Effective July 1, 2023, Senate Bill 264 will bring new restrictions to the Florida real estate market. Citizens of China, Russia, Iran, Cuba, Venezuela, North Korea, and Syria are the named countries of concern that the bill targets. With the goal to protect the state’s interests and improve national security, citizens belonging to these countries will be restricted in their ability to invest in real estate in Florida. The intention of Senate Bill 264 is to limit contracts, incentives, and property ownership for people and organizations connected to countries of concern.
By implementing these restrictions Florida aims to proactively protect its military bases and critical infrastructure, such as highways and utilities. Investors and agents across the state will be significantly impacted by these new regulations, as investment opportunities become limited to a large portion of investors. Agents and those looking to invest in Florida must now thoroughly understand the new restrictions to ensure compliance and mitigate potential legal consequences.
Multiple lawsuits have been filed against the state, claiming the new bill violates constitutional rights that protect against racial discrimination. The U.S. Department of Justice and The American Civil Liberties Union have both formally backed the lawsuits.
Property Ownership Restrictions
Although the bill is restrictive to a few countries, Chinese citizens are going to face the most challenges while searching for opportunities in Florida. Citizens of China, Russia, Iran, Cuba, Venezuela, North Korea, and Syria will no longer be able to purchase any property within five miles of critical infrastructure or a military base. Agriculture land in the state is entirely off-limits for those citizens as well, with an exception made for those that hold a non-tourist visa. While most foreign investors are not restricted in their opportunities outside a ten-mile radius of military installations and critical infrastructure, Chinese citizens are barred from purchasing more than one property greater than two acres anywhere in the state.
Current Property Owners
Bill 264 calls for those belonging to the listed countries of concern that currently own property in Florida to register with the state. If the property is not registered by January 2024, owners will be fined $1,000 a day until the registration is complete. The bill also stipulates that the state may seize the property from owners if they fail to comply.
Impact on the Commercial Real Estate Industry
Agents across the state will be facing greater challenges as they are forced to adapt to these new laws. Commercial real estate agents could face second-degree misdemeanor charges with up to sixty days in jail and a $500 fine if they knowingly assist in the purchase of restricted property to a citizen belonging to the countries of concern. For those that represent a Chinese buyer, the penalties are far greater, carrying a third-degree felony charge, with a $5,000 fine and five years in prison. Representing in the sale of property to a Chinese citizen is considered a first-degree misdemeanor, carrying a punishment of a year in jail and a $1,000 fine. Working with an experienced and knowledgeable agent has become increasingly important as the rules and regulations continue to change in Florida. For help navigating commercial real estate in Florida, send us a message or call (813) 514-1070.
Florida Implements Foreign Investment Restrictions on Real Estate – Senate Bill 264
Effective July 1, 2023, Senate Bill 264 will bring new restrictions to the Florida real estate market. Citizens of China, Russia, Iran, Cuba, Venezuela, North Korea, and Syria are the named countries of concern that the bill targets. With the goal to protect the state’s interests and improve national security, citizens belonging to these countries will be restricted in their ability to invest in real estate in Florida. The intention of Senate Bill 264 is to limit contracts, incentives, and property ownership for people and organizations connected to countries of concern.
By implementing these restrictions Florida aims to proactively protect its military bases and critical infrastructure, such as highways and utilities. Investors and agents across the state will be significantly impacted by these new regulations, as investment opportunities become limited to a large portion of investors. Agents and those looking to invest in Florida must now thoroughly understand the new restrictions to ensure compliance and mitigate potential legal consequences.
Multiple lawsuits have been filed against the state, claiming the new bill violates constitutional rights that protect against racial discrimination. The U.S. Department of Justice and The American Civil Liberties Union have both formally backed the lawsuits.
Property Ownership Restrictions
Although the bill is restrictive to a few countries, Chinese citizens are going to face the most challenges while searching for opportunities in Florida. Citizens of China, Russia, Iran, Cuba, Venezuela, North Korea, and Syria will no longer be able to purchase any property within five miles of critical infrastructure or a military base. Agriculture land in the state is entirely off-limits for those citizens as well, with an exception made for those that hold a non-tourist visa. While most foreign investors are not restricted in their opportunities outside a ten-mile radius of military installations and critical infrastructure, Chinese citizens are barred from purchasing more than one property greater than two acres anywhere in the state.
Current Property Owners
Bill 264 calls for those belonging to the listed countries of concern that currently own property in Florida to register with the state. If the property is not registered by January 2024, owners will be fined $1,000 a day until the registration is complete. The bill also stipulates that the state may seize the property from owners if they fail to comply.
Impact on the Commercial Real Estate Industry
Agents across the state will be facing greater challenges as they are forced to adapt to these new laws. Commercial real estate agents could face second-degree misdemeanor charges with up to sixty days in jail and a $500 fine if they knowingly assist in the purchase of restricted property to a citizen belonging to the countries of concern. For those that represent a Chinese buyer, the penalties are far greater, carrying a third-degree felony charge, with a $5,000 fine and five years in prison. Representing in the sale of property to a Chinese citizen is considered a first-degree misdemeanor, carrying a punishment of a year in jail and a $1,000 fine. Working with an experienced and knowledgeable agent has become increasingly important as the rules and regulations continue to change in Florida. For help navigating commercial real estate in Florida, send us a message or call (813) 514-1070.