New Bill May Impact Some Foreign Buyers
While many realtors are well aware of specific regulations concerning foreign buyers, a new law has been enacted as of July 1st. Governor DeSantis signed Senate Bill 264: Interests of Foreign Countries (SB264). The law limits the sale of certain Florida properties to persons from “Foreign Countries of Concern” (FCC). The countries include China, Russia, Iran North Korea, Cuba, Venezuela, and Syria. The buyer must provide a signed Affidavit that he/she is not a national of any of the above-listed countries.
The properties prohibited for purchase are Agricultural land, proximity to military bases, and proximity to critical infrastructure. The word “proximity” here refers to within ten miles.
But China gets special treatment. The law states: “The People’s Republic of China (PRC) SB 264 prohibits certain PRC persons from owning (for properties purchased after July 1, 2023) or acquiring ANY real property in the state. The law states: This provision applies to “any person who is domiciled in the Peoples Republic of Chine (PRC) and who is not a US citizen or lawful permanent resident.” It applies equally to any entity or agency domiciled in the PRC or any official or member of the Chinese Communist Party.”
So, how does this affect real estate transactions by persons from FCCs?
1, All buyers of Florida real estate will now be required to sign an affidavit at closing that they are not a national of an FCC country.
2. Buyers and/or sellers could be criminally charged, facing various crimes and penalties (These crimes range from felonies to misdemeanors to forfeiture of property to the state.)
3. Realtors are urged to begin using the revised FAR-BAR contract immediately. (The Florida FAR-BAR contract is designed to make real estate sales easier. It allows those involved in real estate sales to input information and meet all the necessary requirements simply and quickly. It provides a reliable, consistent, and legally binding agreement for all involved.) Realtors should also consult with their real estate attorneys to clarify the finer points of this new law.
4. The broker should be very mindful about the Fair Housing Act which prohibits questions about the national origin of clients. The 1968 Act expanded on previous acts and prohibited discrimination concerning the sale, rental, and financing of housing based on race, religion, national origin, sex, handicap, and family status. In short, the broker is strongly advised not to ask buyers questions about their national origin. Ensure that it’s neither your intent nor motive to discriminate against buyers based upon any protected classes. This, of course creates a quandary for brokers: How should the broker navigate and reconcile the two laws. This is merely one aspect of the new law where the real estate lawyer should be consulted.