Real property refers to the land, buildings and other things associated with the land where a business is located. In other words, applicants must provide documentation that shows they are authorized to occupy the location. Example documents include:
- Rental agreements
- Property tax statements
Whichever documents is used to show right to the real property, it must be in the name of the applicant entity. For example, if you apply as a sole proprietor the lease would need to be in your name as an individual. If you apply as part of a Limited Liability Company, the lease would be in the name of the business entity (e.g. Example Entity, LLC).
It is important to note that a fully executed (signed/legally binding) lease, rental agreement, sales document, etc. is not required until the very end of the process before an LCB license is issued. The LCB usually requests a draft copy at the beginning of the application process, but it need not be signed until the license is ready to be issued.
A cannabis licensee is not allowed to enter into an agreement which causes undue influence over another licensee or industry member. This rule prohibits lease or rental agreements between retail licensees and non-retail producer/processor licensees. When looking for a location, make sure the landlord is not a true party of interest in a non-retail producer and/or processor license.