Warning over former grow-op homes

Homes that have been used for growing marijuana are becoming more difficult to buy and insure.

The Financial Post reports that mortgage lenders and insurance companies are increasingly declining applications for properties that have been used as grow ops due to the potential damage to the property.

Mould in the walls and chemicals that have permeated carpets and walls can cause costly issues and buyers may find that insurers and lenders insist on expensive tests before agreeing to proceed.

Brokers report that lenders will often refuse a loan even where there has been a single marijuana plant in the property and that, along with the potential damage, lenders are concerned that a criminal past of a property could affect its future resale value. 

There are no comments

Thank you! Your comment has been submitted and is awaiting approval.

Kevin Ikeda Chen

Kevin Ikeda Chen

Broker
CENTURY 21 Home Realty Inc., Brokerage*
Contact Me