Title insurance is a critical element of real estate transactions in Washington State. Without a preliminary title commitment, it is extremely difficult to determine what encumbrances exist in regard to a piece of property. Additionally, without title insurance, it is difficult if not virtually impossible for a seller to provide a deed containing the full statutory warranties of title to a purchaser as well as obtain financing from a commercial lender.
Until recently, buyers of cannabis related real estate were generally able to obtain title insurance policies that excluded coverage over governmental actions resulting from the property being used for the production, processing or sale of marijuana, such as civil and criminal forfeiture of the property pursuant to federal law. This is no longer the case.