California Surveyors Forums

Had an interesting talk with a realtor friend. They asked me if a condo conversion of an existing duplex is legal in CA.

They've been successful with building a NEW duplex from scratch as a condo, so asked me why not existing? I mentioned zoning / planning etc would likely object, but I wonder in the modern SB9 / SB10 era whether or not it's possible.

It has been possible. The high ticket item is each unit has to have separate utilities to be converted to a condominium.

Google "Pam Julien Houchen is sentenced to 37 months and must pay $140000 in restitution for condo conversion scam." To find out what happens when you don't separate the utilities and follow the law.

DWoolley

Thank you Mr. Wooley I'll take a look at that.

I've been involved in Commercial conversions but never an already existing residential.

Ok for anyone who may end up doing one of these I've learned some things this week.

- Fire Separation of the party wall might be an issue. Older Duplexes might need to be upgraded if the units will now be sold separately.
- Tenants may have right of first refusal. Their income may come into play a bit but that I'm not too clear on how. This is a planning issue.
- Still need to form an HOA and condo docs. Finding a managment company to manage a two unit HOA for a reasonable price is difficult.

falcon wrote: Tue Apr 23, 2024 7:52 am Ok for anyone who may end up doing one of these I've learned some things this week.

- Fire Separation of the party wall might be an issue. Older Duplexes might need to be upgraded if the units will now be sold separately.
- Tenants may have right of first refusal. Their income may come into play a bit but that I'm not too clear on how. This is a planning issue.
- Still need to form an HOA and condo docs. Finding a managment company to manage a two unit HOA for a reasonable price is difficult.

This is interesting. My understanding of the SB-9/SB-10 streamline subdivision theory was that we should be able to draw a property line through an existing residence and sell off each side.

As you have demonstrated, the practical application may be more complex. I had already encountered the separate utiltity situation but I had not considered these other aspects.

Can someone explain the distinction between condo and duplex (or what is the advantage of a condo)?

Thank you for the discussion!

Can someone explain the distinction between condo and duplex (or what is the advantage of a condo)?

I'm not an expert in the subject, but:

A duplex is 1 piece of real estate with 2 rentable living spaces. 1 landlord, 2 tenants. Simple administration.

A 2-unit condo is 3 pieces of real estate: 2 homes plus a common area. 3 owners: 2 unit owners and the HOA. Lots of administrative overhead per unit.

A split-lot duplex (sometimes called townhomes) is similar to a duplex (there are some construction differences, but not all that many), except that it's 2 pieces of real estate from the get-go, and the buildings share a zero-setback wall line.

I did condo conversions in San Francisco in a past life. Two, three, four rental unit building to condos.