Florida Senate Bill SB 264, which was signed by Governor Ron DeSantis, took effect on July 1, 2023. The new law forbids the acquisition of an interest in Florida real property by “Foreign Principal” buyers (i.e., individuals in most cases) and “Foreign Countries of Concern”, associated with the People’s Republic of China, Venezuela, Syria, Russia, Iran, North Korea, and Cuba.
There are two exceptions to these restrictions. A “Foreign Principal”, or a “Foreign County of Concern” from this list may acquire a real property interest:
1. For diplomatic purposes as approved by the Federal Government; or
2. Limited Residential Exception: If the Foreign Principal Buyer is a “natural person”, they may acquire one residential property of up to two acres, so long as:
• The parcel is not on or within 5 miles of any U.S. military installation;
• The buyer has a non-tourist U.S. visa, or other U.S. government documents, granting asylum in the United States, and the documentation permits them to be legally present in Florida;
• The purchase is in the natural person’s name.
For title insurance agents, there is no requirement to amend title insurance forms. Nor does the failure to comply with the requirements above void the acquisition of the property. Failure to comply will fall on the seller, and will be a post-closing event that will not lead to a valid title insurance claim.
However, it is necessary that starting July 1, 2023, every person or entity acquiring an interest in Florida property must sign an affidavit that they are not a “Foreign Principal” or represent a “Foreign Country of Concern”. It is the responsibility of the closing agent to provide these forms to buyers, at closing. Suggested forms are attached and should be integrated with your title closing software. Further, you have a duty to keep these signed forms in your closing records for audit purposes.
You should be aware that a challenge to the new law has been made in federal Court in the case of Shen v. Simpson, Northern District of Florida 4:23-cv-00208-AW-MAF. A hearing on a request for a preliminary injunction is scheduled for July 18, 2023, and FNTI will inform you if changes to implementation of this law are required.
Note that the Florida Real Estate Commission, which was directed to adopt affidavit forms, has not done so at this time. The Florida Land Title Association, in conjunction with Florida underwriters, has issued the forms below to use in the meantime.
Please direct your inquires to Ned Livornese, Florida Underwriter, at 443-286-5964 or [email protected], or David Hays, General Counsel, at [email protected]
| File | Action |
|---|---|
| UNFL-Bulletin-2023-006.pdf | Download |
