A federal appeals court in the United States gave the green light to Florida’s SB 264 Law, which bans the purchase of property in strategic areas of the state for most citizens of China and sets similar, though more flexible, restrictions for residents of Cuba, Venezuela, Iran, North Korea, Russia, and Syria.
In a split decision (2-1), the Eleventh Circuit Court of Appeals ruled that the plaintiffs lacked sufficient standing to block the law and rejected other claims filed by civil rights organizations.
“Today we won big in the United States Court of Appeals for the Eleventh Circuit, defending our law that prevents land ownership in Florida by the Chinese Communist Party,” celebrated Attorney General James Uthmeier on social media.
Scope and Exceptions of the Legislation
Passed in 2023, SB 264 prevents most Chinese citizens from acquiring real estate within 10 miles of civilian or military infrastructure Florida deems critical. For nationals of Cuba, Venezuela, Iran, North Korea, Russia, and Syria, specific but less stringent restrictions apply.
However, the measure includes exceptions. According to the ruling, individuals with a visa other than a tourist visa or asylum seekers may purchase a single residential property of up to 86,111 square feet, provided it is not located within 5 miles of military installations.
Judicial Arguments
Judge Robert Luck, author of the majority opinion, argued that the four plaintiffs involved did not meet the requirements to be directly affected, as they were not “domiciled” in China or, as in the case of Yifan Shen (a work visa holder and Florida resident since 2019), their legal domicile was considered Floridian, not Chinese.
“The fact that Shen has not obtained permanent immigration status does not change the domicile analysis, because state law allows non-citizens to establish Florida as their domicile,” Luck stated.
Economic Impact on the Real Estate Sector
Florida is one of the most sought-after states for international homebuyers, accounting for nearly 20% of foreign transactions in the U.S. real estate market, according to 2024 data from Miami Realtors. The new legislation is expected to directly influence this activity, which supports a significant portion of the local economy.
Governor Ron DeSantis and Republican lawmakers justified the law’s passage as necessary to curb the influence of the Chinese government and Communist Party in the region. Critics, however, question the appropriateness of attributing threats to an entire national group and warn of the risk of discriminatory generalizations.
