Legalization of cannabis: What impact on the real estate brokerage practice?

The federal bill C-45 (or Cannabis Act) and the provincial Bill 157 (or Act to constitute the Société québécoise du cannabis, to enact the Cannabis Regulation Act and to amend various highway safety-related provisions) received royal assent in June 2018 and the legalization of cannabis came into force on October 17, 2018. What impact does this Act have on your practice?

Despite these legislative changes, the broker’s duty to verify, disclose and advise remains unchanged.

Nevertheless, in practice you are asked to further discuss the cultivation of cannabis with your clients and must continue recording in writing any related factors that may adversely affect the parties or the object of the transaction.

In question D14.2of the Declarations by the seller of immovable (DS) form, you must disclose if, beyond the limits of federal and provincial legislation, if applicable, the property has already been used or is currently used to grow cannabis, whether for recreational or commercial purposes, and provide details in question D15 about the number of seedlings and cuttings for example.

Information about such an indoor cultivation is a significant indicator of potential damage associated with humidity and mould problems. That’s why you cannot perform a brokerage contract if the seller refuses to disclose any indoor cultivation.