Katelyn Baker
Well-Known Member
Like most seasoned real estate experts, Charlie Kimberly has seen his share of off-putting elements included in a home sale. But a recent listing in Northeast Portland forced him to wonder if what he was selling was legal: A large marijuana plant was growing in the backyard.
Turns out, it's fine with the state, with some restrictions; not so with the feds. Still, how would potential buyers react?
"I addressed it with the client, keeping his best interest at heart, and mentioned that it might not be acceptable to everyone," said Kimberly of the Portland Real Estate Group, who likened the federally illegal grow to something offensive or unsightly, like a rusted RV parked on the side of the house.
"I told him that we could leave it or take it out," he said.
Instead of pulling the plant, they pulled a photo of it near the house off real estate websites like Estately.
The plant also wasn't listed among the fenced property's features in marketing materials, but there was a reference to the fixer-upper at 1635 NE 155th Ave. being "on a very private dead-end street great for a little urban farm."
After almost 900 days on the market, a buyer paid $165,000 cash for the quarter-acre property that was sold "as is." Since there were fewer than four allowed cannabis plants on the residential site and the buyer didn't needed a loan, some potential legal issues were sidestepped.
But not all.
Buying a residential property with homegrown cannabis plants could set off legal problems at the federal and state level, and jeopardize a bank loan, said attorney Dave Kopilak of Emerge Law Group in Portland, which has expertise in cannabis and marijuana law.
Under federal law, the seller has committed a crime by growing the cannabis plants and, after the real estate transaction closes, so has the buyer if the buyer knowingly bought property with illegal plants on it.
Since federally insured financial institutions typically include a clause in mortgage documents that the owner cannot conduct an illegal activity, the buyer would risk defaulting under the loan if the plants were discovered after funds were issued.
The seller would be in violation of Oregon law if the seller receives any financial consideration specifically for the marijuana plants. If the seller markets the property as having the plants or asks for extra compensation as one would for a refrigerator or sofa, that would cross over into commercial use, which is prohibited under Oregon law.
Another sticking point could be the state statute that allows two adults in the household to share 16 ounces of marijuana. "It's not entirely clear, but when a new owner buys the house, it could be considered exceeding the homegrown delivery limit," said Kopilak.
Despite federal laws, homeowners currently are at low risk of being arrested if they are acting in compliance with state law. "For years, the federal government has adopted a policy of not enforcing federal marijuana laws in states that have a regulated legalization system," said Kopilak.
But that could change with President-elect Trump, he said, adding: "That's a wildcard."
News Moderator: Katelyn Baker 420 MAGAZINE ®
Full Article: Can You Sell A Home With Marijuana Plants? Best To Pull Them Out, Say Experts
Author: Janet Eastman
Contact: OregonLive
Photo Credit: Janet Eastman
Website: OregonLive
Turns out, it's fine with the state, with some restrictions; not so with the feds. Still, how would potential buyers react?
"I addressed it with the client, keeping his best interest at heart, and mentioned that it might not be acceptable to everyone," said Kimberly of the Portland Real Estate Group, who likened the federally illegal grow to something offensive or unsightly, like a rusted RV parked on the side of the house.
"I told him that we could leave it or take it out," he said.
Instead of pulling the plant, they pulled a photo of it near the house off real estate websites like Estately.
The plant also wasn't listed among the fenced property's features in marketing materials, but there was a reference to the fixer-upper at 1635 NE 155th Ave. being "on a very private dead-end street great for a little urban farm."
After almost 900 days on the market, a buyer paid $165,000 cash for the quarter-acre property that was sold "as is." Since there were fewer than four allowed cannabis plants on the residential site and the buyer didn't needed a loan, some potential legal issues were sidestepped.
But not all.
Buying a residential property with homegrown cannabis plants could set off legal problems at the federal and state level, and jeopardize a bank loan, said attorney Dave Kopilak of Emerge Law Group in Portland, which has expertise in cannabis and marijuana law.
Under federal law, the seller has committed a crime by growing the cannabis plants and, after the real estate transaction closes, so has the buyer if the buyer knowingly bought property with illegal plants on it.
Since federally insured financial institutions typically include a clause in mortgage documents that the owner cannot conduct an illegal activity, the buyer would risk defaulting under the loan if the plants were discovered after funds were issued.
The seller would be in violation of Oregon law if the seller receives any financial consideration specifically for the marijuana plants. If the seller markets the property as having the plants or asks for extra compensation as one would for a refrigerator or sofa, that would cross over into commercial use, which is prohibited under Oregon law.
Another sticking point could be the state statute that allows two adults in the household to share 16 ounces of marijuana. "It's not entirely clear, but when a new owner buys the house, it could be considered exceeding the homegrown delivery limit," said Kopilak.
Despite federal laws, homeowners currently are at low risk of being arrested if they are acting in compliance with state law. "For years, the federal government has adopted a policy of not enforcing federal marijuana laws in states that have a regulated legalization system," said Kopilak.
But that could change with President-elect Trump, he said, adding: "That's a wildcard."
News Moderator: Katelyn Baker 420 MAGAZINE ®
Full Article: Can You Sell A Home With Marijuana Plants? Best To Pull Them Out, Say Experts
Author: Janet Eastman
Contact: OregonLive
Photo Credit: Janet Eastman
Website: OregonLive
