Flipper/Rehabber · CA · Member since 2023 · 1k+ posts · 1k+ votes
I recently read that the City of San Jose will be the 1st to allow homeowners to sell their ADU separately from the primary. Makes wonder about property taxes, utilities separation, and many other things. What's everyone's thoughts on this?
Not sure how that would work-there is the fact that it could be a legal basement suite sharing utilities or a separate unit. How do you divide the land that comes with each (eg the yard, driveway, etc)?
Not sure how that would work-there is the fact that it could be a legal basement suite sharing utilities or a separate unit. How do you divide the land that comes with each (eg the yard, driveway, etc)?
You bring up great points! I doubt they've even thought about the points that you've brought up. Sounds like a logistical, taxation, billing, surveying, etc. disaster waiting to happen. I don't have any ADUs, but if I did I'd let you sell yours first to see how it went before I considered selling mine. haha.
Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
2y
Note a condo conversion and/or coop/TIC already permitted this but financing may have more options than TIC And process may be easier than a condo conversion
Condo conversions and TIC have been done for decades/years respectively. These issues have been resolved for these and I see little difference.
Make use of the right experts and it should have few difficulties.
Note a condo conversion and/or coop/TIC already permitted this but financing may have more options than TIC And process may be easier than a condo conversion
Condo conversions and TIC have been done for decades/years respectively. These issues have been resolved for these and I see little difference.
Make use of the right experts and it should have few difficulties.
good luck
Thanks Dan, I'm not selling one myself. I've known about TIC for years, but only seen it in urban areas like SF where an old apartment building is split up. I'm sure you know what the burbs in SJ are like, it makes me wonder about some of the questions above. How will property lines be split? Property taxes? What about people that have been using RUBS? Heck lots aren't even permitted lol.
You're one of the most informative posters on CA ADU's so appreciate your comment.
Note a condo conversion and/or coop/TIC already permitted this but financing may have more options than TIC And process may be easier than a condo conversion
Condo conversions and TIC have been done for decades/years respectively. These issues have been resolved for these and I see little difference.
Make use of the right experts and it should have few difficulties.
good luck
Thanks Dan, I'm not selling one myself. I've known about TIC for years, but only seen it in urban areas like SF where an old apartment building is split up. I'm sure you know what the burbs in SJ are like, it makes me wonder about some of the questions above. How will property lines be split? Property taxes? What about people that have been using RUBS? Heck lots aren't even permitted lol.
You're one of the most informative posters on CA ADU's so appreciate your comment.
My question is what do you see that is unique to selling an ADU separate from the primary unit compared to a condo conversion or TIC/coop? I cannot think of anything
I have a duplex that I found out a month ago that at some point in the past the property kitty corner had the units converted to condo and the owner is selling both units individually. I would like to converse with the owner on cost, process, hassle, lessons learned, etc but only the agent is at the open house. to have access to someone that has done it on a property that at least the corners touch would know virtually all the answers for me to do the same thing to my property.
Tic of course has even less issues because the jurisdiction is not significantly involved but it has financing hurdles to overcome.
Question is how painless will San Jose make the process? Will it be as cumbersome as condo conversions?
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
2y
@Alan F. doesn't this effectively decrease building lot size. That could pose a lot of issues with zoning and permitting making things more complicated.
@Alan F. doesn't this effectively decrease building lot size. That could pose a lot of issues with zoning and permitting making things more complicated.
Absolutely, what sparked my interest is several homeowners have asked my GC friends if they could build ADU' and sell them off. I guess they are looking at it as way to make some $ and lower they're property taxes. I see confusion on the horizon.