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ARTICLE · 06 MARCH 2024

Florida's Foreign Entities Act Declared Unconstitutional In Recent Ruling

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In a recent legal development, the 11th US Circuit issued a consequential verdict in Shen v. Simpson, a federal lawsuit challenging Florida's Conveyances to Foreign Entities Act (SB 264)...

United StatesReal Estate and Construction
Charles D. Brecker
Charles D. Brecker
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In a recent legal development, the 11th US Circuit issued a consequential verdict in Shen v. Simpson, a federal lawsuit challenging Florida's Conveyances to Foreign Entities Act (SB 264), which restricts individuals from China and other "foreign countries of concern" from owning real property in the state. This ruling has far-reaching implications for the constitutional aspects surrounding real estate transactions within Florida.

The genesis of this legal process traces back to May 2023, when a group of Chinese individuals filed a lawsuit challenging the constitutionality of SB 264. Enacted on July 1, 2023, under Chapter 692, FS, SB 264 faced scrutiny based on allegations of violating the 14th Amendment (equal protection/due process), the Fair Housing Act (42 USC §3601 et seq.), and the Supremacy Clause of the US Constitution.

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