Is Your Client Looking To Buy or Refinance a Cannabis Related Property?
Why Does The Title Company Need To Know It Is A Cannabis Related Real Estate Closing?
Due to constantly changing and often conflicting laws around marijuana, there are many hurdles and very limited financial services available for cannabis related businesses.
INSURE WITH CONFIDENCE. Certified Title CAN insure transactions that relate to cannabis properties in most instances.
Third Party Escrow Services For Marijuana Facility Closings
As more and more states are legalizing marijuana, some title companies have started to become more involved in cannabis-related real estate transactions. Certified Title evaluates on a case by case basis.
Cannabis Related Title Insurance Exceptions
Unlike underwriter’s who have agreed to insure cannabis real estate transactions, Certified Title does not have standard exceptions for cannabis related title policies. Generally, Certified Title treats cannabis related transactions as traditional commercial real estate transactions rather than a category of their own.
Requirements For Marijuana Property Title Insurance
If the property involved in the transaction is going to be used as a marijuana facility, or is already being used as a marijuana facility, the insurance company is likely going to have additional requirements that will need to be met before they will issue a title insurance policy. Our cannabis title insurance team has streamlined this process as much as possible, with the following additional requirements for all cannabis transactions:
- Property use relating to cannabis: (i.e. dispensary, grow facility).
- Insured’s relationship to the cannabis product: (i.e. Owner, Tenant, Lender).
- Due to the high risk associated with this type of transaction Certified Title will require an additional 10%
in remittance to issue policies. - Zoning Endorsements may only be issued if the zoning report/letter specifically addresses the use of
cannabis.
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