A group of Chinese citizens is suing Florida officials over the state’s new law that restricts foreign investment in Florida real estate from specific countries, and enacts a near ban on purchases by Chinese nationals.
The lawsuit alleges the law is discriminatory and unconstitutional, and that it violates the Fair Housing Act.
Senate Bill 264, which Gov. Ron DeSantis signed into law earlier this month, prohibits nearly all Chinese citizens and businesses based in China from purchasing real estate in Florida. Foreign investors from the other “countries of concern,” including Venezuela, Cuba, Russia, Iran, Korea and Syria are banned from buying agricultural land in the state, as well as real estate within 10 miles of military and critical infrastructure facilities.
The latter casts a wide range, and includes seaports, airports, chemical manufacturing facilities, electrical power plants, water treatment plants and gas plants. Anyone who knowingly sells such real estate to people or entities from those countries would be subject to punishment by the state.
The law takes effect July 1.
Yifan Shen, Zhiming Xu, Xinxi Wang, Yongxin Liu and Clermont-based real estate brokerage Multi-Choice Realty filed a lawsuit against Florida’s Agricultural Commissioner Wilton Simpson, Economic Opportunity Florida Secretary Meredith Ivey and Florida Real Estate Commission Chair Patricia Fitzgerald in federal court on Monday. The American Civil Liberties Union is representing the plaintiffs.
Simpson and the Florida Department of Business and Professional Regulation did not immediately respond to requests for comment.A spokesperson for the state’s Department of Economic Opportunity said it does not comment on active litigation.
The plaintiffs are alleging that the law imposes “especially draconian restrictions” on people from China, and that it stigmatizes Chinese and Chinese American people who “will be forced to cancel purchases of new homes,” as well as register their properties with the state. Multi-Choice Realty, which primarily does business with Chinese and Chinese American clients, could lose significant business, the complaint alleges.
The law “casts a cloud of suspicion over anyone of Chinese descent who seeks to buy property in Florida,” according to the lawsuit.
The Florida Legislature passed SB 264 on May 4, and DeSantis signed it into law on May 8, alongside SB 258 and 846, which the governor claims are all meant to “counteract the malign influence of the Chinese Communist Party in the state of Florida.” One exception that was later added to SB 264 allows foreign nationals with non-tourist visas to purchase one residential property of up to 2 acres if the property is not on or within five miles of a military installation.
The ACLU said that DeSantis’ “misguided rationale unfairly equates Chinese people with the actions of their government, and there is no evidence of national security harm resulting from real estate ownership by Chinese people in Florida,” according to a press release.
Critics of SB 264 compared certain aspects of the legislation to Nazi Germany, including the required registration of such properties already owned by Chinese investors or people from what the state considers “countries of concern.”
Real estate brokers have also called the restrictions discriminatory, with the potential to discourage foreign investment also from countries not included in the legislation.
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As a real estate law expert with extensive knowledge in legislative actions and discriminatory practices within the industry, I'm well-versed in the nuances of laws pertaining to real estate transactions, including restrictions, fair housing regulations, and constitutional implications. My expertise is founded on legal precedents, comprehensive understanding of relevant statutes, and a thorough grasp of ongoing cases and litigations concerning discriminatory practices in real estate.
Regarding the article detailing a lawsuit against Florida officials over a law restricting foreign investment in real estate, let's break down the concepts involved:
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Senate Bill 264 and Restriction on Foreign Investment: This bill, signed by Governor Ron DeSantis, imposes restrictions on real estate purchases in Florida by specific countries such as China, Venezuela, Cuba, Russia, Iran, Korea, and Syria. It prohibits Chinese citizens and businesses based in China from purchasing real estate in Florida. It also limits foreign investors from other specified countries from buying agricultural land or real estate within 10 miles of military and critical infrastructure facilities.
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Legal Challenge and Allegations: Chinese citizens, along with a real estate brokerage, Multi-Choice Realty, have filed a lawsuit against Florida officials, including the Agricultural Commissioner, Economic Opportunity Florida Secretary, and Florida Real Estate Commission Chair, in federal court. The lawsuit claims that the law is discriminatory, unconstitutional, and violates the Fair Housing Act. Plaintiffs argue that the law unfairly targets Chinese nationals and stigmatizes them, leading to potential loss of business for the real estate brokerage.
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Discrimination Allegations and Constitutional Concerns: The lawsuit contends that the law singles out individuals of Chinese descent and places undue suspicion on them when purchasing property in Florida. It accuses the legislation of casting an unwarranted cloud of suspicion over anyone from China seeking to invest in real estate. The ACLU, representing the plaintiffs, criticizes Governor DeSantis' rationale for the law, stating it unfairly equates Chinese people with their government's actions without evidence of national security concerns related to Chinese real estate ownership in Florida.
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Exceptions and Amendments: There's mention of an exception to SB 264 that permits foreign nationals with non-tourist visas to buy one residential property up to 2 acres if it's not within a certain proximity to military installations.
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Criticism and Comparisons: Critics compare certain aspects of the law to historical discriminatory practices, specifically mentioning parallels with actions taken in Nazi Germany. Real estate brokers and critics argue that these restrictions might not only deter investment from the listed countries but also potentially discourage investment from other nations not included in the legislation.
This case encompasses several legal aspects, including constitutional rights, fair housing laws, international investment regulations, and potential discriminatory practices in real estate transactions.
