Has anyone sold an ADU separately as a TIC in Los Angeles?

Has anyone sold an ADU separately as a TIC in Los Angeles?

Developer · Los Angeles, CA · Member since 2016 · 10 posts · 5 votes

Hi all!

Interested to know if anyone has had any luck selling an ADU as a TIC in Southern California? Any feedback would be greatly appreciated!

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Will BarnardPro Member
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Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
6y

NO, you can not separate and sell an ADU from the single family or multi family zoned lot. It violates the state bills passed Jan 1, 2020.

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  • Will BarnardPro Member
    Moderator
    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    6y

    NO, you can not separate and sell an ADU from the single family or multi family zoned lot. It violates the state bills passed Jan 1, 2020.

  • Developer · Sacramento, CA · Member since 2016 · 464 posts · 143 votes
    6y

    yea, you can't do that.

  • Rental Property Investor · Hawthorne, CA · Member since 2018 · 655 posts · 900 votes
    6y

    @Zabdiel Lugo

    Funny! Someone is always trying to come up with a new way to make money. Hey like it!!

  • Architect · Santa Cruz, CA. · Member since 2020 · 12 posts · 22 votes
    6y

    I believe it is possible to sell the ADU from the main residence (SFR or Multi-family), if you are a qualified non-profit creating low-income housing. Look up AB 587. It must be deed restricted and sold to qualified home buyers through a tenancy-in-common agreement.

    I do not have any personal experience with this but I’m sure there are companies in Southern California that you could talk with.

  • Lender · Irvine, CA · Member since 2018 · 71 posts · 15 votes
    6y

    TIC is co-owning a property. So if you TIC an SFR w/ ADU, you aren't selling the ADU itself - you can't anyway since ADU isn't an independent property/APN. You're selling ownership % to your new co-owner.

    If the co-owner owns 30% of your property and decides to live in ADU and you live in SFR, who's going to stop that? That's a private agreement/arrangement between the co-owners. CA has struck down many cities that tried to prohibit TIC ownership in court.

    I know this still sounds like you're "selling" the ADU but isn't. Selling is prohibited, and you really can't until subdivided.

    Now if you want to finance, that's a different story. There would have to be no restriction on the title for title insurances to issue insurance for lenders. 

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