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Two Florida Realtors® lawyers – Vice President of Law and Policy and General Counsel Juana Watkins, and Deputy General Counsel Marcia Tabak – hosted a webinar on July 29 to give members an overview of upcoming changes when a bill passed by the Florida Legislature and signed by Gov. Ron DeSantis (SB 264) went into effect on July 1.
Florida Realtor’s lawyers spoke to 6K+ members during a July 29 webinar, saying a new law impacting some property sales to certain foreign buyers goes into effect July 1. Some details are not yet clear, but a new disclosure appeared in contracts effective Saturday, July 1, 2023, and buyers must sign a new affidavit.
Contract changes: That paragraph says:
ATTENTION: SELLER AND BUYER
CONVEYANCES TO FOREIGN BUYERS: Part III of Chapter 692, Sections 692.201 – 692.205, Florida Statutes, 2023 (the “Act”), in part, limits and regulates the sale, purchase, and ownership of certain Florida properties by certain buyers who are associated with a “foreign country of concern”, namely: the People’s Republic of China, the Russian Federation, the Islamic Republic of Iran, the Democratic People’s Republic of Korea, the Republic of Cuba, the Venezuelan regime of Nicolás Maduro, or the Syrian Arab Republic. It is a crime to buy or knowingly sell property in violation of the Act.
At the time of purchase, the Buyer must provide a signed Affidavit that complies with the requirements of the Act. Seller and Buyer are advised to seek legal counsel regarding their respective obligations and liabilities under the Act.
Fair housing concerns: Watkins offered another note of caution: There could be Fair Housing Act implications. She offered a warning to agents who might consider taking steps beyond simply explaining the new wording in the contracts: “Ensure that it’s neither your intent nor motive to discriminate against buyers based upon any protected classes,” she says. “Do not ask buyers questions about their national origin.”
The issue is extremely complicated: Buyers may ask Realtors questions. However, the law is untested in the courts, and only a buyer’s lawyer can explain how a specific clause will impact that specific buyer.
The penalties within the law can be harsh, and Watkins strongly urged members not to speculate on the statute’s impact. “Be the source of the source,” she repeated.
Finally, it’s difficult to determine whether a property is included in the new law. According to Tabak, for example, there is not, as of yet, an official list of military installations as referenced by the statute – nor is there a list, map or other way to determine if a property is located near critical infrastructure.
Some issues are still pending: FREC, the Florida Department of Agriculture and Consumer Services and the Florida Department of Economic Opportunity must all implement specific portions of the bill. As a result, many details are still pending.
Don’t offer advice: The penalties for non-compliance can be severe for buyers, sellers, and possibly real estate agents. Watkins often repeated the phrase, “Don’t be the source of the information – be the source of the source.” While customers must be told that the law exists and that they must sign an affidavit saying they’re in compliance with the statute, agents should not volunteer information beyond the details now outlined in the contracts and new addendum.
Buyers should consult legal counsel with questions and concerns.
© 2023 Reprinted with permission Florida Realtors®. All rights reserved.
