Florida Law Prohibiting Property Ownership 2023-06-29
Gulf Coast Real Estate Update
June 29th, 2023
Florida Law
Prohibiting Property
Ownership for
Some Foreign Nationals
Effective July 1st
Photo credit: The Real Deal
State Law Poised To Become the First in the Country Enacted To Block Such Purchasers
Some immigrants from seven countries will no longer be allowed to buy real estate, including houses and condominiums in certain cases, in Florida under a new law set to take effect at the end of this week.
The new law prohibits foreign nationals from China, Cuba, Iran, North Korea, Russia, Syria and Venezuela from owning agricultural land or any real estate in Florida near a military installation or critical infrastructure, such as airports, refineries, power plants and chemical manufacturing facilities. Florida Republican Gov. Ron DeSantis signed Senate Bill 264 into law on May 8.
In response to the new law The Florida Association of REALTORS has added additional language to all of its approved contracts:
ATTENTION: SELLER AND BUYER
CONVEYANCES TO FOREIGN BUYERS: Part III of Chapter 692, Sections 692.201 – 692.205, Florida Statutes, 2023 (the “Act”), in part, limits and regulates the sale, purchase and ownership of certain Florida properties by certain buyers who are associated with a “foreign country of concern”, namely: the People’s Republic of China, the Russian Federation, the Islamic Republic of Iran, the Democratic People’s Republic of Korea, the Republic of Cuba, the Venezuelan regime of Nicolás Maduro, or the Syrian Arab Republic. It is a crime to buy or knowingly sell property in violation of the Act.
At time of purchase, Buyer must provide a signed Affidavit which complies with the requirements of the Act. Seller and Buyer are advised to seek legal counsel regarding their respective obligations and liabilities under the Act.
Mortgage rates have hovered in the six to seven percent range for over six months and, despite affordability headwinds, homebuyers have adjusted and driven new home sales to its highest level in more than a year. New home sales have rebounded more robustly than the resale market due to a marginally greater supply of new construction. The improved demand has led to a firming of prices, which have now increased for several months in a row.
