California Real Estate: The Growing Issue of Illegal Cannabis Grows

Property owners and real estate agents in California are dealing with the consequences of residential properties used as illegal cannabis grows, including high utility bills and the potential loss of property value. The grows may also pose a risk to public safety, as evidenced by fires and other hazards caused by unregulated electrical wiring and chemical use.

Code enforcement officers have broad authority to address these “public nuisances” through methods such as red tagging or liens, but enforcing compliance can be challenging due to limited resources and the difficulty of discovering grows before owners attempt to hide the damage. Building inspectors may not uncover illegal activity until after property transactions have taken place.

California law allows local governments to sue property owners for damages related to illegal grows, but success can depend on a city’s ability to fund legal action. Victims of illegal grows face a complex and costly process to address the damage left behind by previous owners, which may include rewiring entire electrical systems or dealing with ongoing utility issues.

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