To do otherwise can be a major mistake and considered fraudulent.

To not have a strong OA or none at all is like bringing a fly swatter into combat!

So if if they are taking deductions based on a marijuana business they are filing fraudulent federal returns. 

I would recommend that the OP speak to a licensed attorney in their state of operation, as I am seeing legal issues beyond the mere act of conveyance here; Primarily I see issues of fraudulent conveyance, and the possibility for a judgment creditor to potentially file a suit to void the transfer.

So no funny business or fraudulent documentation with falsified quotes.

If he is living there, they are fraudulently accepting taxpayer money.

The banks do this to reduce fraudulent and/or deceptive activities.     

Just because you lived there, and made monthly payments, you Never owned it, no title transfer, no recorded land contract, no nothing (unless you tried to go back and fraudulently create some sort of back dated land contract documents, that were still never recorded).  

Now I suppose someone can do this improperly, which I suppose would amount to fraudulent activity.  

I am not an attorney but I would think this may be construed as a fraudulent conveyance and any moderately competent attorney would pierce this type of transfer.