%20(3).png)
Who Is Responsible for ADA Compliance in a Dispensary Lease: Landlord or Tenant?
If your dispensary space violates ADA, who is legally responsible the landlord or tenant? ADA Title III makes both potentially liable. Learn how leases, triple net agreements, buildouts, and control of the premises affect ADA responsibility in retail cannabis.
What this page covers
- How ADA Title III assigns responsibility in leased retail space
- Why both landlord and dispensary can be liable
- How triple net leases affect financial responsibility
- Buildout versus existing condition analysis
- Common cannabis lease mistakes
- How to reduce exposure before signing
ADA applies to both landlords and tenants
Under ADA Title III, liability is not limited to the property owner.
The law applies to:
- Owners
- Lessors
- Lessees
- Operators of a place of public accommodation
That means:
Even if the landlord owns the building, the dispensary can still be sued.
Even if the lease says the landlord is responsible, a customer can still name the tenant in a lawsuit.
Private contracts do not eliminate federal liability.
What determines responsibility?
ADA responsibility often depends on:
- Who controls the area at issue
- Who performs alterations
- What the lease says
- Whether the issue involves construction or policy
Control matters more than title ownership.
Common retail cannabis scenarios
Scenario 1: Entrance not accessible
If the entrance lacks accessible access and the dispensary controls that entrance, both landlord and tenant may face liability.
If the lease required the tenant to accept the premises “as is,” that does not eliminate ADA exposure.
Scenario 2: Interior buildout
If the dispensary performed alterations, ADA requires those alterations to comply with accessibility standards.
Failure to build compliant counters, restrooms, or pathways may fall on the tenant.
Scenario 3: Common areas
Parking lots, sidewalks, and shared hallways are often controlled by the landlord.
However, if customers use those areas to access the dispensary, both parties may be named in litigation.
Triple net leases and ADA
In a triple net lease, the tenant typically pays:
- Property taxes
- Insurance
- Maintenance
This shifts financial obligations, not federal liability.
A triple net structure often means the tenant is financially responsible for repairs or compliance work.
But even if the landlord retains structural responsibility, both may still be sued.
Triple net increases operational risk for dispensaries that fail to evaluate accessibility before signing.
Existing building versus alterations
ADA distinguishes between:
- Existing facilities
- Alterations
- New construction
New construction and alterations must meet stricter standards.
Existing facilities must remove architectural barriers where it is readily achievable.
Readily achievable means easily accomplishable without much difficulty or expense.
This analysis depends on resources and feasibility.
Cannabis buildouts frequently trigger alteration obligations.
Cannabis-specific risk factors
Dispensaries often:
- Install security vestibules
- Modify counters for controlled access
- Restrict entry paths
- Alter restrooms during buildout
Any alteration triggers accessibility compliance requirements.
Security concerns do not eliminate ADA obligations.
Age verification processes must still allow accessible entry.
Why lease language matters
Before signing, review:
- Responsibility for ADA compliance
- Indemnification clauses
- Repair obligations
- Alteration rights
- Control of common areas
You want clarity on:
- Who pays for compliance upgrades
- Who handles defense costs
- Whether the landlord represents the property as ADA compliant
Without clear allocation, disputes arise after complaints are filed.
Can a landlord shift all ADA responsibility to the tenant?
Contractually, yes for financial responsibility.
Legally, no for liability exposure.
ADA allows plaintiffs to sue:
- Landlord
- Tenant
- Both
The lease only determines who reimburses whom.
It does not shield either party from being named.
What happens if a complaint is filed?
Common process:
- Demand letter sent to both landlord and tenant
- Request for remediation
- Potential federal lawsuit
- Settlement negotiations
Disputes between landlord and tenant often occur after settlement discussions begin.
Poor lease drafting increases legal costs.
How to reduce risk before signing
- Conduct ADA accessibility review before lease execution
- Identify entrance, counter, restroom, and route compliance
- Clarify responsibility for common areas
- Negotiate indemnification terms
- Ensure buildout plans incorporate ADA standards
- Document representations regarding compliance
ADA review should happen before cannabis licensing approval.
Waiting until after opening increases exposure.
Why this matters for dispensaries
Cannabis retailers face:
- High visibility
- Frequent public access
- Strict buildout requirements
ADA claims are common in retail.
Lease structure does not eliminate exposure.
Understanding responsibility reduces both regulatory and litigation risk.
Go here next
- Service Animals in Dispensaries: What Staff Can Ask (The 2-Question Rule)
- ADA “Effective Communication” in Retail: What Staff Must Do
- Reasonable Modifications: When You Must Change Store Policies
- Who is Responsible for ADA Compliance: Landlord or Dispensary?
