Michigan House Bill HB4329

Michigan 2023-2024 Regular Session

• Introduced: 3/23/23
• Refer: 3/23/23

Caption

Property: land sales; sale or transfer of real property to foreign entities; prohibit. Amends title & secs. 35 & 36 of 1846 RS 66 (MCL 554.135 & 554.136) & adds sec. 36a.

Impact

The bill significantly modifies the legal framework governing real estate transactions by foreign entities in Michigan. It amends sections related to property rights and introduces new rules that necessitate the divestment of property by foreign individuals or businesses should their status change to a foreign person after acquisition. The consequences for violating these rules include potential escheatment of property to the state, with the Attorney General tasked to enforce compliance. This is expected to influence both existing and new real estate transactions, potentially affecting how foreign businesses operate in the state.

Summary

House Bill 4329 amends existing Michigan law concerning the purchase and acquisition of real estate by foreign entities. Specifically, the bill prohibits foreign persons from acquiring land in Michigan as of the effective date, with certain exceptions. Under the new legislation, foreign persons who already own property in the state can continue to hold it but are barred from purchasing additional land. This legislation is aimed at preventing potential national security threats and ensuring that local property remains under domestic control.

Contention

Key points of contention arise from concerns about the implications for foreign investments. Supporters of the bill argue that restricting foreign ownership is necessary to protect national security and local economies. Conversely, opponents express fears that such restrictions could deter investment in Michigan, potentially stifling economic growth and development. They stress the importance of international business relationships and caution against overly restrictive measures that may drive away potential investors.