San Jose First in Nation to Allow ADU Condo Sales
Legal Framework Enabling ADU Condo Sales When California's Assembly Bill 1033 (AB 1033) becomes effective on January 1, 2024, significant changes in real estate law will empower cities, like San Jose. These changes will allow the separate sale and condominium creation of Accessory Dwelling Units (ADUs) alongside their primary residences. This legislation grants expanded ownership rights. It will enable ADUs to be independently sold from the main house. Cities must ensure legal compliance by amending local codes, aligning them with state requirements. The bill mandates a structured framework, facilitating ADU subdivision into individual ownership properties. With lifestyle migration influencing urban housing dynamics, local governments anticipate higher demand for independent ADU ownership as a flexible housing solution. Recently, San Francisco approved an ordinance on July 8, 2025, pending Mayor's signature, allowing separate sale of eligible ADUs, marking a major shift in lo...