Marijuana growhouses: A few precautions

The seller’s broker knows ahead of time or learns after the signing of the brokerage contract that the property has been used as a growhouse:

1. The broker must ask the owner to amend his “Declarations by the Seller” form to declare that the property for sale has been used as a marijuana growhouse.

2. If the selling client fills out and signs the Amendments form as required, the broker must cross-reference this on the detailed description sheet.

3. The broker must recommend that the seller have the air quality tested on the property to determine the potential degree of contamination by mould spores. If air quality if good, the property should be tested for mould.

4. The broker must advise his selling client about the obligations and civil liability associated with the sale of such a property.

5. If the client refuses to complete and sign the Amendments form or allow his broker to disclose the fact that the property has been used to grow marijuana, the broker must refuse to put or continue putting the property on the market and simply terminate the Brokerage contract - Sale. This is a serious motive that amply warrants terminating the contract.

The buyer’s broker learns that the property has been used as a marijuana growhouse before submitting a promise to purchase:

1. The buyer’s broker must inform his client in writing of the potential problems that purchasing this type of property entails. He must advise him, among other things, to have the air quality tested in order to detect any contamination caused by mould spores that can be harmful to the health of future occupants. He must also advise him to carry out a test for mould.

2. It is also very important that the potential buyer have all electrical wiring checked by a master electrician, including the main mast. He must be informed of any potential capital losses and problems that could be encountered at the time of resale, as well as the difficulties of obtaining mortgage approval for himself or for any subsequent buyer. The buyer must also be told that the general condition of the property as well as the health of its future occupants could be compromised. Finally, he must be informed of possible difficulties he would experience in exercising his rights if the seller is not a resident of Québec (which is common in cases such as these) or if he is insolvent.

The broker learns that the property has been used as a marijuana growhouse once a promise to purchase is in progress or has already been accepted:

1. The broker must immediately inform all the parties, preferably in writing, of this new development. If the buyer wishes to pursue the transaction, an Amendments form must be completed and signed by the parties.

2. If the promise to purchase is in progress but has not yet been accepted, the seller’ broker may, if he can, ask his client to make a counter-proposal stating that the property has been used to grow cannabis.

3. If the promise has already been accepted, the broker must, as in Scenario B, inform the parties about potential problems in writing.