How legalized cannabis could affect residential home transactions

By Brian Phillips ( April 20, 2018, 7:53 AM EDT) -- Most buyers and sellers will be familiar with the standard agreement warranty by sellers that, during the time that the seller has owned the property, the seller has not caused any building to be insulated with Urea Formaldehyde Foam Insulation (UFFI) and that to the best of the seller’s knowledge no building contains or has ever contained UFFI. As practitioners, we also occasionally see a warranty of a similar nature, which has the sellers provide assurances to the buyers that they are not aware of any illegal use of the property. This provision has generally been intended to provide assurances to the buyers that the house has never been used as an illegal cannabis grow op....