SB 264: What Foreign Investors Need to Know About Florida’s New Real Estate Law

Governor Ron DeSantis recently signed Florida’s Senate Bill 264, or “Interests of Foreign Countries,” into law. This law, effective on July 1, 2023, aims to regulate the sale, purchase, and ownership of specific properties in Florida by particular foreign entities, persons, and principals. In this post, we will explore the particulars of this legislation and what it means for foreign interests in Florida.

What is Senate Bill 264?

Senate Bill 264 was introduced during the 2023 legislative session in Florida. The bill was passed through several stages of review and amendment before being signed into law. The law is designed to regulate the interests of foreign countries in the state of Florida, particularly in relation to the real estate sector.

Key Provisions of SB 264

The law contains several key provisions designed to regulate foreign principals’ activities in Florida. Here are some of the main points:

1. Government Contracts: The law prohibits governmental entities from knowingly entering into certain contracts with foreign principals. This means that foreign entities may face restrictions when trying to secure government contracts in Florida.
2. Economic Incentives: Government entities are required to obtain an affidavit from applicants before providing any economic incentives. This is designed to ensure that foreign entities are transparent about their interests when seeking economic incentives from the government.
3. Real Estate Ownership: The law prohibits foreign principals from purchasing agricultural land or having more than a de minimus indirect interest in such land. It also restricts the purchase of certain real properties in the state. However, foreign principals are allowed to continue to own or hold such land or property under certain circumstances.

What Does SB 264 Mean for Foreign Interests?

The implications of Senate Bill 264 for foreign interests in Florida are significant. The law introduces new regulations that could affect the ability of foreign entities to invest in Florida’s real estate sector, secure government contracts, and receive economic incentives from the government.

If you are a foreign individual or entity with interests in Florida, it’s crucial to understand the implications of this law. You may need to adjust your investment strategies or business plans in light of these new regulations. It’s recommended to consult with a legal advisor to understand the potential impacts on your interests in Florida.

Who is responsible for implementing SB 264?

Three Florida agencies are charged with implementing specific portions of the bill. These agencies are:

1. The Florida Real Estate Commission (FREC)
2. Department of Agriculture and Consumer Services (DACS)
3. Department of Economic Opportunity (DEO)

As these agencies have not yet finalized some of their rules, a number of details are still pending. Therefore, it’s important for real estate professionals and foreign buyers and sellers to stay informed about the latest developments related to this law.

Conclusion

Senate Bill 264 represents a significant shift in Florida’s approach to foreign interests. As the law is set to take effect on July 1, 2023, foreign entities with interests in Florida should take the time to understand the implications of this law and prepare accordingly.

Stay tuned for more updates on this topic, and feel free to share your thoughts and questions in the comment section below.

This article is for informational purposes and is not legal advice. Please consult a legal professional for specific questions related to Senate Bill 264.

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© 2023 Ron Murray. All rights reserved.