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Duty To Disclose Prior "illegal Indoor Grow" ?

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Ca Ar Independent

Senior Member
Joined
Sep 24, 2011
Professional Status
Certified Residential Appraiser
State
California
As my market area grapples with their position on commercial cannabis grows, there have been a number of houses purchased for and transformed for illegal indoor growing. A turn in the tide has resulted in many of these grows being busted and I am observing as they come back on the market. There is no disclosure by the realtor (repeat listing agent) of the prior activity. Opinions on disclosure?
 

Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
What remains with the property that would impact a buyer's decision?

Pot is not like meth, with hazardous chemicals that permeate sheet rock.

Unless they do that with fertilizer these days.

.
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
If RE agent does not disclose it and if all prior evidence is gone of former illegal grow use, how to you happen to know a house was prior used for illegal grow use?

Also your post starts off talking about commercial cannabis, but there is a big difference between a license to grow medical marijuana ( legal at least in a state that voted for it), and illegal grow use as a street drug.
 

Ca Ar Independent

Senior Member
Joined
Sep 24, 2011
Professional Status
Certified Residential Appraiser
State
California
If RE agent does not disclose it and if all prior evidence is gone of former illegal grow use, how to you happen to know a house was prior used for illegal grow use?

Also your post starts off talking about commercial cannabis, but there is a big difference between a license to grow medical marijuana ( legal at least in a state that voted for it), and illegal grow use as a street drug.[/QUOTE

The bust was in the paper with photos of the house. The listing is in in the MLS. This is an indoor commercial grow, not the State permitted 6 plants.
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
Assuming this is your subject- ask RE agent why they are not disclosing it, or do they plan to discuss it with buyers?

For clarity sake with client, imo disclose it in the appraisal, and then state that there is no current illegal use or grow use of the property. Whether the value is affected I could not say-depends on if house was repaired afterward, with no current clue it was ever used for that, how big a deal it was in local news ( many don't read newspapers anymore so one might question influence of local newspaper unless the story makes it to TV/other media)
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
IMO, unless you can demonstrate a negative market impact, it would come under a 'comment and move on' situation. Tat being said, I have seen such grow houses seized by the cops, then resold, sometimes at a discount to other cops.

So the answer is, depends on the situation.
 

George Hatch

Elite Member
Gold Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
California
The only reason I can think of that you'd even bother with "comment and move on" would be the potential - however unlikely or minimal - hazmat issue from herbicides, pesticides and the like. Horticulture is like pets - it speaks to the current occupancy. From a valuation or marketability perspective it's literally here today and gone tomorrow.
 

form1025

Member
Joined
Jul 11, 2009
Professional Status
Certified Residential Appraiser
State
Illinois
What is the difference between a regular house plant and a cannabis plant and what is the difference between cigarette smoke residue and cannabis smoke residue as it relates to being inside a house.
 

JTip

Elite Member
Joined
Oct 12, 2004
Professional Status
Certified Residential Appraiser
State
Pennsylvania
What is the difference between a regular house plant and a cannabis plant and what is the difference between cigarette smoke residue and cannabis smoke residue as it relates to being inside a house.
Especially in California.....
 

TRESinc

Elite Member
Joined
Dec 1, 2011
Professional Status
Licensed Appraiser
State
Ohio
Assuming this is your subject- ask RE agent why they are not disclosing it

unless a local law requires it why would an agent disclose something that may harm the sale? i don't live in CA and i don't pretend to know their laws.

do they disclose when someone is operating a house of ill repute illegally? i would be more concerned with the "leftovers" of that than i would a plant growing operation.
 
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