Conveyances to Foreign Entities

How does this law affect Fund Members?

1. As counsel for foreign principals now owning affected land.
   Fund Members may wish to notify foreign principal-clients owning affected property of the registration requirements and the law’s restrictions on future acquisitions.
2. As counsel for sellers of land in Florida.
   Sellers face criminal penalties for violating the law, so Fund Members may expect to be questioned by them and their real estate agents about how the law may impact a particular transaction. For that reason, Fund Members are urged to learn as much as possible about the law and stay current on all new developments.
3. As counsel for buyers of land in Florida.
   Buyers face criminal penalties and the forfeiture of the land purchased in violation of the law. Fund Members may expect to be questioned by them and their real estate agents about how the law may impact a particular transaction. For that reason, Fund Members are urged to learn as much as possible about the law and stay current on all new developments.
4. As title agent.
   The Fund does not presently intend to add any new requirement or exception to the title insurance commitment or policy.
5. As closing agent.
   The law requires that an affidavit be supplied by a buyer at the time of purchase but does not explicitly direct the closing agent to prepare, review, or collect the affidavit. Rather, the law provides that the failure to obtain or maintain the affidavit does not affect the title or its insurability or “[s]ubject the closing agent to civil or criminal liability, unless the closing agent has actual knowledge that the transaction will result in a violation of the law.” See secs. 692.202(5)(b), 692.203(6)(b) and 692.204(6)(b), F.S. The implementing rules provide create a rebuttable presumption that a closing agent who relies upon and maintains the affidavit had no actual knowledge the transaction violated the law.