When Question 4 was passed by Massachusetts voters last November, proponents of the law celebrated.  The bill became law in December 2016, and legalized the possession of less than one ounce of marijuana in public and less than ten ounces inside homes by anyone age 21 or older.[1]  Naturally, since it is legal to have more marijuana inside the home, more and more people are growing marijuana in their homes, or choosing to smoke marijuana inside.  But what effect does that have on a homeowner or tenant?  As a tenant, could you get evicted?  What effect does it have if you are selling your home?

Since FHA and VA are federal loan programs, continuing to grow marijuana will put a borrower in default on their loan, due to the fact that it is considered an illegal activity.

The marijuana law, codified under M.G.L. c. 95G:

  • allows individuals to grow up to six marijuana plants for personal use
  • possess 10 ounces of marijuana in their home.[2]

However, although marijuana is legal in Massachusetts, it is still considered an illegal substance under federal law.  In addition to concerns about property damage, health, and safety, landlords who receive federal funding may be prohibited from renting to tenants that grow or use marijuana, as it is a violation of federal law.[3]  In fact, M.G.L. c. 95G, §2 states that “a lease agreement shall not prohibit a tenant from consuming marijuana…on or in property in which the tenant resides unless failing to do so would cause the landlord to violate a federal law or regulation”.[4]  As a result, landlords may discriminate against tenants and may specifically include clauses in leases that prohibit the growing or consumption of marijuana in apartments.

Growing marijuana in the home is, at this writing, considered a crime under federal law.  Potential homebuyers and sellers need to be aware of what is in the sales contract when it comes to marijuana grow operations. If you’re an FHA or VA federal loan recipient who continues to grow marijuana in Massachusetts, it could put you in default on your loan, due to the fact that it is considered an illegal activity.[5]  With that in mind, it is important to make sure that a purchase and sales agreement is carefully worded so as not to impose any liability on buyer or seller.

 

 

[1] Mass. Gen. Law c. 95G

[2] Mass. Gen. Law c. 95G

[3] http://realestate.boston.com/news/2017/04/26/renters-rights-and-marijuana/

[4] Mass. Gen. Law c. 95G

[5] http://realestate.boston.com/news/2017/04/20/marijuana-real-estate/