Bill Giving Cannabis Companies Access to Banking, Title Insurance Passes HouseOctober 10, 2019
While many states move ahead with legalizing cannabis, the federal government has been slow to respond. This discrepancy between state and federal law presents challenges for state-legal cannabis businesses, whether medical or recreational. Now, a bill has been passed that clears up some of this minefield.
In September, the House of Congress passed the SAFE Banking Act in order to allow legal cannabis businesses to access financial services, including through banks and other financial institutions. Additionally, title companies such as Lakeside Title can now legally give their services to cannabis companies.
Previously, if a financial institution or a title company worked with a cannabis company, they could face serious legal penalties. Now, cannabis companies can get the financial services and real estate services they need to grow, unimpeded by fear of prosecution by the federal government.
The SAFE Banking Act is building on other cannabis successes at the federal level, including the 2018 Farm Bill which legalized industrial hemp growing. The benefits of loosening regulations are not just for businesses.
The SAFE Banking Act has changed things for the consumer, allowing them to pay for their state-legal weed with debit and credit cards.
Benefits of Title Services
Now that cannabis companies can get title services from title companies, what should they expect? Title companies run title searches for commercial clients who are looking to purchase a pre-existing property or start a new build project. Before you purchase or start your project you need to know that the current title or deed is legitimate. Title searches also help you avoid problems such as liens.
At Lakeside Title, we also offer title insurance. This reduces your liability if there is a claim made against the title, that is if an interested party believes it owns the property. This could be the result of unknown heirs or spouses of the current owner, fraud by the current owner, or failure to pay property taxes. If such a situation develops for you, you might need to pay thousands in legal defenses, or even lose the property. Title insurance covers your legal defense and loss, as per the limits of the policy.
There is already enough uncertainty in the cannabis industry. Get the security you need to move forward with your business with title search and insurance services.
Choose Lakeside Title for your Transaction
If you’re a cannabis company that has struggled without access to a title company, or a real estate agent working with clients in the industry, reach out to Lakeside Title today. We help companies with all of the title work they need to expand or move their business.