Conveyances to Foreign Entities

Under the law, who is required to give an affidavit?
Buyers of agricultural land and land on or within 10 miles of a military installation or critical infrastructure facility must provide an affidavit at the time of purchase.

Is “time of purchase” defined in the law?  
No. However, the implementing rules consider time of purchase to mean at time of closing. 

What must the affidavit attest to?
That the buyer is not a foreign principal and is in compliance with the law, or, where applicable, not a foreign principal prohibited from purchasing the subject property.

What might be examples of “not a foreign person prohibited from purchasing the subject real property”?

Examples might include:

• A Venezuelan national residing in Caracas purchasing non-affected commercial warehouse property (i.e., nonagricultural land not on or within 10 miles of a military installation or critical infrastructure facility
• A British national permanently residing in Hong Kong purchasing a single-family home that qualifies for the “single residence” exception. 

Is it reasonable to expect that after July 1, 2023, all buyers will be asked to provide this affidavit?
Yes, and for a number of reasons. First, the commonly used FR/BAR contract was amended to add a statement that “[a]t time of purchase, Buyer must provide a signed Affidavit which complies with the requirements of the [law].” Second, it may be best to collect the affidavit from all buyers to avoid charges over selective enforcement. Finally, prudent sellers and closing agents will want the affidavit to help safeguard against their possible liability. In fact, the implementing rules create a rebuttable presumption that a closing agent and seller who rely upon and maintain the affidavit had no actual knowledge the transaction violated the law.

Does the law provide a “form” affidavit?
The law charges the Florida Real Estate Commission (“FREC”) to publish rules pertaining to the affidavit and a form of same. FREC has issued forms of affidavit for use by individual and by entity buyers and can be found here.

Has The Fund created suggested any forms for Members to use in connection with the law?
Yes. The Fund has created a Notice that explains the law in broad terms, and which can be shared with buyers. The Fund has also created a Guidance for Use of Notice with Affidavit:  

• Guidance for Use of Notice and Affidavit
• Notice and Affidavit Forms