Cannabis legalization and Real Estate

Cannabis legalization and Real Estate: What you need to know

October 26, 2018

Categorised in:

Whether you’re a buyer, seller, landlord, or tenant, the new cannabis legislation enacted on October 17 affects you. The regulations contained in the act have given rise to new responsibilities. Here’s what you need to know.

Risks of cultivation for a house

Cannabis plants require almost 100% humidity and a house that is too humid isn’t healthy. Excess humidity builds up in the walls and ceilings until it completely infects the property with mold. This is known as contamination.

Seller’s responsibilities

On the seller’s side, transparency is paramount. If cannabis has been cultivated in the property (no matter how many plants it must be reported in the seller’s declaration. This information could affect a potential buyer’s decision.

Buyers

If you want to purchase a property where cannabis has been grown, you’ll need to call in an expert who will conduct a thorough inspection to determine whether the property is inhabitable. The inspection will give you a clear idea of how much work will be required to clean up your future home.

If a house has already been decontaminated, ask for invoices and warranties from the companies that carried out the work.

Real estate brokers

In order to properly inform clients who are selling or buying, real estate brokers need to do their homework. If a broker is representing a seller, they must make sure that any prior cultivation of cannabis is included in the seller’s declaration.

In the case of cannabis cultivation for medical purposes, brokers must obtain the documentation authorizing such cultivation and inform potential buyers.

And renting?

If a dwelling is currently rented, the landlord has 90 days to add a clause to the lease that prohibits the use of marijuana. For new leases, the clause can simply be added to the rental agreement that will be signed by both parties.

It’s important to remember that it is prohibited to grow cannabis for personal use at home in Quebec.

For more information

Government of Canada:Canada.ca

Government of Quebec:Quebec Government

Régie du logement:Rdl.ca



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