Accessory Dwelling Units (ADUs) have become an increasingly popular option for homeowners seeking to maximize the potential of their properties. These self-contained units, also known as granny flats or in-law suites, provide an additional living space on the same property as the main residence. They offer a range of benefits, from providing affordable housing options to generating rental income. With the passing of Bill AB1033, there is now a new avenue for homeowners to explore: ADUs sold separately. In this article, we will delve into the details of this bill, its implications for the real estate market, and the potential opportunities it presents for homeowners and investors.

What is Bill AB1033?

Bill AB1033 is a legislative measure that permits the sale of ADUs as separate entities from the main property. Previously, ADUs could only be rented or used by family members of the homeowner. However, under this new bill, homeowners have the option to sell their ADUs independently, opening up a whole new realm of possibilities. This bill aims to address the increasing demand for affordable housing options and provide homeowners with additional financial flexibility. By allowing ADUs to be sold separately, it encourages the construction of more units and increases the housing supply.

Understanding ADU Sold Separately

ADU sold separately refers to the sale of an ADU as a standalone property, separate from the main residence. This means that buyers have the opportunity to own a self-contained living space on a property without the obligation of purchasing the entire property. ADU condos, as they are often referred to, offer a unique housing option for individuals or families seeking affordable yet independent living spaces. These units typically have their own separate entrances, utilities, and amenities, providing a sense of privacy and autonomy.

Benefits of ADU Condos

ADU condos present several advantages for both homeowners and potential buyers. For homeowners, the ability to sell ADUs independently can be financially advantageous. It allows them to unlock the value of their property and generate additional income through the sale of these separate units. Furthermore, the construction of ADUs can increase the overall value of the property, making it a more attractive investment. For buyers, ADU condos offer an affordable housing option in desirable locations. These units are often smaller and more budget-friendly than traditional homes, making them an appealing choice for first-time buyers or those looking to downsize.

How ADU Sold Separately Impacts Real Estate Market

The introduction of ADU sold separately under Bill AB1033 has the potential to significantly impact the real estate market. It is expected to increase the supply of affordable housing options, easing the demand in competitive markets. Additionally, the construction and sale of ADU condos can stimulate economic growth, providing job opportunities in the construction industry. This new housing option also promotes sustainable development by utilizing existing infrastructure and reducing the need for urban sprawl. Overall, ADU sold separately has the potential to create a more diverse and inclusive real estate market.

Challenges and Considerations for ADU Sold Separately

While ADU sold separately presents exciting opportunities, there are also challenges and considerations that homeowners and buyers need to be aware of. One challenge is navigating the legal and regulatory requirements associated with selling ADUs as separate properties. It is important to ensure compliance with local zoning laws and building codes. Additionally, homeowners should carefully consider the financial implications of selling an ADU separately, including potential tax implications and the impact on their overall property value. For buyers, it is crucial to thoroughly assess the condition and quality of the ADU condo before making a purchase, as well as understanding any homeowners’ association rules or fees that may apply.

Potential Opportunities for Homeowners and Investors

The availability of ADU sold separately presents a range of opportunities for homeowners and investors alike. For homeowners, selling ADUs independently provides an opportunity to unlock the value of their property and generate additional income. It allows them to tap into the growing demand for affordable housing options and contribute to the development of their community. Investors, on the other hand, can take advantage of the potential rental income and long-term appreciation of ADU condos. The flexibility of these units also offers the possibility of diversifying their real estate portfolio. With careful planning and consideration, ADU sold separately can be a lucrative investment strategy for both homeowners and investors.

Steps to Take When Buying or Selling an ADU Sold Separately

If you are considering buying or selling an ADU sold separately, it is important to follow a series of steps to ensure a smooth and successful transaction. For sellers, start by determining the market value of your ADU condo and consult with a real estate agent who is experienced in selling these types of properties. Prepare all necessary documentation, including any permits or certificates of occupancy. Consider staging the ADU to showcase its potential to potential buyers. For buyers, thoroughly research the market and seek the assistance of a qualified real estate agent who specializes in ADU condos. Conduct a thorough inspection of the property and review all relevant documents before making an offer. It is also advisable to consult with a legal professional to ensure compliance with all legal requirements.

Resources and Support for ADU Sold Separately

Navigating the world of ADU sold separately can be complex, but there are resources and support available to assist homeowners and buyers. Local government websites often provide information on zoning regulations and permit requirements for ADUs. Real estate agents who specialize in ADU condos can offer guidance and expertise throughout the buying or selling process. Additionally, there are online forums and communities where homeowners and investors can connect and share their experiences. It is essential to tap into these resources to ensure a successful and informed decision-making process.


The passing of Bill AB1033 has unlocked new opportunities in the realm of ADUs. ADU sold separately offers homeowners the ability to sell these self-contained units independently, providing financial flexibility and addressing the demand for affordable housing options. This innovative approach to housing has the potential to transform the real estate market by increasing the housing supply and promoting sustainable development. While there are challenges and considerations to navigate, the potential benefits for both homeowners and investors make ADU sold separately a compelling option. By understanding the steps involved and utilizing available resources and support, homeowners and buyers can make informed decisions and unlock the full potential of ADUs under Bill AB1033.

If you are a homeowner or investor interested in exploring the opportunities presented by ADU sold separately, consult with a qualified real estate agent who specializes in these types of properties. They can provide the expertise and guidance needed to navigate this exciting new avenue in the real estate market.

AB 1033, as amended, Ting. Accessory dwelling units: local ordinances: separate sale or conveyance.


  • Existing law authorizes local agencies to create accessory dwelling units (ADUs) in areas zoned for residential use.
  • Existing law prohibits ADUs from being sold or conveyed separately from the primary residence, except in limited circumstances.
  • AB 1033 would authorize local agencies to adopt local ordinances to allow the separate conveyance of the primary dwelling unit and ADUs as condominiums.
  • AB 1033 would also impose new duties on local governments with respect to the approval of ADUs.


AB 1033 is intended to increase the availability of affordable housing by making it easier to build and sell ADUs. ADUs are typically smaller, secondary housing units that are located on the same property as a single-family home. They can be used to generate rental income, house family members, or provide additional living space for homeowners.

AB 1033 would allow local agencies to adopt local ordinances to allow the separate conveyance of the primary dwelling unit and ADUs as condominiums. This would make it possible for homeowners to sell their ADUs separately from their primary residence. This could increase the affordability of ADUs, as buyers would not be required to purchase the entire property in order to own an ADU.

AB 1033 would also impose new duties on local governments with respect to the approval of ADUs. Local agencies would be required to adopt ministerial approval procedures for ADUs that meet certain criteria. Ministerial approval procedures are typically more streamlined and less expensive than discretionary approval procedures. This could make it easier and less expensive for homeowners to build ADUs.”

Cameron Meredith

As Vice President of ADU West Coast, Cameron heads our overall operations. Cameron oversees seeking new projects and opportunities throughout Los Angeles and Orange County. He has been involved with various development/construction projects throughout his career. One of them being a 47-acre greenhouse commercial development project in Adelanto, CA.