Can I Sell My ADU Separately? AB 1033 Explained

In cities that have opted in under AB 1033, yes — you can sell your ADU on its own, just like a condo, and keep your main house.

For most of California history, the answer was no — an ADU had to stay part of the same property as the main house, and the two could only change hands together. A 2023 law changed that, with one big condition: your city has to say yes first.

What AB 1033 Does

Under California law AB 1033, cities can let homeowners sell an ADU on its own, just like a condo. AB 1033 lets a local agency adopt an ordinance allowing an ADU to be sold or conveyed separately from the primary residence as a condominium, under Government Code Section 66342. The ADU gets its own ownership, separate from the house it shares a lot with.

How a Build-and-Sell Project Works

Where a city has opted in, the play looks like this: you build one unit in your backyard, sell it — often to a first-time buyer getting a first foothold in a neighborhood they could not otherwise afford — and keep living in your main house. The sale runs through a condominium conversion: a condominium plan for the lot, the property held as a small common-interest development with its own homeowners association and CC&Rs for the shared areas, and separate utility connections for each home. It is real paperwork, closer to a small subdivision than to a normal home sale — which is exactly why the local ordinance and process matter.

The Catch: Not Every City Has Opted In

Not every city has opted in yet, so the local rules matter. AB 1033 is permissive, not mandatory — until your city or county adopts an ordinance allowing separate ADU sales, an ADU in that jurisdiction cannot be sold on its own, no matter how it was built. A few more ground rules hold everywhere: a junior ADU (JADU) can never be sold separately — its deed restriction ties it to the main home — and an ADU built to be sold still has to meet the same building, subdivision, and utility requirements as any other unit.

Thinking About It? Check Your City First

If selling an ADU separately is part of your plan — as an exit strategy, a way to help a family member buy in, or a way to unlock equity without moving — the first step is finding out whether your city allows it today. We check your jurisdiction’s current stance during feasibility, before you design a project around a sale your city has not authorized yet. More answers on our ADU FAQ page.

General information about AB 1033 (2023) and Government Code Section 66342, not legal or tax advice. Separate-sale ordinances, condominium requirements, and lender practices change; confirm the current rules for your property with your city and a real-estate attorney.