AB 1033 Explained: Selling Your ADU as a Condo

It finally happened. After two years of “cities can technically allow this,” a California ADU has actually sold on its own, separate from the main house. A 749-square-foot, 2-bedroom home near downtown San Jose closed for $530,000 in June 2026, the first sale of its kind in state history.

If you own an ADU (or you’re thinking about building one), you’ve probably wondered whether you could ever sell it like a condo. Thanks to AB 1033, in a growing list of California cities, you can. Here’s how the law works, which cities have opted in, what the first sale tells us, and what it takes to condo-ize your granny flat.

If you’d rather skip the research and get answers specific to your property, book a call with Maxable. We’ll walk you through your options and connect you with vetted, licensed, and insured ADU pros.

What is AB 1033 (Ting)?

AB 1033 is a California law, authored by Assemblymember Phil Ting and in effect since January 1, 2024, that lets cities and counties allow homeowners to sell an accessory dwelling unit separately from the primary residence as a condominium. The key word is “lets.” AB 1033 is opt-in: your city has to adopt a local ordinance before you can sell your ADU on its own.

Before AB 1033, state law required ADUs to be sold together with the main house, no exceptions outside a narrow nonprofit carve-out. Now, in participating cities, the ADU and the primary home can hold separate titles and sell to separate owners. You can read the full bill text at leginfo.legislature.ca.gov, and see how it fits into the bigger picture in our guide to California ADU laws in 2026.

California’s first ADU condo sale is official

In June 2026, a brand-new ADU on Josefina Street near downtown San Jose became the first ADU in California ever sold as a condo. Here’s the sale at a glance:

The unit was built with its own utilities, a private entrance, parking, and no shared walls with the main house, and it was marketed with no HOA fees.

Now for the number that matters. California’s median single-family home price hit $930,260 in May 2026, a record high, according to the California Association of Realtors. This sale came in at $530,000, in San Jose of all places, one of the most expensive metros in the country. That’s a real front door, in a real neighborhood, for roughly $400,000 less than the median California house.

The buyer, Daniel Aflakian, put it simply to ABC7: “It will help people who want to own a place that’s more affordable.”

And San Jose isn’t stopping at one. The city has approved a second ADU condo conversion, with two more applications under review (As of July 2026). Building there? Start with our guide to building an ADU in San Jose.

Above Garage ADU in San Jose

What does condo-izing an ADU mean?

When you think of a condo, what comes to mind?

Many people imagine a condo as a type of building. But in reality, it’s a form of property ownership — co-ownership.

Condo-ization (you’ll also see “condominiumized” in city paperwork) involves determining the individual units that will make up a single property and allocating ownership of these separate units to different owners. This allows two or more distinct parties to legally own discrete parts of the same property without subdividing (i.e. physically splitting) it.

Therefore, a condo-ized ADU means that the ADU is part of a co-owned property with one party owning the primary residence and the other party owning the ADU. Under these terms, the ADU is considered a separate entity from the main home and can be sold separately.

While almost any property has the ability to be condo-ized, not every property has the permission to do so. That’s where AB 1033 comes in.

Which cities allow ADU condo sales?

As of July 2026, nine California cities have adopted AB 1033 ordinances. San Jose moved first in July 2024, and the list of participating cities has grown steadily since:

What about Los Angeles? Not yet. LA has an AB 1033 proposal working through the City Council, but no ordinance has been adopted, so ADUs in LA still can’t be sold separately.  San Diego County is also drafting rules for unincorporated areas.

Ordinances differ from city to city, and this list will keep changing. Before you make any plans, confirm the current rules with your city’s planning department. Oakland is one we’ve covered in depth: see our guide to building an ADU in Oakland.

What could AB 1033 mean for California?

More paths to homeownership, mostly at price points that barely exist in California anymore.

It could also increase gentle density in many cities. Unlike high density (think mid- and high-rise residential buildings), gentle density refers to the development of single-family type units like ADUs and duplexes within single-family zoned neighborhoods. Gentle density helps maintain the residential feel of neighborhoods while offsetting the growing housing crisis.

With the median California home at $930,260, a huge share of working families is priced out of a traditional house. Condo-ized ADUs create homes in the $400,000 to $600,000 range in neighborhoods where nothing else comes close.

For current homeowners, AB 1033 adds a new financial move. You could sell your ADU to help pay off its construction, or build one specifically to sell, without ever becoming a landlord. Curious what a build runs these days? Our ADU cost guide breaks it down.

What are the requirements for condo-izing an ADU?

While AB 1033 creates exciting new opportunities for homeowners, condo-izing an ADU is not as simple as putting the unit on the market. Local jurisdictions must first adopt ordinances allowing ADU sales, and homeowners will typically need to meet additional legal and financing requirements. This can include creating separate utility arrangements, establishing shared property agreements, and complying with condominium mapping procedures. Your lender has a say too: if there’s a mortgage on the property, the lienholder generally has to consent before a condo map is recorded.

Homeowners should also understand that condo-ized properties often involve homeowners association-style agreements between the primary home and ADU owner. These agreements help outline responsibilities for shared spaces, maintenance, insurance, and property access. (If you already live under an HOA, our guide to HOAs vs. ADUs covers how those rules interact with your build.)

How long does it take? Nobody has a clean answer yet – it’s still just too new of a concept. Paul Dashevsky and Jon Grishpul, Founders of GreatBuildz, sized it up this way:

“A homeowner going through the process probably will require an attorney, a surveyor and a civil engineer. It’s probably a yearlong process. Nobody knows yet.”

San Jose’s first conversion backs that up: the condo conversion was approved in August 2025 and the sale closed roughly ten months later. Because the process is complex, work with experienced ADU professionals, surveyors, and real estate attorneys before moving forward with an ADU you intend to sell. And the unit itself still has to be a legal, permitted ADU. Our ADU permit guide covers that side.

ADU by GreatBuildz

How is AB 1033 different from SB 9?

SB 9 deals with lot splits and duplexes; AB 1033 deals with selling ADUs. Under SB 9, you physically split the lot or add units, and it’s a statewide mandate. Under AB 1033, the lot stays whole, ownership is divided condo-style, and it only applies if your city opts in.

Which is better depends on your property and what your city allows. We compare them head-to-head in SB 9 vs. ADUs: what’s the difference?

Has ADU condo-ization worked anywhere else?

Yes, for years. Seattle, Austin, Portland, and Princeton, NJ all allow some version of it.

Let’s take Seattle, which has been condo-izing ADUs the longest.

According to The Seattle Times, roughly a third of new ADUs there have been permitted as condos in recent years, with condo-ized ADUs selling around a $732,000 median as of 2023 reporting. Not cheap, but hundreds of thousands below Seattle’s median house. We break down the city’s rules in our Seattle ADU guide.

Portland has allowed ADU condos since 2010. One of our favorite examples: Oregon Homeworks built two mirrored 800-square-foot, two-story units known as the Electric Slide ADUs, in what used to be the backyard of a duplex.

“By condo-izing ADUs, we’re creating an opportunity for people to purchase a home that otherwise couldn’t afford to live in a new construction home in a highly desirable walkable neighborhood.” – Eric Thompson of Oregon Homeworks

One of the units is now a starter home for a teacher, her husband, and their young daughter. Austin runs a similar playbook. California is late to this party, but it’s finally here.

FAQs

Can you sell an ADU separately from your house in California?

Yes, but only if your city has adopted an AB 1033 ordinance. As of July 2026, nine cities allow it, including San Jose, San Diego, San Francisco, and Santa Monica. Everywhere else in California, the ADU must still sell together with the primary residence.

How much did California’s first ADU condo sell for?

$530,000. The 749-square-foot, 2-bedroom ADU near downtown San Jose closed in June 2026, about $400,000 below California’s median single-family home price at the time.

Which cities allow ADU condo sales under AB 1033?

As of July 2026: San Jose, West Hollywood, Santa Cruz, San Diego, San Francisco, Oakland, Santa Monica, Berkeley, and Sebastopol. Los Angeles and San Diego County are considering ordinances. Always confirm with your city’s planning department, since this list keeps growing.

Can I sell my ADU as a condo in Los Angeles?

Not yet. Los Angeles has an AB 1033 proposal in progress at the City Council but has not adopted an ordinance, so ADUs in LA cannot currently be sold separately from the main house.

What does condo-ized or condominiumized mean?

It means a single property is legally divided into separately owned units without splitting the lot. For ADUs, one party owns the main house and another owns the ADU, each with its own title, the same ownership structure as a condo in a building.

Do ADU condos have HOA fees?

It depends on the agreement. AB 1033 conversions typically require an HOA-style agreement between the two owners covering things like maintenance and insurance, but fees vary by setup. California’s first ADU condo sale was marketed with no HOA fees.

Plan, hire, and manage your ADU project with Maxable!

We’ve watched AB 1033 go from a bill on Governor Newsom’s desk to a closed sale in San Jose. The next few years should bring more participating cities and a real market for ADU condos.

Whether you want to build for passive rental income or eventually sell your ADU under AB 1033, Maxable is your guiding hand. Chat with an expert, give us a brief rundown of your project, and we’ll match you with a vetted network of reliable ADU designers and builders in your area.

We hope to connect with you soon!