Kim Lisa TaylorSecurities Attorney, Founder, Syndication Attorneys, PLLC · Corporate Securities Attorney, 2x Best-Selling Author, Nationwide Speaker | Private Placement

Can You Sell an ADU? California’s New Legislation Explained

24 Jan 2025 · 1 min

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In this brief dialogue, the speakers explain that recent California state legislation now permits owners of accessory dwelling units (ADUs) to sell them as separate dwellings, similar to condominiums. However, the law requires individual cities to adopt enabling rules before the provision can be exercised. To date, San Jose is the only California city that has formally adopted the regulation. The state is urging municipalities to remove barriers, emphasizing the need for additional housing supply through ADU sales.

So can you actually sell an ADU once you build one?
The state came down and passed a regulation that does allow you to sell ADUs separate as a separate dwelling, you know, almost like a condo format. Now what the state did in that legislation is they allowed the cities, they said, okay, we're going to allow this, but the cities have to adopt it. The only city that I'm aware of to this point that has adopted it in the state of California is San Jose. And finally the state put their foot down and said, all right, cities get out of the way. We need housing.