Top Five Mistakes Real Estate Brokers Make Handling Oregon Marijuana Deals

CANNANNEW REPORT

Real estate transactions involving the sale of an OLCC license are complicated, and usually require multiple contracts working together harmoniously. These transactions can be difficult to navigate due to the interplay between real estate, corporate and regulatory law. For instance, a purchase and sale agreement (PSA) for the real estate and an asset purchase agreement (APA) for the OLCC license and other business assets are required, and often a management agreement will be needed because the buyer wants to start working in the OLLC licensed marijuana business before the transactions close. Over the years, our firm’s cannabis attorneys have seen costly litigation arising when these transactions were bungled by real estate brokers who mistakenly think the multi-faceted deal terms could be crammed into the boilerplate real estate agreement (Boilerplate REA) commonly used by Oregon brokers. Here are the 5 biggest mistakes made by Oregon real estate brokers: Mistake #1: Brokers failing to refer clients to a cannabis attorney before any documents are signed. Transactions involving the sale of property and an OLCC licensed business involve complicated real estate, business, and regulatory issues. Having a cannabis law firm assist with these issues at the outset benefits the broker and their client; engaging both sets of professionals, each with highly specialized knowledge, leads to a much higher success rate for our clients by working out the myriad issues in the beginning so the parties enter well-drafted contracts, the deal has its best chance of closing in a timely manner, and without litigation. At a minimum, an APA must be drafted for the sale of the OLCC marijuana license and any other assets that will be sold. The OLCC license should not be included as personal property in the PSA for many reasons, one being that it is likely the OLCC license is owned by…

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Source : Top Five Mistakes Real Estate Brokers Make Handling Oregon Marijuana Deals

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