Bulletin: GA2024005

Dear Associates:

O.C.G.A. Section 2-1-7 (the "Act"), effective July 1, 2024, restricts acquisition of a possessory interest in agricultural land (“AG Land”) or land within a ten-mile radius of any military base, military installation, or military airport (“Military Land,” together with AG Land, collectively, “Land”) by a Nonresident alien (defined below). This bulletin outlines the effect of the Act and its current impact to title agents.

Effect of New Law:

1.  No person, entity, or agent of a foreign government designated as a foreign adversary by the United States Secretary of Commerce may acquire, directly or indirectly, any possessory interest in Land, except:

a.  Any acquisition of any interest in Land resulting from the collection of a debt requires the Nonresident alien to dispose of said interest within two (2) years after acquiring such interest. O.C.G.A. Section 2-1-7(c)(1)(B);

b.  Any acquisition of any interest in Land resulting from a devise or inheritance requires the Nonresident alien to dispose of said interest within one (1) year after acquiring such interest. O.C.G.A. Section 2-1-7(c)(1)(C);

c.  A Nonresident alien with an interest in contravention of this statute as of June 30, 2024, shall dispose of the interest no later than June 30, 2027. OCGA Section 2-1-7(c)(2); and

d.  Should a Nonresident alien acquire an interest in contravention of this statute, the Nonresident alien can avoid disposing of the interest “if, within the time required for disposal, such Nonresident alien terminates said Nonresident alien status.” OCGA Section 2-1-7(d)

2. This law does not apply to residential property intended to be used as a purchaser’s dwelling.

3.  A Nonresident alien who violates this statute:

a. Cannot sue to seek reimbursement of any acquisition price from the seller,

b. Counsel for a (i) county, (ii) municipality, or (iii) consolidated government, the Attorney General of Georgia, or any person that is not a Nonresident alien that was a party to the void transaction for the Land or is a subsequent holder of such interest may file an action to void the conveyance and have the interest revert to the previous owner. O.C.G.A. Section 2-1-7(f).

4. Criminal Sanctions – “an individual who intentionally violates the provisions of this Code section shall be guilty of a felony and shall be punished by a fine of not more than $15,000 and imprisonment for not less than one year nor more than two years.” O.C.G.A. Section2-1-7(g).

Important Definitions:

• “Agricultural land” means any land capable of use in the production of agricultural crops, timber, livestock or livestock products, poultry or poultry products, milk or dairy products, or fruit or other horticultural products.
• “Nonresident alien” means:

a.  A person who is not a United States citizen or legal resident, is an agent of a foreign government designated as a foreign adversary by the United States Secretary of Commerce pursuant to 15 C.F.R. Section 7.4, and

i.  Has been physically absent from the United States for more than six (6) months out of the most recent twelve (12) months preceding the acquisition of the possessory interest; or

ii.  Has been physically absent from Georgia for more than two (2) months out of the most recent twelve (12) months preceding acquisition of the possessory interest.

b.  A corporation, partnership, limited partnership, trustee, or other business entity that is:

i.  Domiciled in a country whose government is designated as a foreign adversary; or

ii.  Domiciled within the United States, but the ownership of at least 25% of which is composed of any corporation, partnership, limited partnership, trustee, or other business entity that is domiciled in a country whose government is designated as a foreign adversary, unless the entity is leasing land from its owner and using such land for agricultural research and development or experimental purposes.

c.  A foreign government designated as a foreign adversary.

Action by Title Agents:

For sale of Land as defined above for which the purchaser does not intend to use as a dwelling: 

• Agents should obtain proof that the purchaser is a United States citizen, legal resident or business entity domiciled in the United States (“Resident”) or if not a Resident, agents must obtain proof  that the purchaser is not a Nonresident alien (defined above) and buyer must execute the Purchaser’s Affidavit and Indemnification Agreement as to Foreign Adversary Status attached to this bulletin.
• If an agent is unable to obtain proof of the purchaser’s eligibility to purchase or lease Land without violating the Act and a loan policy is to be issued, the agent is advised to contact Stewart Title Guaranty Company underwriting counsel immediately before proceeding.
• Currently, there are no safeguards in place to protect a lender who has made a loan to a Nonresident alien secured by the Land (as defined above).

While our goal with this bulletin is to provide you with as much guidance as possible, please do not hesitate to reach out to your underwriters if you think you are handling a pending transaction that may violate the Act.

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

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