A. Via Devise, Descent or Foreclosure
I understand that foreign principals are restricted or even prohibited from purchasing certain real property after July 1, 2023, but what if the foreign principal acquires affected property by devise, descent or through enforcement of a security interest, e.g., mortgage foreclosure after July 1, 2023?
See secs. 692.202(4) and 692.203(5), F.S. In any of those circumstances, the foreign principal must divest itself of such real property within 3 years of acquisition.
B. Via Purchase and Sale
Is there any property prohibited from purchase by all foreign principals?
Yes. See s. 692.202(1). Starting July 1, 2023, all foreign principals are prohibited from acquiring agricultural land in Florida.
Are all foreign principals treated equally regarding what lands they are prohibited or restricted from purchasing?
No. Sec. 692.204, F.S. specifically addresses just China-aligned foreign principals and restricts the purchase by them of any type of Florida real property (with the limited “one residence” and diplomatic exceptions). This broad restriction does not apply to foreign principals from all other foreign countries of concern.
Are all lands in Florida now “off-limits” to foreign principals?
No. As to all but China-aligned foreign principals, all Florida real property is available for purchase except for agricultural land and land within 10 miles of a military installation or critical infrastructure facility.
Is all land within a 10-mile radius of a military installation or critical infrastructure facility now “off-limits” to all foreign principals?
No. There are two exceptions to the law prohibiting foreign principals, even those aligned with China, to acquire such affected lands. They are (i) the “one residence” exception, and the (ii) the “diplomatic purposes” exception.
Are there exceptions to the new laws restricting or prohibiting the purchase of affected lands by foreign principals, including those associated with China?
Yes. They are (i) the “one residence” exception, and (ii) the “diplomatic purposes” exception.
Please define the “one residence” exception.
See s. 692.203(4), F.S. A foreign principal who is a natural person may purchase one residential property up to 2 acres in size if (a) the parcel is not within 5 miles of a military installation in the state, (b) the person has a current U.S. visa that’s not limited to authorizing tourist-based travel or official documentation confirming asylum has been granted in the U.S. or such visa or documentation authorizes the person to be legally present within Florida, and (c) the purchase is in the name of the visa or document holder.
Will the foreign principal acquiring a residence under this exception be required to register with the State?
Yes, with the Dept. of Economic Opportunity. Rules regarding such registration have yet to be promulgated.
Please define the “diplomatic purposes” exception.
See s. 692.205. The new law does not apply to real property used for diplomatic purposes as recognized by the Federal Government.
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