Real Estate News

Marijuana Legalization

Dear Clients and Friends,

Marijuana will be legal shortly.  A person will be allowed to grow up to 4 plants in their home and smoke marijuana in their home legally.  From a real estate only point of view, this concerns me for the following reasons.

 Although we cannot predict the future, it is logical to assume the banking and mortgage industry will want homes where the occupants have grown marijuana tested for mould and other substances.  And in future real estate Agreements of Purchase and Sale, I can foresee the banks requiring a clause that states "The owners hereby agree that they or any other people have not grown any marijuana in the subject property."  And if people have grown marijuana, the banks will want air quality tests done or something to that effect.  If the tests are unsatisfactory, the banks refuse to give a mortgage or will give a mortgage at a higher interest rate.

Again, we don't know the future, and until we know how banks and mortgage companies will deal with the legalized marijuana decision.  My suggestion from a real estate perspective is for you not to grow any marijuana plant in your home or condominium.

Again, this is my opinion only, so deal with it as your see fit.

Michael Mealia
Re/Max Hallmark Realty Ltd.

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