The Appraiser and Marijuana

By | December 23, 2018

Landy Insurance published an article written by Jennifer L. Markowski, a partner at Peabody & Arnold LLP, titled “Marijuana and the Residential Appraiser.”

Although Virginia has not legalized marijuana, the guidance within the article is worthy of sharing. Appraisers need to be cautious when describing or reporting marijuana growing on a property.

“While the mere existence of a marijuana plant is unlikely to affect the appraisal of a property, the sometimes elaborate lighting and irrigation systems used to cultivate the plants might.”

The article additionally warns appraisers to be very cautious when lenders have specific criteria pertaining to marijuana outlined in their engagement letters. Appraisers should not opine unless they are specifically trained in plants and their cultivation. See the article on Landy’s Blog here.

3 thoughts on “The Appraiser and Marijuana

  1. Mike Ford, American Guild of Appraisers

    The advice to not opine is garbage and not worthy of consideration. We are professional real estate appraisers and are required to recognize and consider the impact on value and marketability of the issues or things we see. When an E and O providers finally grows a spine; degend what is right and quits caving in to cheapest solutions I may listen to them.

    When corelamode first told appraisers not to ask questions or report MJ grow operations for BofA loans I complained to federal regulators About that dgtegious violation of Dodd Frank on behalf of AGA and other honest appraisers.

    Soon thereafter OCC replied saying the issue was resolved. A few very short days later Corelamode revised their instructions to appraisers to follow USPAP and all state and federal laws. We concur.

    Reply
  2. Mike Ford, American Guild of Appraisers

    DeFends & egregious* typos in last post. Apologies.

    Reply

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