Cannabis Legalization: The 420 For Buyers and Sellers
While brand new cannabis legalization allows Canadians to consume recreational marijuana and grow up to four plants per household, there are other possible concerns for buyers and sellers alike. According to a recent survey, 57% of buyers would avoid a property where recreational cannabis was used when compared to a similar property where it was not used. Regardless of whether you are looking to buy or sell in the next year, here are some great tips.
Seller tip: Some people may have negative emotional experiences towards marijuana or religious beliefs that restrict it’s use. This can negatively affect value in a buyer’s mind and in some cases, turn a potential purchaser off of your property. If you are considering selling your home, consider removing any “special” plants, vaporizers and edibles first. Most importantly, please don’t leave any special cookies lying around unless you want your open house to turn into a new year’s eve party!
Buyer tip #1: Some condominium corporations may implement additional restrictions by way of a condominium corporation’s bylaws. If the right to consume cannabis is important to you, have your lawyer review the status certificate and identify any restrictions that may limit use. By default, marijuana consumption and growth are not allowed in interior common areas, however, you can consume marijuana in your suite and in exterior common areas. Every condominium corporation is different, so make sure that you do your due diligence and find out if the bylaws work for you!
Buyer tip #2: Home inspectors or appraisers could determine that the growth of marijuana has a negative impact on value. This could potentially create problems for buyer financing. Ensure that a seller warranty clause is added, in which, the seller agrees to not grow or consume recreational marijuana in the home prior to closing. This will help ensure that everything goes smoothly!
Our team is always here to help if you have any questions or if you’re thinkkng about buying, selling or investing in real estate in 2019!
*Please note, this blog is not intended to solicit those home buyers or home sellers that are under a current agency agreement*