09/04/2025
FOREIGN ACQUISITION OF TEXAS PROPERTY (SB 17)
Law restricts property purchases and leases for people and entities from certain countries.
E"ective date: September 1, 2025
WHAT DOES SB 17 DO?
SB 17 restricts the acquisition of real property interests in Texas by certain individuals,
entities, and governments associated with countries designated by the U.S. director of
national intelligence as a national security threat.
The Texas governor may also expand the application of the law to additional countries or entities.
WHICH COUNTRIES ARE CURRENTLY ON THE LIST? (August 11, 2025)
China, Russia, Iran, and North Korea
WHAT TYPES OF PROPERTIES ARE AFFECTED?
The restrictions apply to the acquisition of a broad range of real property interests,
including residential, commercial, industrial, agricultural land and improvements,
minerals, mines and quarries, timber, groundwater, and water rights.
The law applies to purchases, acquisitions, and leases of one year or more.
WHAT ABOUT TRANSACTIONS THAT CLOSED BEFORE SEPTEMBER?
The law does not impact the purchase of real property if the closing occurs prior to SB 17’s
eHective date of September 1, 2025, nor does it aHect a lease entered into before the
eHective date.
WHO DOES SB 17 AFFECT?
SB 17 applies to those domiciled in a designated country, citizens of or acting on behalf of a designated country, or those aHiliated with a designated country’s ruling political party.
However, certain individuals lawfully present in the U.S. at the time of purchase may
acquire property for use as a homestead.
The bill also applies to entities headquartered in a designated country or that are aHiliated
with, owned, or controlled by the government of such a country or by other prohibited
persons or entities.
