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"Grow Room"?

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Absolutely. I am not in law enforcement. I'd state the potential for an environmental hazard due to chemicals noted on site but that's it. I am not a chemist. I am not a botanist. I am not a cop.

When people let me into their house it there is a certain level of privacy I feel is due to them. I don't look at personal pictures, I don't care how they decorate, I can care less if they are sloppy, and I don't care if there is a dungeon or a pot farm in the back shed. Personal items and personal judgements are not what I am there for, ever.
First of all, I do not agree with federal laws regarding marijuana and other recreational drugs.

That being said, its not a personal judgment to point out activity that is illegal under Federal law that is occuring on the premises when such activity can and does have a negative effect on the suitability of that property to serve as collateral for a mortgage loan and, hence, whether or not the mortgage loan will be repaid (I am assuming that this is for a mortgage related appraisal).

Reporting such potentially negative property conditions goes to the very heart of our role as appraisers and those who would not do so because they believe that the underlying law is a bad law should turn in their appraisal licenses and not appraise anymore, because they are too ethically challenged to be trusted by the public.
 
http://www.legalmatch.com/law-library/article/marijuana-laws-in-california.html

I Have a Doctor's Note and Permission From my City to Grow Marijuana. Am I Immune from CA State Prosecution?

There is no easy answer to this question. While California has passed laws that allow the cultivation of Marijuana for medicinal purposes, the Federal government still considers it strictly illegal, and allows no medical exception. This has created a very awkward situation between the state and federal governments.

Some people might have a fully state-authorized program, or possibly even working FOR the state, to legally grow marijuana for medical patients. In this situation, regular police will not, and indeed cannot, arrest you. But because you are still violating federal law, any federal agent (FBI, DEA, etc...) CAN arrest you, and charge you with extremely serious crimes. If you are producing marijuana for a city, chances are you are doing so in great amount, which under federal rules can get you life in prison.

Although federal prosecutions for marijuana possession and cultivation make up less than 1% of all convictions, it is still a constant danger to anyone working in these fields. In a recent case, the judge refused to allow the defendant to even tell the jury that he was working for the city when he was arrested.

This is why it is very important to contact a good criminal attorney if you have been charged with any sort of marijuana crime in California. The complex nature of contradicting laws makes it all the more important that you have someone on your side who knows how best to defend you in these legal gray areas.

Is it Illegal to Grow Marijuana?

Yes. Federal and State law make it illegal to grow marijuana. Some states, such as California, allow the growth of medical marijuana by patients and care-givers. However, the U.S. Supreme Court has ruled that the Federal government may enforce Federal laws against the growth of marijuana, even if a State allows it for medical purposes. Because Federal law trumps State law, it is illegal to grow marijuana anywhere in America. Additionally, possession of marijuana seeds are illegal.
What are the Penalties for Growing Marijuana?

The penalties for growing marijuana depend on whether you are charged under Federal or State law.


  • Federal Penalties: Growing marijuana is a felony under Federal law. Penalties will vary according to the amount of marijuana that is found growing, measured by weight. Fines can range from $250,000 to $4,000,000. Incarceration can range from 5 to 40 years. Penalties are increased if marijuana is grown within 1,000 feet of a school or other specified area.
  • State Penalties: Generally, State laws on growing marijuana are less severe than Federal laws. Penalties will vary from State to State. Like Federal penalties, State penalties will depend on the amount of marijuana being grown. In some states, such as Washington, growing marijuana may be a misdemeanor, while in most states, it is a felony. States that allow the growth of medical marijuana have no penalties patients or care-givers.
If I was appraising this property, I would include the situation into the report. Because, as you can see from this lawyers website, state law is one thing but Federal law can trump state law. There are tons of seized houses for drug related crimes. The lender needs to be aware and you need to CYA against any future issues, IMO.
 
To All,

I wonder who all here would be posting what about this if that room were a meth lab instead of a pot growing operation?
 
To All,

I wonder who all here would be posting what about this if that room were a meth lab instead of a pot growing operation?

If they were comparable, it would be interesting.
 
To All,

I wonder who all here would be posting what about this if that room were a meth lab instead of a pot growing operation?

So are you agreeing that it should be disclosed?
 
If they were comparable, it would be interesting.

How about a counterfeiting operation? sans the State permit ; ) or a poppy processing room?
 
Absolutely. I am not in law enforcement. I'd state the potential for an environmental hazard due to chemicals noted on site but that's it. I am not a chemist. I am not a botanist. I am not a cop.

The appraiser is the eyes for the lender.

When people let me into their house it there is a certain level of privacy I feel is due to them.

Funny thing is, the lender is really the owner of the house. Typically they have a greater equity position than the occupant. I think reporting to the entity that will have the largest equity position the fact that their investment could be seized by the government is a rather relevant fact that they would like to know before lending. I certainly would like to know if it was my money on the line.

I don't look at personal pictures, I don't care how they decorate, I can care less if they are sloppy, and I don't care if there is a dungeon or a pot farm in the back shed. Personal items and personal judgements are not what I am there for, ever.

Nobody is going to seize a home for personal picture, decorations, or sloppiness. However, the potential for seizure exists regarding the matter at hand.
 
I agree that this should be disclosed to the lender. We are not talking about rumaging around someone's underwear drawer to find their stash.

If they have the permits to grow it, they can provide those to the lender, but the appraiser should disclose it in their report.
 
How about a counterfeiting operation? sans the State permit ; ) or a poppy processing room?

I feel safe taking from the tenor of your post that you assume I wouldn't report it. You know what they say about assuming. :new_smile-l:
I didn't write anything about not reporting it. And, where I live, I would report it. If I lived in CA I would likely include it in the report, as well. I'm not familiar enough with the laws there to say for sure, but I would think it likely.

However, both you and Barry comparing a grow room to a meth lab are just silly. There are ridiculous dangers that go along with meth labs, both to the cooks and to the house afterwards due to the toxins.

The problems with growing/cooking the two drugs aren't similar.
 
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I'd like to do a field review of that appraisal. What's the address?

TC
 
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