Title: Florida Senate Bill 264: How It Impacts Your Real Estate Business

TITLE: FLORIDA SENATE BILL 264: HOW IT IMPACTS YOUR REAL ESTATE BUSINESS

​As a real estate agent in Florida, staying informed about the latest legislative changes is vital for your business success. In May 2023, the Florida Legislature enacted Chapter 2023-33, commonly known as Senate Bill 264, which could have a significant impact on your real estate transactions involving foreign entities. In this blog post, we'll break down the key provisions of Chapter 2023-33 and explain how it may affect your day-to-day operations and interactions with clients.

Understanding Chapter 2023-33
Chapter 2023-33 is designed to address the interests of specific foreign countries, including the People's Republic of China (PRC), Russian Federation, Islamic Republic of Iran, Democratic People's Republic of Korea, Republic of Cuba, Syrian Arab Republic, and the Venezuelan regime of Nicolás Maduro. The legislation aims to regulate real estate dealings involving select persons from these countries, referred to as "foreign principals," and ensure transparency in the process.

Key Provisions and Their Impact

1. Limitations on Real Property Ownership: Under Chapter 2023-33, select persons from foreign countries of concern are restricted from directly or indirectly owning, having a controlling interest in, or acquiring additional real property in Florida after July 1, 2023. This provision applies to various types of real estate, including residential, commercial, and agricultural properties.
2. Exemptions and Grandfather Clause: While the legislation imposes limitations, there are exceptions. For instance, a person may possess a "de minimis indirect interest" in land, which allows ownership of registered equities in a publicly traded company owning the land, provided the ownership interest is less than 5 percent. The act also includes a grandfather clause for property acquired before July 1, 2023, allowing continued ownership but barring the purchase of additional real property in Florida.
3. Registry and Registration Requirements: Foreign principals who qualify for exemptions or the grandfather clause must register with the Florida Department of Economic Opportunity (FDEO). Timely registration and updates are crucial to avoid civil penalties.
4. Criminal and Civil Penalties: Chapter 2023-33 imposes both criminal and civil penalties for violations. Foreign principals who acquire additional real property in Florida after the effective date may face misdemeanor charges. However, select persons from the PRC in violation of the legislation may be subject to felony charges.

What It Means for Real Estate Agents
As a real estate agent, you may encounter clients or investors from the mentioned foreign countries. Chapter 2023-33 requires you to exercise due diligence in ensuring compliance with the legislation during real estate transactions. You will need to be aware of the registry and registration requirements for foreign principals, and failure to comply may result in penalties for both you and your clients.
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Moreover, the legislation may influence the types of properties your clients can acquire and impact their long-term real estate investment strategies. It is essential to communicate these changes to your clients and guide them through the implications of the law to make informed decisions.

Conclusion
Chapter 2023-33 marks a significant development in the Florida real estate landscape, impacting transactions involving foreign countries of concern. As a real estate agent, staying well-informed about the provisions and requirements of the legislation is crucial to ensure successful and compliant dealings with foreign principals. Be proactive in explaining the implications to your clients and consult legal counsel when needed to navigate this complex regulatory environment. At Sun Life Title, we are here to support you and your clients throughout the process, ensuring your real estate transactions are secure, transparent, and compliant with the new regulations.