Can You Sell Your ADU Separately? AB 1033 Explained (2026)

Until recently, you could not sell an ADU separately from the main house in any US state. California's AB 1033, which took effect in 2024, changed that by allowing cities to opt in to a program permitting separate sale of ADUs as condominiums. This could fundamentally change ADU economics.

What AB 1033 Does

AB 1033 allows California cities to pass local ordinances permitting the separate conveyance (sale) of ADUs as condominiums. This means a homeowner could potentially build an ADU and sell it to a different buyer while keeping their main house. The law creates an entirely new asset class.

Which Cities Have Opted In?

As of early 2026, several California cities are in the process of adopting AB 1033 ordinances. The law requires cities to voluntarily opt in — it is not mandatory. Los Angeles, San Diego, and San Jose are among the cities exploring adoption. Check your city's ADU page for the latest status.

How It Works: The Condo Map Process

To sell an ADU separately, homeowners must go through a condominium mapping process. This involves creating a legal subdivision of the property, establishing a homeowners association (HOA), and recording a condo map with the county. The process adds cost and complexity but creates a tradeable asset.

What This Means for ADU ROI

Separate sale changes the ROI calculation entirely. Instead of recouping costs through rental income over 8-12 years, homeowners could potentially sell the ADU for a profit immediately after construction. In high-cost CA markets, an ADU that costs $200K to build could sell for $350K-$500K.

Other States Watching California

Other states are monitoring AB 1033 closely. If the program succeeds in California, expect similar legislation in Oregon, Washington, Massachusetts, and other ADU-forward states. This could be the next major evolution in ADU policy nationwide.