CFIUS emphasizes the risks associated with acquiring foreign property in the U.S.
The Committee on Investment, Foreign of Investors, advises that it should be careful about possible expansions of authority and evaluate carefully all possible purchases by foreign investors, especially those involving real estate related to national security facilities. The Committee has proposed to expand its authority to review real estate transactions by adding more than 200,000 square miles of land associated with national security facilities. This proposal would greatly enhance the Committee's ability to review real estate transactions.
The Committee's proposal follows proposals in Congress to possibly further expand the focus on such transactions. Foreign Property Regulatory Policy''real estate in the U.S. has become more stringent at both the federal and state level, not only for reasons of proximity to sensitive government facilities (which was initially the primary focus for the Committee), but also because of the prioritization of economic security.
KFIUS
The CFIUS is a committee of the federal government, chaired by the Secretary of the Treasury, that has broad authority to study foreign investment in the United States and to take action to reduce threats to national security. The CFIUS has traditionally had authority to examine transactions involving the acquisition of physical control of U.S.
It is important to note that there is no time limit on the jurisdiction of the CFIUS unless the transaction has been referred to and passed through the Committee. In addition, foreign investors may face additional restrictions or obligations with respect to real property ownership at the federal or state level. Therefore, it is particularly important for foreign investors to take into account possible restrictions and requirements regarding the real estate to be acquired.
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