What It Means for Foreign Ownership of Real Estate

On May 31, 2025, the 89th Texas Legislature passed Senate Bill 17 (SB 17) — a major change that could reshape how and by whom real estate is bought in Texas. Governor Greg Abbott signed it into law on June 20, and it will officially go into effect on September 1, 2025.

Here’s what you need to know — especially if you're buying, selling, or working in real estate in Texas.

🧾 What Is SB 17 (2025)?

Texas Senate Bill 17 (2025) restricts ownership of Texas real estate by foreign individuals, businesses, and governments associated with certain countries deemed a risk to national security.

The bill is a response to concerns over foreign entities buying land near critical infrastructure, military bases, or in large quantities across the state.

🌍 Who Does This Law Affect?

The law specifically targets individuals, companies, or government entities tied to countries on a restricted list (based on state and federal determinations). As of August 2025, this list includes:

  • China
  • Iran
  • North Korea
  • Russia

These nations are considered by state lawmakers to pose national security concerns if their citizens or affiliates own land in sensitive areas or in bulk.

However, legal permanent residents (green card holders), U.S. citizens of any origin, and certain visa holders are not affected by this restriction.

🚫 What Types of Properties Are Restricted?

SB 17 focuses on:

  • Agricultural land
  • Property near military bases
  • Property near critical infrastructure (power grids, water supply, etc.)

However, there’s growing concern (and confusion) about how broadly the restrictions might eventually be interpreted or enforced. Right now, residential and commercial real estate in most urban and suburban areas is NOT directly restricted, unless otherwise specified in future rulings.

👮‍♂️ Who Will Enforce This Law?

The enforcement responsibility will fall to the Texas Attorney General’s Office, in coordination with:

  • The Texas Department of Public Safety (DPS)
  • The Texas Real Estate Commission (TREC) (in advisory or compliance contexts)
  • Possibly title companies, who may be tasked with verifying certain ownership conditions

Expect guidance to evolve as implementation begins on September 1, 2025.

🏡 What Does This Mean for Buyers and Sellers?

🔍 Buyers

If you're a foreign national, you’ll need to confirm whether your country of origin is on the restricted list and what type of property you're trying to buy. If you’re from a restricted country, you may not be eligible to purchase some types of land.

🧾 Sellers

If you're selling agricultural or rural land — especially near military bases or utilities — you may be required to confirm the buyer's eligibility before closing.

💼 Agents and Brokers

Real estate professionals are being advised to proceed cautiously and avoid advising clients on legal interpretations of SB 17. Instead, we’re encouraged to:

  • Refer legal questions to attorneys
  • Stay updated on guidance from TREC and TAR
  • Keep communication neutral and factual

⚠️ Why This Matters

Real estate is changing fast in Texas, and laws like SB 17 are making it even more important to work with a licensed, informed agent who can help you navigate contracts, disclosures, and legal landmines — while staying fully compliant.

💬 Have Questions?

This law may affect landowners, investors, and buyers from abroad — but it does not impact every buyer. If you’re unsure how this law could affect your real estate plans in Texas, I’m here to help guide you through it or connect you with the right legal resources.

⚖️ Disclaimer:

I am not an attorney, and this blog is not intended as legal advice. The information provided reflects my current understanding of Texas Senate Bill 17 as it relates to real estate. For specific legal guidance or questions about how this law may affect you personally, please consult a licensed attorney.

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