Michigan licensing & zoning
Can a Michigan cannabis license be transferred with the property?
Last updated
The answer
A cannabis license itself is not real property and does not automatically convey with a deed, but the CRA does approve ownership transfers and change-of-location requests, which is why most cannabis real estate deals are structured as combined license-plus-property sales with the transfer approval sequenced ahead of or alongside closing.
Structuring the sale
Because the license and the real estate are legally distinct assets, a purchase agreement typically makes closing contingent on CRA approval of the ownership or location transfer, with an outside date if the regulator's calendar slips. Buyers who close on the building alone, expecting the license to follow automatically, misunderstand the process and can end up owning an unlicensed building.
Sources
Where these figures come from
Go deeper
Related pages on this site
- Cannabis acquisitions & dispositions
- Receivership & distressed
- Sale-leaseback service
- Michigan distressed market
More michigan licensing & zoning answers
- How much does it cost to open a dispensary in Michigan?
- How much is a cannabis license in Michigan?
- Which Michigan cities allow marijuana dispensaries?
- What is a green zone and how do I find one in Michigan?
- What is the difference between opting in and opting out in Michigan?
- How far does a dispensary have to be from a school in Michigan?
Last updated
Next step
Apply this to your deal
Tell us the jurisdiction, licence type and building profile. We confirm the ordinance and licence position with the municipality and the CRA, then show you what survives it.
Last updated