Understanding Cannabis Title Insurance: What You Need to Know

The laws and regulations surrounding cannabis real estate transactions continue to evolve, particularly in Maryland, where the legalization of adult-use cannabis has introduced new opportunities and challenges. For real estate professionals, buyers, and lenders, navigating cannabis title insurance is more complex than traditional real estate transactions.

With the Trump administration now at the helm, uncertainty looms over the future of federal cannabis policy, raising new questions about the legal and regulatory landscape. Potential shifts in enforcement priorities and banking regulations could significantly impact cannabis-related real estate investments, requiring heightened diligence from industry stakeholders.

Certified Title Corporation has the expertise to guide you through these complexities, ensuring compliance and a smooth closing—no matter how the regulatory environment evolves.

Read on for key insights into what lies ahead and how we are support your cannabis real estate deal.

1. Full disclosure remains critical.

To avoid delays or complications in your real estate transaction, it’s important to disclose upfront that the property is cannabis related. Certified Title evaluates cannabis real estate closings on a case-by-case basis, so early disclosure allows us to determine if we can insure the transaction. Not all title companies are willing or able to provide cannabis title insurance, so working with experienced professionals is key.

2. Certified Title does not impose standard exceptions.

Unlike underwriters who add broad exceptions for cannabis-related title policies, Certified Title does not impose standard exclusions simply because a property is associated with cannabis. Instead, we treat these transactions as traditional commercial real estate closings, applying our extensive industry knowledge to ensure the best possible outcome for our clients.

3. We created a streamline title insurance process for cannabis transactions.

Cannabis-related title insurance transactions often require additional scrutiny compared to standard real estate deals. Certified Title has streamlined this process, making it as efficient as possible while maintaining compliance with Maryland laws. For all cannabis transactions, we require the following information upfront:

• Property use: Is the site intended for a dispensary, cultivation facility, or processing center?
• Insured’s relationship to cannabis operations: Are they the owner, tenant, or lender?
• Financial considerations: Due to the higher risk involved, Certified Title requires an additional 10% remittance to issue policies.
• Zoning requirements: Zoning endorsements are only issued if the zoning report/letter specifically states cannabis use is permitted on the property.

4. We are here to help you navigate Maryland’s cannabis regulations.

Maryland has specific zoning and licensing requirements for cannabis businesses. The Maryland Cannabis Administration (MCA) oversees the regulations for medical and adult-use cannabis operations, which impact where and how cannabis businesses can operate. Certified Title Corporation stays up to date on these laws and ensures our title insurance policies reflect the evolving cannabis landscape.

5. Why work with Certified Title?

Many title companies shy away from cannabis-related transactions due to uncertainty about legal and regulatory issues. Certified Title has decades of experience in real estate transactions and a deep understanding of cannabis title insurance Our team ensures that cannabis-related deals close smoothly and securely, without unnecessary delays or complications. With a proven track record and a commitment to serving Maryland’s cannabis industry, Certified Title is the go-to choice for cannabis-related title insurance in the region.

The cannabis real estate market is full of complexities, but with the right guidance, you can navigate it successfully. Whether you’re a buyer, lender, or real estate professional, Certified Title Corporation is your full-service partner for cannabis-related transactions.

If you have questions about cannabis title insurance or the title process for your transaction, our professionals are here to help. Contact us today for expert guidance and support.

About Certified Title Corporation: Since 1994, attorney-owned Certified Title Corporation has been furnishing residential and commercial real estate stakeholders across the nation with robust title insurance, settlement, and escrow services. Renowned for its industry-leading reliability and exemplary level of service and quality, the Maryland-based company helps clients from all walks of life achieve their asset goals. To learn more, call (888)486-5511 or visit https://www.certifiedtitlecorp.com/.