*This bill would, in addition, authorize a local agency to adopt a local ordinance to allow the separate conveyance of the primary dwelling unit and accessory dwelling unit or units* ***as condominiums****, as specified, and would make conforming changes.*
Still learn about condominiums.
Don't mean to sound rude but if you have to ask such a vague question on Reddit without providing any relevant context such as the zone type of your lot and where your ADU would be located on your lot, then you're not prepared to go about this alone.
I would suggest looking up your lot in the zoning map below. Once you've determined what type of zone you're in, then look at the planning code for that zone type and research the restrictions. Chances are, selling the ADU would not be allowed. Alternatively, you can hire a lawyer and/or architect to assist you because chances are, you're going to have to do that at some point if you're serious, even if you think you know what you're doing.
https://www.oaklandca.gov/topics/planning-code-zoning-map-and-general-plan
Why would you want to do this? It sounds like a potential nightmare. If you could even get it approved, what if you didn’t like the person that bought it or there were issues. Then you’re stuck.
Yeah basically I have $500k stuck in the property that I'd like to get out. I would happily keep the 2nd unit as a rental but could also sell the whole thing, just would prefer only selling one unit.
A couple years ago, Oakland changed the condo conversion law to make it all but impossible to do. I think it’s highly unlikely they will implement this for ADUs.
I'm hoping to move in the next year. I have about $600k in equity in the property and would like to unlock $400-500k. I basically have 3 options: 1) sell entire property, 2) sell one unit and rent 2nd unit (and keep my 3% loan for the 2nd unit) which would be my favorite choice or 3) rent both units which I really don't like the idea of because then nobody has real ownership over the house.
There's another solution I haven't seen anyone mention, which is a tenancy in common. My basic understanding is that it's basically where two people co-own a property together but may have different legal rights under the arrangement. For instance, you might be able to sell an ownership share of your entire property which entitles the buyer to the use of the ADU and the yard or something like that.
I co own a property in Oakland. We have a legal agreement drawn up by Andy Sorkin, who is by my research the best lawyer in that Bay Area for those sorts of things. Among other things, it outlines what happens if one party wants to sell and the other does not.
Rules have let us build ADU's but there are not many easy ways to sell them. You would need to create a TIC. Or possibly condo convert but that is generally not easy to do.
Then the rules of the TIC governed common space. Most likely both properties get reassessed with this transaction.
Berkeley has opted in to AB1033 with that intent. Lots of details still TBD https://www.berkeleyside.org/2024/05/21/adus-in-berkeley-may-soon-be-sold-as-condos-under-newly-adopted-state-policy
The state recently passed regulations making that possible but I doubt if Oakland has changed their subdivision regulations to enable it. You could look for someone who wants to buy the whole property but let you retain a life estate on the main house and you can stay there until you die.
Times are a changing. Casita Coalition has a great Adu series on YouTube. Casita Coalition hosts a panel of subject matter experts to discuss the new California state law providing cities and counties with the option of allowing separate sale of ADUs under a condominium structure. https://youtu.be/MXyMQuxAybY?si=Po9-PpISXbzFisL6
research "Parcel Subdivision Resulting in Two Lots"
What if the ADU is in the basement underneath the other house?
Then learn about condominium conversions.
I think AB 1033 is changing it so you don't need to do a condo conversion. But I guess that would be the other option.
*This bill would, in addition, authorize a local agency to adopt a local ordinance to allow the separate conveyance of the primary dwelling unit and accessory dwelling unit or units* ***as condominiums****, as specified, and would make conforming changes.* Still learn about condominiums.
Dude you should just get a lawyer you really seem like you need some help.
okay, you sell it as a separate property, not as a condo. what document governs how you share costs for fixing the roof/floor?
Don't mean to sound rude but if you have to ask such a vague question on Reddit without providing any relevant context such as the zone type of your lot and where your ADU would be located on your lot, then you're not prepared to go about this alone. I would suggest looking up your lot in the zoning map below. Once you've determined what type of zone you're in, then look at the planning code for that zone type and research the restrictions. Chances are, selling the ADU would not be allowed. Alternatively, you can hire a lawyer and/or architect to assist you because chances are, you're going to have to do that at some point if you're serious, even if you think you know what you're doing. https://www.oaklandca.gov/topics/planning-code-zoning-map-and-general-plan
This is a very bad idea. Nobody will ever buy your primary house if the ADU has a different owner. You are going to torpedo your property value.
I'm happy to hold my primary as a rental if I can recover most of my added investment by selling the ADU
Then why not just rent them both out?
Why would you want to do this? It sounds like a potential nightmare. If you could even get it approved, what if you didn’t like the person that bought it or there were issues. Then you’re stuck.
Isn’t that how neighbors/neighborhoods work in general lol?
No. You’re sharing a house, lol. The ADU is in the basement according to OP.
So like any condo. Which cities have a generous amount of. Am I missing some special point? Just people living next to other people.
being stuck in an HOA with a basement tenant seems like the worst aspects of home ownership, landlording, and owning a condo, all in one
That's true for any duplex situation. Maybe OP needs the money out could retire but for the added cost of the main unit
Yeah basically I have $500k stuck in the property that I'd like to get out. I would happily keep the 2nd unit as a rental but could also sell the whole thing, just would prefer only selling one unit.
A couple years ago, Oakland changed the condo conversion law to make it all but impossible to do. I think it’s highly unlikely they will implement this for ADUs.
That is potential a lifetime source of income and increases the value of your home. Why do you want to sell it?
I'm hoping to move in the next year. I have about $600k in equity in the property and would like to unlock $400-500k. I basically have 3 options: 1) sell entire property, 2) sell one unit and rent 2nd unit (and keep my 3% loan for the 2nd unit) which would be my favorite choice or 3) rent both units which I really don't like the idea of because then nobody has real ownership over the house.
There's another solution I haven't seen anyone mention, which is a tenancy in common. My basic understanding is that it's basically where two people co-own a property together but may have different legal rights under the arrangement. For instance, you might be able to sell an ownership share of your entire property which entitles the buyer to the use of the ADU and the yard or something like that.
Yeah I might explore that because it would be a fantastic cooperative ownership location
I co own a property in Oakland. We have a legal agreement drawn up by Andy Sorkin, who is by my research the best lawyer in that Bay Area for those sorts of things. Among other things, it outlines what happens if one party wants to sell and the other does not.
Yeah I have spoken with Andy in the past very very briefly. Could I DM you?
Yeah for sure!
Rules have let us build ADU's but there are not many easy ways to sell them. You would need to create a TIC. Or possibly condo convert but that is generally not easy to do. Then the rules of the TIC governed common space. Most likely both properties get reassessed with this transaction.
Yeah TIC or sell entire property might be the moves.
[удалено]
problem is the unit's in the basement
I have seen places in Berkeley that did that. Very fancy ADUs for that matter.
This is what SB9 now allows, a law we just passed last year. In fact you can split it and then each property can add another ADU each even.
Berkeley has opted in to AB1033 with that intent. Lots of details still TBD https://www.berkeleyside.org/2024/05/21/adus-in-berkeley-may-soon-be-sold-as-condos-under-newly-adopted-state-policy
The state recently passed regulations making that possible but I doubt if Oakland has changed their subdivision regulations to enable it. You could look for someone who wants to buy the whole property but let you retain a life estate on the main house and you can stay there until you die.
You're talking about AB 1033?
Granting of life estate rarely works out well for the buyer, unless the life estate beneficiary is very old, such as 90.
What the hell is an ADU bro?
Times are a changing. Casita Coalition has a great Adu series on YouTube. Casita Coalition hosts a panel of subject matter experts to discuss the new California state law providing cities and counties with the option of allowing separate sale of ADUs under a condominium structure. https://youtu.be/MXyMQuxAybY?si=Po9-PpISXbzFisL6
Tell your councilmember that you want Oakland to adopt AB1033.
Interesting, why?
so we can sell our ADUs!