Bulletin: NY000667 - UNDERWRITING - Certain Cannabis/Marijuana Retail Only Tenant Transactions

*This bulletin is a reissue of STG National Bulletin SLS2022003*

Stewart Title Insurance Company will issue Owner’s and Loan Policies on multi-tenant retail real property that includes incidental use by a recreational or medical cannabis or marijuana retail tenant(s), provided all of the following conditions are satisfied:

• No more than twenty percent (20%) of tenants renting space at the property are involved in recreational or medical cannabis or marijuana retail sales business;
• No other cannabis or marijuana use on the property (any use other than retail sales - such as growing, processing, storage, distribution, or production, etc. - is expressly excluded from this bulletin);
• Cannabis or marijuana retail sale (whether recreational or medical, as applicable) is legal in the state where the property is located;
• The cannabis tenant(s) is/are recreational or medical retail sales only;
• The cannabis tenant(s) is/are unrelated to the property owner and/or landlord;
• The transaction does not involve construction, construction loans or any other construction related financing; and
• ALTA 2021 policies are required in states where available for use.

If all of the conditions set forth above are satisfied, the transaction shall be considered “non-cannabis” and no cannabis underwriting is necessary. Standard underwriting must be followed, including Overlimits Request approval, if otherwise required.

The issuing office will determine if all of the conditions above have been satisfied and must keep evidence of the same in their files.

This Bulletin does not relate to any other property involving marijuana or cannabis, or authorize insurance of title to property involving marijuana or cannabis. For such other properties, please contact a Stewart Title Insurance Company underwriter for further guidance.

If you have any questions regarding this bulletin, please contact Stewart Title Insurance Company Legal Services at 212-922-0050.