It has been a busy year in the world of real estate legislation, and some changes have impacted the way we conduct closings and the due diligence a buyer or seller may need to do during or prior to the closing process. Some of the more recent changes are below –
Senate Bill 264: Interests of Foreign Countries
- Earlier this year, Senate Bill 264 passed and brought with it an update to our contract that required certain foreign principals to either register their real estate purchases or restricted their ability to purchase certain real estate altogether. We wrote about this bill earlier this year (link to prior blog). With the serious implications for violating this Florida law, compliance is important for all real estate professionals. The registration mechanism is now live and is accessible on the Florida Department of Commerce website.
- While the system is not perfect, this website allows foreign individuals subject to the restrictions to register the property that they own and also an individual to search for a property address to aid in determining if the property would fall into the category that requires registration. This tool will assist buyers in determining whether registration is necessary before making an offer or purchasing a property. Another helpful website for looking up property is the CFIUS Geographic Reference Tool provided by the U.S. Department of Treasury, which allows a buyer to view a map to determine if a specific property’s distance to critical infrastructure and other important landmarks.
FinCEN Renews and Expands Real Estate Geographic Targeting Orders
- In November, the Financial Crimes Enforcement Network (FinCEN) extended their geotargeting order to include several new counties in Florida – Hillsborough, Pasco, Pinellas, Manatee, Sarasota, Charlotte, Lee, and Collier Counties. The FinCEN regulations allow closing agents to collect data regarding the purchase of residential real estate by persons possibly engaged in illicit activities. This rule requires closing agents to obtain additional information when a buyer is purchasing residential real estate without the use of institutional financing for a purchase price over $300,000.00. The additional information is focused on identifying the beneficial owners of the entities purchasing the real property by gathering their personal information, including names, social security numbers, permanent addresses, and occupations.
- While this expansion does not impact anyone’s ability to purchase real estate, ensuring that you close with a knowledgeable closing agent who can ensure all the necessary information is collected and submitted in a timely manner is imperative for a smooth closing experience.
Another significant change this year was with regard to the condo legislation. You can read more about those changes and how they can impact your closing on our blog about the recent changes to Florida law and contract riders.
At Berlin Patten Ebling, we strive to provide relevant and current information to ensure smooth real estate transactions for everyone involved. Keeping up to date on the changes to legislation that could impact your buyer or seller’s closing requirements will enable you to provide better service to your customers. If you have questions about these changes or any other real estate matter, we urge you to speak with your trusted local Real Estate Attorney.
We wish everyone a safe and happy New Year!
