Foreign Investment In Real Estate Is Getting More Complicated

On May 5, the U.S. Department of the Treasury issued a notice of proposed rulemaking to add eight military installations to the list of sites around which the Committee on Foreign Investment in the U.S. has jurisdiction to review real estate transactions.[1]

This is the first expansion of CFIUS' real estate authority since it came into effect in 2020.

This incremental expansion of CFIUS' jurisdiction will increase the number of transactions subject to CFIUS review. However, it is unlikely to satisfy members of Congress and state legislators who want to prohibit investments in agricultural and other land by investors from countries of concern such as China.

There are also legislative proposals to prohibit Chinese investment in real estate in dozens of U.S. states, many of which would restrict even indirect holdings through non-Chinese entities. While some proposed restrictions would apply only to agricultural land, others apply to all real property.

Read: Foreign Investment In Real Estate Is Getting More Complicated, Law360 UK