Cannabis real estate creates one of the strangest situations in American commercial real estate.

The property itself is perfectly legal to own. The land, the building, the parking lot. None of it is federally prohibited. But the tenant's business, what happens inside the building, is illegal under federal law.

So where does that leave title insurance for a property used for cannabis cultivation, processing, or retail sales?

The answer is more nuanced than a simple yes or no. Here is what property owners, investors, and lenders need to understand.

The Federal-State Conflict

As of 2026, cannabis remains a Schedule I controlled substance under the Controlled Substances Act. Federal law prohibits the manufacture, distribution, and possession of cannabis. But 38 states, three territories, and the District of Columbia have legalized medical cannabis, and 24 states plus three territories have legalized adult-use recreational cannabis.

This creates a fundamental legal conflict. State law says the business is legal. Federal law says it is not. And title insurance, like almost everything else in real estate, exists within this tension.

Can You Get Title Insurance on a Cannabis Property?

Yes, you can. But it is not the same standard title policy you would get on a conventional commercial property. And not every title company will write one.

Most major title underwriters take one of three positions:

  • No cannabis properties. Some underwriters will not insure any property where cannabis is grown, processed, or sold. Period.
  • Case by case. Some underwriters will consider cannabis properties on a case-by-case basis, with additional due diligence, enhanced endorsements, and specific exclusions for losses arising from federal enforcement.
  • Full coverage (with exceptions). A smaller number of underwriters offer standard coverage but carve out losses caused by federal cannabis prohibition or forfeiture actions.

The key is knowing which underwriters will write the policy and what exclusions or limitations they will require.

The Forfeiture Issue

The biggest concern for title insurance on a cannabis property is federal forfeiture. Under federal law, property used in violation of the Controlled Substances Act can be seized and forfeited to the government, even if the owner is following state law.

In practice, the Department of Justice has largely not pursued forfeiture against state-legal cannabis operations since the Obama-era Cole Memo and subsequent enforcement guidance, though enforcement policy has shifted between administrations. But the legal authority exists, and title insurers cannot ignore it.

A standard title policy typically excludes losses arising from a government's exercise of its police power or the enforcement of a federal statute. Many underwriters consider federal cannabis enforcement to fall within that exclusion, which is why they add specific cannabis-related exclusions rather than relying on the general police-power exclusion.

What Cannabis Property Owners Should Look For

If you own or are considering buying a property used for cannabis operations, here is what you should look for in a title policy:

  • Does the policy specifically reference cannabis? A policy that simply relies on the standard government-exclusion clause may leave you in a gray area. You want to know whether cannabis-related losses are specifically addressed.
  • What is excluded? Some policies exclude only losses arising from federal forfeiture or enforcement. Others exclude any loss arising from cannabis activity at all, which can be much broader.
  • Is there an affirmative endorsement? Some underwriters offer endorsements that affirmatively cover certain risks, which can give both the owner and the lender more confidence.
  • Does the lender accept the policy? If you have a lender involved, they will have their own requirements. Not all lenders accept policies with cannabis-related exclusions.

Due Diligence Beyond Title Insurance

Title insurance is one piece of the puzzle. Cannabis property transactions also require careful attention to:

  • Zoning and land use. Local zoning ordinances often restrict where cannabis businesses can operate. Make sure the property is properly zoned for the intended use.
  • State licensing. Cannabis businesses require state licenses, and those licenses are often tied to specific locations. If the license is not transferable with the property, the value of the property may be significantly affected.
  • Environmental compliance. Cannabis cultivation can involve significant water use, pesticide application, and energy consumption. Environmental compliance is critical.
  • Lease terms. If you are leasing to a cannabis tenant, the lease should address what happens to improvements, what happens if federal enforcement changes, and who bears the risk of a change in federal policy.

How Viking Title Approaches Cannabis Properties

At Viking Title Agency, we work with property owners, investors, landlords, and lenders who have cannabis-related real estate. We understand the landscape, we know which underwriters will consider these properties, and we can help you understand what coverage is available and what it means.

Every cannabis property transaction is different. The state you are in matters. The type of cannabis operation matters. Whether there is a lender involved matters. And the current federal enforcement climate matters.

We cannot guarantee that every cannabis property can get standard title insurance. But we can tell you honestly what is available, what the exclusions mean, and what your options are.

The Bottom Line

Cannabis real estate is not going away. The industry is large, growing, and deeply tied to commercial real estate across the country. Title insurance for these properties is available, but it requires specialized knowledge and the right underwriting relationships.

If you own, finance, or are considering buying a property used for cannabis operations, do not assume standard title coverage is unavailable. But do not assume it works exactly the same as conventional commercial property either.

Talk to a title professional who understands the space.

This article provides general educational information and is not legal, title insurance, or regulatory advice. Cannabis laws, enforcement policies, and title insurance availability vary by state, lender, and underwriter. Always consult qualified legal and title professionals for guidance on your specific situation.