We recently assisted a client about an exception on a title policy for a property their borrower was in the process of purchasing. That exception was related to one of the existing tenants of the property which is a cannabis dispensary.
Our client was surprised to learn that while the title company would insure title, the title company would not provide escrow services for the acquisition or loan closing because of the cannabis dispensary.
The title company cited concerns with possible violation of Federal laws, such as the Controlled Substances Act, the Money Laundering Control Act and forfeiture laws. With our assistance, the client was able to obtain title insurance and close through an alternate title company.
No need to “weed” through this alone – we are happy to help you navigate this process. Several title companies currently have pilot programs in place in attempt to address the ongoing conflict between state and federal laws with respect to legalization of marijuana.
This document is intended for informational purposes only and is not legal advice or a substitute for consultation with a licensed legal professional in a particular case or circumstance.
Wendy M. Reutebuch | Practice Areas: Real Estate, Real Estate Finance and Creditors’ Rights
Wendy represents clients in both Illinois and Wisconsin in a wide variety of commercial real estate and real estate finance transactions. In addition to handling acquisitions, dispositions and leases, Wendy also advises lenders on loan transactions, loan workouts, loan restructurings, forbearance and pre-foreclosure matters. If you need assistance with a related matter, contact Wendy.