Bought vacant land in Michigan Hesperia , having a rough time selling it

[Zenish Mahaseth]

Back in 2021 I bought vacant land from seller that promised me that cannabis permits could be transferred to me and sold it to me for 136.5k  , however later on city council said cannabis permits can not be transferred. I put up almost 100k for a fence , 45k for landscaping and got a well put on 35k since city council refused cannabis permit , property is currently residential zoned. I am looking to sell this but having rough time. Real estate agent can’t help sell it (been on market for 4 months). Please give me advice as what to do to get it sold or get equity out . (I can’t get loans as non citizen) . I would love to sell it for as close as I can to break even (not looking likely)  or do a 100k secured collateral loan with the property . I put in total of 310k of my hard money back in 2021.

**** can I sue the seller for essentially “selling” me a permit that can’t be transferred through selling me property , causing Me to loose my total investment ??? 

[Patricia Steiner]

Let's start with the last question about suing the seller:  No.  As the buyer, you have the duty of due diligence and under Michigan law: "Each license is exclusive to the licensee, and a licensee or any other person must apply for and receive the board's approval before a license is transferred, sold, or purchased." (Source: https://www.legislature.mi.gov/(S(vpmdcwmtfl2ilehvtou3vlar))/mileg.aspx?page=GetObject&objectname=mcl-333-27406#:~:text=Each%20license%20is%20exclusive%20to,transferred%2C%20sold%2C%20or%20purchased)

And, I bet the seller didn't include any guarantee of transferability in the sales contract either.  Simply, put - it never was an option.

As for selling it, I don't know how you're marketing the property but it appear there are several vacant lots/acreage for sale there with most being unsold for almost a year and at prices less than what you're seeking.  My recommendation would be not to market it as another lot for sale but for a specific purpose and to a specific buyer. For example, would this be a better location for an area business to build a larger facility or for an expansion?  Reach out to businesses that are expanding or considering moving into the area (Chamber of Commerce would be a source).  Would an out-of-market builder be interested in it?  And, use a Commercial Realtor - not residential; that lane is already taken.

The lesson here is vet everything. What happened to you is that the seller sold you his problem.  Intentionally - and you have no recourse because the responsibility for due diligence is/was on you as the buyer.  The best way out is to sell what you have to a targeted buyer; and let the fear go.  Buyers can smell it...the reason for the sale is that your plans have changed, when asked.  Don't sell your problem - sell someone a real opportunity based on the land and its improvements.

Hang in there.