Has anyone sold an ADU separately as a TIC in Los Angeles?
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!
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.
yea, you can't do that.
@Zabdiel Lugo
Funny! Someone is always trying to come up with a new way to make money. Hey like it!!
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.
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.