ADU's, sell separately from existing residence, is it possible?

[Eric R Stofa]

I would like to build an ADU, then, sell it separately. I understand this could be achieved through the process of Condo Mapping the site.

Has anyone been through this process? If so, what tips can you recommend?  

Is their an alternative to sell the ADU by itself?

[Carlos Carbajal]

@Eric R Stofa

There are two ways to sell an ADU.

1. The best way is to convert it to a condominium but this is typically difficult because the city or county will not always allow this.

2. The other way is to sell it as a TIC which stands for Tenancy in Common. This is a common way around condo conversion laws in San Francisco and a few other cities.

Buying a TIC is basically purchasing a share of the building and a contract that gives you exclusive rights to the unit you are buying.

It’s not as desirable as a condo but generally better than a co-op.

Only a few banks lend on TIC purchases in California. Sterling bank is the leader.