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Law Educator, Esq.
Law Educator, Esq., Lawyer
Category: Real Estate Law
Satisfied Customers: 117433
Experience:  Licensed attorney practicing landlord-tenant, land use and other real estate law and litigation.
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I'm in Colorado where growing and consuming medical

Customer Question

I'm in Colorado where growing and consuming medical marijuana is legal at the State level. My house is under contract and my realtor says that i have to disclose that the premises may have been used previously to grow medical marijuana. They say that if I don't disclose then I could be sued after the fact. Sued for what? It's my contention that if the premises were previously used for that purpose it would have been under a medical marijuana card which I would assume is protected information under HIPAA.
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Law Educator, Esq. replied 1 year ago.

Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.

While it is legal under Colorado law, there are TWO problems. The first problem lenders have is it is a violation of federal law and it could be subject to seizure in a federal charge or federal civil suit as proceeds from illegal activities. So if you do not disclose and it is attached in some federal action, you are liable. Also, because marijuana is illegal under Federal law, HIPAA provides no protection, only the Colorado medical record confidentiality laws apply.

The problem is the rub between state and federal laws and federal laws still come into play in many situations and that is the reason for the disclosure.

The Second problem is because of the high humidity that marijuana takes to grow, that type of humidity can cause damage to the property and wood. It can cause mold and other issues. Thus, the National Association of Realtors states this is something that must be disclosed.

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