LE­GAL MAR­I­JUANA: IS YOUR IN­VEST­MENT GO­ING UP IN SMOKE?

Annex Post - - KIDS -

In­ter­na­tional and do­mes­tic pur­chasers of prop­er­ties for the pur­pose of rent­ing should know the im­pact of the Cannabis Act, 2017, which le­gal­izes the cul­ti­va­tion and use of mar­i­juana. Unchecked cannabis us­age can re­duce the value of your in­vest­ment. Most ren­tal units are con­do­mini­ums, and shar­ing space with oth­ers who in­tend on cul­ti­vat­ing and/or us­ing mar­i­juana can be a prob­lem. Condo boards can ei­ther de­cide to do noth­ing and rely on ex­ist­ing by­laws, rules and reg­u­la­tions, re­quir­ing own­ers not to cause nui­sance to oth­ers, or change the condo rules. The new law al­lows the smok­ing of cannabis where you can smoke. Ac­cord­ingly, condo boards may de­ter­mine to make the en­tire build­ing "smoke-free" and grand­fa­ther any­one who is smok­ing on the date the new rule comes into ef­fect, with the un­der­stand­ing that this will end if the unit is sold. Med­i­cal ex­emp­tions may be granted on very spe­cific terms. If a unit is al­ready rented, the ten­ant will likely have ac­knowl­edged that they agree to abide by the rules of the con­do­minium cor­po­ra­tion now and in the fu­ture. A ten­ant’s fail­ure to com­ply with new rules re­gard­ing cannabis can lead to evic­tion by ei­ther the con­do­minium board or the land­lord, if they can demon­strate that the ten­ant is ei­ther both­er­ing other ten­ants or dam­ag­ing prop­erty. There are clauses for new leases which pro­vide the Land­lord/owner the prto­tec­tion they need; make sure your lease agree­ment is up­dated. Your con­do­minium board is your first and best line of de­fence when deal­ing with cannabis is­sues. Get in­volved. Fi­nally, in­sur­ance re­quires dis­clo­sure; use of cannabis can in­crease the risk of dam­age to your prop­erty. You get what you in­spect, not ex­pect! The Land­lord and Ten­ant Act al­lows for pe­ri­odic in­spec­tions of the ren­tal unit to en­sure com­pli­ance and re­duce your risk.

Gra­ham F. Al­loway Bro­ker, B.A., LL.B. Hons Gra­ham Al­loway is the founder of both ReaLawS­tate Re­alty Bro­ker­age Inc. and the law firm Al­loway and As­so­ciates Pro­fes­sional Cor­po­ra­tion, a dis­tin­guished firm with over twenty-five years of ex­pe­ri­ence in the ar­eas of real es­tate, bank­ing and fi­nance, and cor­po­rate law.

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