– Florida Senate Bill 264 would limit select persons from foreign countries of concern, including China, Russia, Iran, North Korea, Cuba, Syria, and Venezuela, from owning or acquiring additional real property in Florida.
– The law includes exceptions for indirect interests, security interests, and grandfathered properties acquired before July 1, 2023.
– Violations of the law would result in criminal and civil penalties, but a lawsuit has been filed seeking to stop the law from being implemented. – Chapter 2023-33 prohibits select persons from the People’s Republic of China from owning or acquiring real property in Florida after July 1, 2023.
– Foreign principals from other countries are also prohibited from owning agricultural land or real property within 10 miles of certain facilities in Florida.
– The facilities include military installations and critical infrastructure such as chemical manufacturing facilities, power plants, and seaports. 1. In Florida, owning and acquiring real property is limited.
2. A person or entity is considered to have a controlling interest in real property if they have the power to direct or influence the management or policies of a company, or if they have a significant ownership stake.
3. There are exceptions to the law, such as having a small indirect interest in land through ownership of equities in a publicly traded company.
4. Foreign principals may acquire additional real property in Florida under certain circumstances, but must divest themselves of the property within three years.
5. People with certain visas or documentation confirming asylum in the U.S. can acquire up to 2 acres of non-agricultural land in Florida. 1. Foreign principals who owned or acquired real property in Florida before July 1, 2023, can continue to own it, but are prohibited from purchasing additional real property in Florida.
2. Failure to register with the Florida Department of Economic Opportunity (FDEO) can result in a civil penalty of $1,000 per day.
3. Violations of the act may result in civil or criminal penalties, including forfeiture of the real property.
4. A lawsuit has been filed challenging the law, claiming it violates the U.S. Constitution and Fair Housing Act.
5. The FDEO, FDACS, and Florida Real Estate Commission (FREC) are beginning the rulemaking process for implementing the act, allowing stakeholders to comment and influence the final rules. 1. The information in the alert is not intended to be the sole source of information for resolving legal problems.
2. It should not be used as a substitute for legal advice that is based on a specific factual analysis.
3. Laws in each jurisdiction are different and constantly changing.
4. Receipt of the information does not create an attorney-client relationship.
5. Readers are encouraged to consult the authors of the publication or other competent legal counsel for specific questions regarding a particular fact situation.
https://www.hklaw.com/en/insights/publications/2023/05/florida-law-limits-persons-from-foreign-countries-of-concern
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