Ropes & Gray Attorneys Discuss State Regulation on Foreign Ownership in Law360

In 2023, Florida approved SB 264, a bill banning foreign investors from specific countries from purchasing land that is agricultural or near critical infrastructure. The law specifically singles out Chinese investors and puts a broader ban on real estate purchases for them. Asset management partner Eric Requenez and real estate investments & transactions partner David Kaye recently spoke with Law360 about this bill and other similar regulation across the U.S.

The legislation falls roughly into three categories, David said. There are bills that primarily focus on agricultural land and property in close proximity to critical infrastructure, such as military bases and airports. “I'd say the majority of them are probably drafted in a way that's not totally clear.”

The broadness of Florida's statute creates challenges for attorneys working with asset management clients, Eric said. “It doesn't contemplate some of the complicated funding structures that are out there, where you might have distribution arrangements with third parties, where the fund manager doesn't even know who the underlying beneficial owners are,” he said.