medical marijuana.have some questions.

[Elliott]

OP said, I told my mortgage broker what I had going on in the basement. He told me I should not worry and that since it is not a "living space" is shouldnt make a difference.
Not a good reason. Never good to take advice from a MB.

 

[Pat Butler]

Well gee, I guess I'm glad I didn't have to appraise any of Bernie Madoff's properties that ended up being seized by the federal government. Some of that felonious conspiring he was convicted for almost certainly occurred at home.

There's a big difference between someone's activity at a house, and improvements at the house for whose purpose is illegal under federal law. And in the latter case, is pretty easy to distinguish. It's all a matter of common sense and the degree to which it is obvious. Do you not question the fact that marijuana possession is illegal under federal law? And why does the original poster even have any concerns if everything is above board?

There are plenty of fields on most appraisal forms that deal with things other than the condition of the house. Occupancy? Ownership? Do not think the lender is concerned about this? It's not for me to decide, but to at least report so that they can make a decision. There's no harm done if they want to ignore it.

Of course, in CA you have to deal with illegal activities all the time, especially in your cities. So I can see where a left coast attitude is one in which to ignore such things.

 

[Delta85]

There's that little box that requires the appraiser to check whether or not the the subject's present use complies with zoning. I think that might cause a problem here.

There are numerous fields on the various appraisal forms that the lender uses for other reasons than just 'getting the value'. They are relying upon the appraiser to be their eyes on the property. It's obviously a grey area with many issues but I think any use of the property that could possibly result in forfeiture of the property to a federal agency just might be something your client is interested in. If not, then they can ignore the information supplied by the appraiser. It's their call, but I don't want to be the one hiding information from my client.

I'm sympathetic with the poster in that this is for a medical purpose. But the details of that, along with the legality, is something for the lender to look into.

I disagree. What does zoning have to do with legally growing weed for personal medical use? Do you need zoning approval to have a tomato garden? Should I be familiar with various plants if I appraise a home with a greenhouse and be able to state whether or not zoning approves of each individual species of plant?

None of this is the appraisers business. Appraising the home is our business. There is a slippery slope of things that can go on in a home that the lender might want to look into but it's not our job to supply that info. It's not our job to be their eyes in terms of any and everything about the homeowners, just the home itself. If the home is taken by the feds in some drug sting how is that an appraisal issue? If I do an inspection and see several bricks of coke stacked up in the closet do I need to disclose this in the report or call the client and drop a dime? After all, there could potentially be a drug sting that results in a forfeiture.

That's quite a stretch.

 

[Mile High Trout]

while i am a proponent of medical marijuana due to family members this statement is not true. marijuana is still illegal under federal law in all states. this includes growing.

Nice.

It's illegal so that big paper and pharma can continue to rake billions in a system of proprietary access. It's our civil duty to stop such an approach. We the people, should have access to our own resources.

If there was a tatoo and piercing code for state MJ industry workers, 90% of them would be disqualified immediately.

 

[CANative]

I try not to say insulting things to people from fly over states because they don't know any better. But sometimes I'm really tempted.

 

[George Hatch]

There's a big difference between someone's activity at a house, and improvements at the house for whose purpose is illegal under federal law. And in the latter case, is pretty easy to distinguish. It's all a matter of common sense and the degree to which it is obvious. Do you not question the fact that marijuana possession is illegal under federal law? And why does the original poster even have any concerns if everything is above board?

There are plenty of fields on most appraisal forms that deal with things other than the condition of the house. Occupancy? Ownership? Do not think the lender is concerned about this? It's not for me to decide, but to at least report so that they can make a decision. There's no harm done if they want to ignore it.

Of course, in CA you have to deal with illegal activities all the time, especially in your cities. So I can see where a left coast attitude is one in which to ignore such things.

Touche. That left coast indicment sure left my ears burning, I'll tell you that.

Actually if you know anything about me you'd realize I have never smoked (anything), I only rarely drink (beer&wine only), and I limit my use of aspirins and OTC cold meds to the bare minimums. I have no use whatsoever for drug culture or stoners hiding behind various maladies including carpel tunnel syndrome, male pattern balding, or hand cramps. Even if they may be related to each other.

What I do care about is making the distinction between how the market reacts to an additional room that can be used for any number of uses from my moral outrage that (some) people like to get stoned and consider getting high to be an essential element of their life. If it's any consolation I have the same blind eye to unmarried cohabitation, sexual athletic apparatus hanging from the ceilings in the primary bedroom and hideaway Hindu alters in the living room.

There's a big fight between states rights vs federal rights on the pot issue. If lenders feel strongly enough about the risks from the feds they can ask me the question directly and I'll answer it directly. I see no evidence in the market of a discount for homes where someone may have 3 or more pot plants growing in their cornfield, or in their garden, or in their windowsill or in their basement.


In God I trust, all others bring data.

 

[Mile High Trout]

Your temptation got the better of you.

 

[William Rightsell]

I would think the concern by a lender of legal pot growing on-site would be outweighed by the risk of being sued for discriminating against someone with a medical condition and their prescribed medication.

If it isn't related to the real property , doesn't affect the marketability, and it isn't illegal, the lender shouldn't care how or to what degree it is disclosed.

Denis...

Another issue for an investor/bank here could be that under FEDERAL law it IS illegal. The Feds do NOT recognize medical marijuana. That might make it very hard to sue a nationally chartered bank. Their "prescribed" medication AND the act of growing/manufacturing it is actually illegal under federal law. Just a thought.

Interesting thread...and an issue that will ultimately have to be settled in the Supreme Court most likely.

To the OP....Somebody here mentioned that many appraisers probably wouldnt take a picture. I bet the opposite is true. I bet most would simply for the stories they could tell about it. How many would actually put it in the report is a different matter, but I bet most would take a photo just for the curiousity factor and for show and tell later!

todd

 

[William Rightsell]

I think another issue that might come into play is the fact that the appraiser now KNOWS that the home could possibly be confiscated if the Feds wish to push the issue. Probably would never happen, but it could. That leaves the lender in a bind. I bet IF it happened, the lender would go straight to the appraiser and scream bloody murder that he/she didnt tell them. Is that a material fact worthy of discloure under USPAP?? I don't know - I'm playinfg devils advocate here. Thinking out loud.

I would disclose and let the lender deal with it.

And to the OP....PLEASE do not take the word of your mortgage broker that its should be OK. All he wants is to make a loan. And he really has NO IDEA how the lender will react (if at all).

todd

 

[Tim The Enchanter]

What's the big deal about a greenhouse room? Sounds like there's no safety issues. I'm just growing some special hybrid orchids here.