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*Florida's New Land Ownership Restrictions: A Game-Changer for Foreign Investors**
As of July 1, 2023, Florida has introduced a new law that significantly restricts foreign ownership of certain types of real estate within the state. Senate Bill 264, also known as the "Foreign Entity Conveyance Act," prohibits direct or indirect ownership by foreign principals from specific countries, including China, Russia, and Iran.
**What Does This Mean for Foreign Investors?**
The law applies to three main scenarios: agricultural land, property near military installations or critical infrastructure, and real estate owned by Chinese concerns. A "foreign principal" is broadly defined as an entity or individual with ties to a country of concern, including those who are not US citizens or lawful permanent residents.
**Key Provisions**
* Foreign principals are barred from acquiring agricultural land, which includes property classified as agricultural by the local property appraiser.
* Property near military installations or critical infrastructure is also off-limits, with some limited exceptions for residential properties.
* Chinese concerns are prohibited from acquiring any real estate in Florida, except for a narrow exception for residential properties held by US visa holders.
**Compliance and Penalties**
To avoid civil penalties and potential forfeiture of their property, foreign investors must comply with the new law. This includes registering ownership with the relevant state agencies and providing an affidavit certifying compliance at closing.
**Recent Developments**
A lawsuit challenging the constitutionality of the law is currently ongoing in federal court. The Department of Justice has weighed in on the issue, arguing that the law is unconstitutional. However, a Florida federal judge has denied the plaintiffs' motion for preliminary injunction, and the case continues to unfold.
**What's Next?**
As the law takes effect, foreign investors should carefully review their ownership structures and compliance obligations. The Florida Land Title Association has provided guidance on the new requirements, including recommended forms for notices and affidavits.
