Can an ADU really be sold separately in California?
Yes. Thanks to AB 1033, a major 2024 housing law now gaining traction in 2025. This law directly impacts anyone planning to sell a home, build an ADU, or explore property value opportunities across the South Bay. As a local real estate expert, I’m breaking down exactly what this means for homeowners.
What Is AB 1033?
AB 1033 removes California’s previous statewide ban on selling ADUs separately. It creates a legal structure allowing cities to adopt ordinances permitting an ADU to be sold independently, much like a condominium.
➡️ Key Reminder from Victoria Babilonia: Your ADU can only be sold separately if your city adopts an AB 1033 ordinance.
Cities That Have Adopted AB 1033
As of 2025, only a few cities have adopted ordinances:
- San José
- Santa Monica
- West Hollywood
Cities currently reviewing adoption:
- Los Angeles
- Pasadena
I’ll continue following municipal conversations around adopting AB 1033 and ensure everyone stays informed.
Why AB 1033 Matters for Home Sellers
- As a South Bay listing agent, I see several advantages:
- Potential to sell your home and ADU separately, increasing equity
- Additional value for buyers seeking flexible living option
- Greater appeal for multigenerational families
- More affordable entry points for local buyers
- These benefits may significantly improve your selling strategy.
How an ADU Sale Works Under AB 1033
Step 1: Financing
Most traditional mortgages don’t allow subdividing under an existing lien. Temporary or construction financing is typically required.
Step 2: ADU Consturction
The ADU must be fully permitted and complete.
Step 3: Condoization
This creates two legally separate units and includes:
- A condo map
- CC&Rs outlining utilities, access, and responsibilities
Step 4: Final Approval
Once approved, the ADU becomes its own saleable property.
How Families Benefit
As I often see in the South Bay Los Angeles, AB 1033 helps with:
- Senior parents downsizing into the ADU
Adult children owning an ADU independently
Clearer inheritance planning
Simplifying multi‑owner situations between siblings
Why Cities Haven’t Fully Adopted AB 1033 Yet
Local governments must evaluate:
- Parking availability
Infrastructure capacity
– Density and neighborhood character
– Utility configurations
These discussions take time, but change is coming.
Why AB 1033 Matters for South Bay Los Angeles Homeowners
Although no South Bay Los Angeles cities have approved ordinances yet, I anticipate movement. Once implemented, AB 1033 could:
- Increase your property’s market value
– Create new opportunities to sell your home fast
– Provide more affordable ownership paths
– Expand inventory in a low‑supply market
As your South Bay Los Angeles expert, I will keep you updated as cities take action.
Source
All legislative information sourced from the California Legislature:
https://leginfo.legislature.ca.gov/
Disclaimer
This document is for informational purposes only and not legal, tax, or financial advice. Always consult licensed professionals.
Contact — Victoria Babilonia, South Bay Real Estate Agent
If you want to know how AB 1033 may impact your property value or your ability to sell your home, I’m here to help.
Victoria Babilonia ~ South Bay Real Estate LA Agent
📞 (310) 291-8048
🌐 SouthBayLaFineHomes.com
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