Diamond Real Estate Group

Start by identifying exactly what the seller is offering. A California cannabis real estate deal can include land, buildings, fixtures, an operating lease and a separate business. A buyer may assign a different value to each component depending on title, approvals, condition, usable infrastructure and the ability to occupy or re-lease the property after closing.

A well, creek or pond can make a farm look well supplied on a tour. Before you buy, verify who may use the water, where it can be used, when it is available and how much reaches the approved cultivation area. Compare the legal records with the actual water system and the site’s peak demand.

Financing a California cannabis property starts with the collateral and its proposed use. A vacant warehouse, a farm with existing cultivation permits and a storefront leased to an operator create different underwriting questions. Give your financing source a clear description of the cannabis use, occupancy and what you are buying before you rely on a term sheet.

Regulatory status reviewed November 12, 2026. The April 2026 federal rule placed FDA-approved marijuana products and marijuana subject to qualifying state medical licenses in Schedule III. DEA also ran a separate proceeding on a broader proposal. For a California property purchase or lease, the immediate questions are what activities the tenant is authorized to conduct, what ...

A California cannabis property purchase can involve four different records for the same address: the deed, local land-use approval, local operating authorization and state license. Start by matching the assessor’s parcel number (APN), premises address and legal entity across the records. One discrepancy can change the buyer’s ability to use the property after closing.

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