Commercial Leasing

The Moskowitz, LLP Cannabis Practice Group provides a full range of legal and tax services for California marijuana-related businesses, including (but not limited to):

Tax Issues

Government Relations

  •  Assistance with financial service and monetary issues
  •  Federal and state regulatory compliance (Bank Secrecy Act)
  •  Challenging law and administrative decisions, including business license revocations and denials, fines, sanctions, and penalties for violations

Real Estate

Corporate Matters

  •  Business entity formation
  •  Creation of operational plans
  •  Investor relations
  •  Shareholder agreements
  •  Purchase/sales agreements

Contact the Cannabis Practice Group

 
   


Leasing to a marijuana business can be a lucrative endeavor, but it still presents a greater risk to a property owner than a lease to another type of commercial venture. Marijuana is still illegal under the Controlled Substances Act, and the federal government has been known to seize property if it is being used for growing, cultivating, and distributing cannabis and cannabis products. There is also a remote possibility of the landlord being arrested.

Under the Rohrabacher-Farr Amendment of the 2016 Omnibus Appropriations Bill, the Department of Justice is prohibited from using federal funds to prosecute medical marijuana businesses in states where marijuana is legal. However, it does not address asset forfeitures in cases involving recreational marijuana, which will be available for adult use in California in January of 2018. In addition, the Trump administration’s cannabis “policies” leave many unanswered questions, and both landlords and tenants must be prepared for the possibility of increased federal interference.

Federal asset forfeiture

Any real property used to facilitate federal crimes – even if the activity is legal in the state – may be subject to civil asset forfeiture. The federal government doesn’t even need to prove the landlord’s guilt, only that there is a substantial connection between the property and the crime. For these reasons, and due to evolving state cannabis policies, commercial leasing agreements with marijuana-related businesses warrant far more than standard, boilerplate language.

Among other things, commercial leases with marijuana businesses [link to blog post on this topic] must specifically address and provide a strict code of conduct for the property’s intended use, and should include other provisions that distance the landlord from the tenant’s marijuana business activities.

Commercial lease agreements for and with marijuana enterprises

Landlords and marijuana businesses must be wary of leases that would invite federal scrutiny. The real estate attorneys in Moskowitz, LLP’s Cannabis Practice Group routinely handle commercial lease agreements specifically designed for and with cannabusinesses. We can work with you to install safeguards in your commercial lease that will minimize the risk to your business or property.


Disclaimer: Growing, cultivating and distributing marijuana are violations of federal law under the Controlled Substances Act, Title 21, Section 841(a)(1). The tax firm of Moskowitz, LLP can assist you in adhering to state and local law and regulations, and advise you how to conduct your operations in a way that will minimize your risk of federal prosecution. However, we do not intend for our advice to assist you in the violation of any law and in light of the evolving nature of the marijuana industry in the U.S., clients must understand that our legal and tax services can guarantee neither success nor immunity from civil and/or criminal prosecution. In all areas where the legal landscape is constantly changing, we recommend that our clients act with caution, stay abreast of developments in the industry, and consult with us often.

Tax Topics Blog

Marijuana Accounting and Legal Compliance

Mon, 3 Jul 2017 19:08:00 -0500

The Cannabusiness Plan

Fri, 30 Jun 2017 18:55:00 -0500
Marijuana Accounting and Legal Compliance
Mon, 3 Jul 2017 19:08:00 -0500
The Cannabusiness Plan
Fri, 30 Jun 2017 18:55:00 -0500

Request a Consultation

   
Our Team   |   Disclaimer   |   RSS   |   Privacy
© Copyright 2007, 2016 Moskowitz LLP all rights reserved.
   
 
 
Linkedin icon   Twitter iconHTML5 Validation
Intelligent Design by: Shawn Hyde