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CFIUS Regulations Applicable to Real Estate Transactions

October 20, 2020

Earlier this year, the Department of Treasury’s final regulations became effective to implement the Foreign Investment Risk Review and Modernization Act of 2018 (FIRRMA). Accordingly, it is now incumbent upon foreign persons or entities acquiring or leasing property in the United States to consider whether they need to make a Declaration to the Committee of Foreign Investment in the United States (CFIUS) of the proposed transaction.

Although CFIUS obligations only apply to a narrow set of obligations for real estate transactions, we strongly recommend buyers, sellers, landlords and tenants review their transactions on a case-by-case basis to manage compliance risks.

This alert briefly summarizes the pertinent provisions of the Part 802 regulations and recommends a few practice tips based on our experience with covered real estate transactions.

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