AB 1033 explained: selling your ADU separately from your house

AB 1033, effective January 1, 2024, permits cities and counties to adopt ordinances for separate condominium conveyance of an ADU under Government Code §§ 66340–66342. It does not legalize sales statewide or prove that a particular parcel qualifies. A separate qualified-buyer conveyance pathway has its own statutory conditions. Confirm an enacted, effective ordinance for the actual jurisdiction before planning a condominium sale.

What AB 1033 actually changes

AB 1033 amended the then-applicable ADU statute to authorize local opt-in ordinances; SB 477 subsequently reorganized ADU provisions into Government Code §§ 66310–66342 without substantive change. A condominium conveyance requires the statutory conditions, including a recorded condominium plan, Davis-Stirling compliance and required lienholder consent. Check the current local ordinance and obtain qualified legal advice before undertaking a conversion.

Which California cities have opted in

For the City of Los Angeles, Council File 25-0753 shows a motion adopted September 10, 2025; the file did not establish an enacted, effective AB 1033 ordinance when reviewed September 26, 2026. That motion alone does not authorize separate sale. Unincorporated Los Angeles County has a different lawmaking authority; an ordinance for an incorporated city cannot authorize a county parcel. Adoption in other cities must be established from each city's effective ordinance, not assumed from state law.

• —AB 1033 is permissive, not automatic: separate sale is possible only where the city or county has adopted an enabling ordinance.
• —Adoption status differs city by city across LA County and changes over time.
• —Unincorporated LA County parcels follow county policy, not the rules of the nearest city.
• —Verify current status with the planning department for your exact address before relying on it.

City-level adoption status changes frequently. Always confirm with the local planning department before assuming AB 1033 applies — see our California Permit Directory for direct office links.

Steps to convert an ADU to a saleable condo

1. 01Confirm your city has adopted an AB 1033 opt-in ordinance.
2. 02Hire a land surveyor + civil engineer to prepare a condominium plan that defines unit boundaries, common areas, and easements.
3. 03Record CC&Rs (Covenants, Conditions & Restrictions) compliant with the Davis-Stirling Act.
4. 04Obtain written consent from your mortgage lender — most loans require this before subdivision.
5. 05Submit the condo map to the city and the California Department of Real Estate (DRE).
6. 06Pay reassessment of the new condo parcel through the County Assessor.

Why this matters financially

Where an effective opt-in ordinance and all statutory conditions apply, an owner may consider a separate condominium sale instead of retaining an ADU for rental or family use. Neither the selling price nor recovery of construction cost is assured. Survey, legal, lender and recording requirements need individual review before comparing options; see the rental evidence guide for limits of rental comparisons.

Property tax implications

A condo conversion triggers a separate parcel assessment. The new condo gets its own tax bill at the current market value, while the primary residence's Proposition 13 basis stays intact. This is materially different from simply building an ADU — see our ADU property tax reassessment guide for the rental-only scenario.