California Company Is Building ADUs to Be Sold Separately From the Home. Is This Legal In Your State?

Bay Area real estate developer AlphaX RE Capital completed the ADU and hopes to put two more of these types of homes on the market in the fall. The company has plans to build hundreds more in the future, appealing to Bay Area homeowners who want to convert a portion of their land, as well as build the homes on land they already own. Their ultimate goal is to make this new property type “a more normal part of the housing ecosystem,” said Jia Li, the company’s chief asset management officer.

Many empty nesters who no longer want to maintain their large backyard and also would love some cash flow have reached out.

By Tessa McLean, California Editor

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Regardless of its physical form (backyard cottage, basement apartment, etc.), legally an ADU is part of the same property as the main home. It cannot be bought or sold separately in Montana, as a condominium or a dwelling on wheels might be. The owner of the ADU is the owner of the main home.