Conveyances to Foreign Entities

What is the effective date of the law? What are the applicable Florida statutes?
The law (SB 264) went into effect on July 1, 2023. Fund Members should familiarize themselves with secs. 692.201-205, F.S.

Are there implementing rules now in effect?
Yes. The Florida Department of Commerce (“FDOC”) [formerly known as the Dept. of Economic Opportunity] is statutorily charged with adopting rules implementing secs. 692.203 and 692.204, F.S. FDOC issued Rules 73C-60.001-.007, F.A.C., effective January 4, 2024. 

The Florida Department of Agriculture and Consumer Services (“FDACS”) is statutorily charged with adopting rules implementing sec. 692.202, F.S. FDACS has given notice of proposed Rules 5J-27.001-.006, F.A.C., but the rules are not yet in effect.

Please summarize the law in one sentence.
The law restricts the acquisition of certain Florida real property by “foreign principals” – i.e., foreign persons and entities domiciled in “foreign countries of concern” that already own, or after July 1, 2023, acquire or wish to purchase affected Florida real property.

Are all foreign persons and entities affected by the law?
No. Just persons and entities domiciled in certain “foreign countries of concern.” 

Please define “foreign countries of concern.”
See s. 692.201(3), F.S. The list includes the People’s Republic of China, the Russian Federation, Iran, North Korea, Syria, Cuba, and the Venezuelan regime of Nicolas Maduro, including any agency or entity of significant control by such country of concern. 

Please define “foreign principals.”
See s. 692.201(4), F.S. for the full definition. For most Fund Members, foreign principals will primarily involve non-U.S. citizens living in a foreign country of concern – e.g., Venezuela, China (incl. Hong Kong and Macao), and Russia – already owning or seeking to buy certain affected real property in Florida.