Marijuana and real estate - a Cape Girardeau discussion

Four words few people might have included in a sentence before Nov. 8, 2022 -- marijuana and real estate -- are today quite relevant for those who earn their livelihoods as Realtors.

Missouri voters on that date legalized adult use marijuana in the state with 65% approval, although the referendum failed in Cape Girardeau County with 56% disapproval.

On Thursday, April 27, a panel discussion aimed at getting answers about Realtor responsibilities about legal cannabis was held at the offices of Southeast Missouri Realtors, 78 S. Plaza Way, Cape Girardeau.

"We have a professional networking committee which had an idea to talk locally about recreational marijuana after hearing a presentation at a recent emerging issues forum held by Missouri Realtors," said Terry Baker, association executive for the local Realtors group -- which has 402 primary and secondary Realtors plus more than 100 people engaged in "affiliate" work, including home and commercial inspectors and appraisers, lenders, home warranty providers, attorneys and title company employees, among others.

"I think we just wanted to hear different ideas and we might want later to bring in an expert to talk with us," Baker added.

Missouri Realtors

On Jan. 18, 2023, at the state Realtors business conference in Kansas City, Missouri, then-acting director of the cannabis division of Missouri Health and Senior Services Lyndall Fraker reminded attendees marijuana remains federally illegal and read the words of the opening paragraph of the relevant section of the new voter-sanctioned 39-page state constitutional amendment.

"The purpose of this section is to make marijuana under state and local law for adults 21 years of age or older and to control commercial production and distribution under a system that licenses, regulates and taxes businesses involved while protecting public health."

Fraker said Missouri is operating within what he called "a narrow box" acceptable under federal law.

Paul Dizmang of Springfield, Missouri, who operates a property management company, addressed whether a property owner can prevent the growing of marijuana by one of his renters if the latter has a legal "grow" permit from the state.

"In order to grow, (a renter) needs to obtain a cultivation card. Without a card, if a renter grows, it's an illegal activity. Plus, the room where the marijuana is being grown must be locked up and inaccessible to others. Bottom line, though, is a landlord can deny to a tenant permission to grow either inside or outside the property under the new law," said Dizmang.

Dizmang and Fraker recommended owners of rental property seek out legal counsel to write any desired restrictions into leases.

More information on the ramifications of the new law is available at cannabis.mo.gov.