Navigating San Diego's AB 1033: A Guide to Selling Your ADU

Accessory Dwelling Units (ADUs) have become a popular way for homeowners in San Diego to add value and flexibility to their properties. With the recent introduction of California’s Assembly Bill 1033 (AB 1033), the process of selling an ADU has changed significantly. Understanding this new law is essential for homeowners who want to sell their ADU as a separate condominium unit. This guide breaks down what AB 1033 means for you and how to navigate the selling process smoothly.

What AB 1033 Means for ADU Owners in San Diego

AB 1033 allows homeowners to convert their ADUs into separate condominium units for sale. This law aims to increase housing availability by making it easier to sell ADUs independently from the main property. Before AB 1033, selling an ADU separately was complicated or even impossible under local regulations.

Key points of AB 1033 include:

• Separate ownership: ADUs can be sold as individual condo units with their own title.

• Simplified approval: The law streamlines the process for local governments to approve these conversions.

• Preservation of property rights: Homeowners retain control over their main property while gaining flexibility with the ADU.

  
  

This change opens new opportunities for homeowners to unlock the value of their ADUs without selling the entire property.

Steps to Sell Your ADU Under AB 1033

Selling an ADU as a condo unit involves several important steps. Here’s a practical overview:

1. Check Local Regulations

   Even with AB 1033, local city or county rules may apply. Confirm that your ADU meets all zoning, safety, and building code requirements for conversion.

   
   

2. Hire a Qualified Surveyor or Architect

   You will need a professional to prepare a condominium plan that clearly defines the boundaries of the ADU and the main property.

   
   

3. File a Condominium Plan with the County

   Submit the plan to the San Diego County Recorder’s Office. This step legally separates the ADU as its own unit.

   
   

4. Disclose to Buyers

   Provide full disclosure about the ADU’s status, including any shared utilities or maintenance responsibilities.

   
   

5. Work with a Real Estate Agent Experienced in ADUs

   An agent familiar with AB 1033 can help market your ADU effectively and navigate the legal complexities.

   
   

Practical Considerations for Sellers

While AB 1033 offers new opportunities, some factors require attention:

• Financing: Buyers may face challenges securing loans for ADU condos, as some lenders are unfamiliar with this type of property.

• Homeowners Association (HOA): If your property is part of an HOA, check if there are any restrictions on ADU sales.

• Tax Implications: Selling an ADU separately may affect your property taxes or capital gains taxes. Consult a tax professional for advice.

  
  

What This Means for San Diego’s Housing Market

AB 1033 encourages more homeowners to sell ADUs, potentially increasing affordable housing options in San Diego. It also provides a new income stream for property owners who want to downsize or invest in other properties. For buyers, it offers a chance to own a smaller, more affordable home in desirable neighborhoods.

Final Thoughts