ISSUES IN CANNABIS REAL ESTATE
The cannabis real estate industry in Colorado is constantly changing and evolving. Thus, it is essential that cannabis dispensary owners retain an attorney with an understanding of the state/federal legal framework and how the client fits into it.
Many cannabis businesses lease the premises the dispensary will be located on. With the lease comes many factors an owner should consider before entering the lease. Some of these include base rent v. percentage based rent, rent commencement dates (and how they conflict with the license process), security deposits, compliance with the law clauses, tenant's control and use of the premises, landlord's access to the premises, indemnification, and IRC 280E.
Many dispensary owners are aware that conventional lending is unavailable to the industry because of the federal illegality of cannabis. Thus, the loans that dispensary owners may obtain are limited. The documents associated with the loan should be reviewed to ensure there are no detrimental caveats with regard to cannabis operations.
HOW WE CAN HELP YOU
Thorburn Law Group has over 30 years experience in commercial real estate and has been in the cannabis real estate sector for 8 years. We are aware of cannabis specific issues in real estate, and work hard to ensure that the process/paperwork is up to speed. We assist clients in various real estate transactions, including the following:
Drafting, reviewing, and negotiating leases, purchase agreements, deeds of trust, promissory notes, contracts for the sale, acquisition, development and/or conversion of properties and other real estate related documents
Litigating contracts for the purchase or sale of a property, property ownership, title issues, fraud and disclosure problems, easement disputes, foreclosure actions, evictions, leasing disputes, premises liability and multi-party construction defect litigation