Marijuana, Unintended Consequences – When Federal & State Laws Conflict

By John Farnam

Opinion

Ft Collins, CO –-(Ammoland.com)- More “Unintended Consequences!”

This from an attorney friend and colleague in WI:

“I am in the process of reviewing title-work in order to insure the purchase of commercial property for one of our clients.

I ran into this ‘exception clause.’

It is new! I’ve never seen it before:

‘Notice: Please be aware that, due to conflict between federal and state laws concerning the cultivation, distribution, manufacture, or sale of marijuana, the Company is not able to close, nor insure, any transaction involving property that is associated with these activities.’

This is a big deal, and I’m not at all sure many in the real estate industry are even aware of it yet.

But, they will be!

It means that a marijuana-growing operation, or establishment that ‘dispenses’ marijuana, cannot get title insurance for their property, making it nearly impossible to sell the property. Note that the clause above does not enumerate any kind of time limit!

When you can’t get title insurance, you can’t get a loan!

I’d hate to be a landlord who has a ‘dispensary tenant,’ looking to refinance, only to anguishingly discover his otherwise-valuable property is permanently ‘contaminated,’ and thus effectively …Read the Rest

Source:: AmmoLand