actually stands. As part of the feasibility study we check your address against current local rules, including whether your jurisdiction has adopted AB-1033. Our 14 models run from 405 to 1,200 square feet at an all-inclusive price of $180,000 to $557,000 that builds in a permitting budget confirmed for your address during the feasibility study, and you can browse them on the models page or estimate your project with the ADU calculator.
Frequently asked questions
Can I sell my ADU separately from my house in California?
Only if your city has adopted an AB-1033 ordinance. Statewide, an ADU is normally sold together with the main house as one parcel. AB-1033 lets cities opt in to allowing the main home and ADU to be split into separate condominium units that can be sold independently. Most cities have not adopted it yet, so you have to confirm your city’s status.
What is AB-1033?
AB-1033 is a California law, effective in 2024, that authorizes cities and counties to adopt ordinances permitting an ADU and the primary residence to be established as separate condominium units. It is a local opt-in, not a statewide mandate, so the rules depend on where your property is located.
Which California cities allow selling an ADU separately?
A small but growing number have adopted AB-1033 ordinances, with early movers including San Jose. The list changes over time and most California cities have not adopted it yet. Because it changes, we verify your specific city’s current position as part of the feasibility study rather than relying on an outdated list.
Do I need my lender’s permission to separate my ADU?
Yes. If there is a mortgage or other lien on the property, the lienholder generally must consent before the property can be converted into separate condominium units. This is one of several conditions, along with a recorded condo plan, that apply even in cities that allow it.
Is it worth condo-izing my ADU?
It depends on your goals. Separate-sale optionality can add resale flexibility and value, but condo conversion adds legal steps and ongoing common-interest-development obligations. Many owners are better served by simply building and renting the ADU long-term. We can talk through both paths for your situation.
The simplest way to know whether you could sell an ADU separately on your property is to let our team check your city’s current rules for you. We are a family-owned builder (CSLB #1047146, MFG #1595931) that has been building done-for-you ADUs since 2021. Start with a feasibility study and we will confirm what you can build and exactly how you are allowed to use, rent, or sell it.