People from seven countries won’t be able to buy real estate in Florida, including houses and condos, under a rigid new law that just took effect.
If you are from China, Cuba, North Korea, Syria, Russia, Iran, or Venezuela, under the new legislation, you can’t, as a foreign national own agricultural land or real estate in Florida near critical infrastructure or military installations. Critical infrastructure includes airports, chemical manufacturing facilities, and power plants.
Florida Governor Ron DeSantis signed the law in May.
There are over a dozen military installations in the state, and many are within five miles of major city centers, including Orlando, Tampa and Key West, Pensacola, Panama City, and Jacksonville.
The law appears to target foreign nationals from China most heavily. Under the new law, citizens or Chinese foreign nationals are prevented from owning most real estate in Florida.
Florida’s not the only state pressing for this type of restriction on foreign real estate investments.
Texas had a similar proposal that worked through the state legislature earlier this year but didn’t make it to the governor’s desk to be signed.
A group of Chinese citizens and a Florida real estate brokerage filed a federal lawsuit against the state in May to block the law from taking effect on July 1. The American Civil Liberties Union represents the plaintiffs, and they argue that the law is discriminatory and unconstitutional.
Multi-Choice Realty LLC is one of the plaintiffs—it’s a real estate brokerage primarily working with Chinese and Chinese-American clients. According to the details of the lawsuit, the law will force the cancellation of purchases of new homes and cause them to lose significant business. The lawsuit alleges that the law stigmatizes Chinese buyers and creates a cloud of suspicion.
If someone owned property in Florida before July 1, they could keep their interests, but they must register with the Florida Department of Economic Opportunity.
The law does have exceptions.
For example, foreign nationals can still acquire Florida real estate if it’s related to the enforcement of debt collection or another security interest. The foreign national does have to sell or get rid of that property within three years.
If someone is found to violate the law, they could face civil and criminal consequences, including a daily fine and misdemeanor or felony charges.
The law also prevents the state from awarding economic development incentives or contracts from the state that involve real estate ownership to foreign nationals from the countries named above.
Opponents of the law say it violates the Fair Housing Act, which protects homebuyers from being discriminated against because of their national origin or race.
There are also concerns that the law is too broad to be enforced, and it will create undue burdens on real estate professionals. There’s also the issue of a potential slowdown of real estate investment in Florida. Between April 2021 and April 2022, Chinese investors bought more than $6 billion in real estate throughout the country. Florida was the top destination for foreign national buyers, making up around 24% of international transactions.
Governor DeSantis has responded to criticism about the law, saying that it helps to ensure that the threats from Communist China are being addressed. Florida Commissioner Wilton Simpson has said the new law would help protect access to a safe, affordable, abundant food supply.
There are ongoing legal efforts to try and stop the law, but as it stands currently, it is in effect in Florida.
