realestate

Texas enacts law restricting foreign adversaries' real estate purchases

Texas bans land acquisitions by adversarial nations like Iran, North Korea and China.

T
exas has become the latest state to ban land and property purchases by individuals or entities from adversarial nations. Republican Governor Greg Abbott signed Senate Bill 17 into law, prohibiting countries identified as security threats in the intelligence community's 2025 Annual Threat Assessment from acquiring "real property" in the state. The bill targets China, Russia, Iran, and North Korea, defining "real property" as agricultural land, commercial or industrial properties, residential properties, and land used for mining or water use.

    Critics argue that such efforts are overly broad and potentially discriminatory, while proponents point to concerns over foreign asset acquisitions near major US military bases. Texas's bill exempts US citizens, lawful permanent residents, and individuals legally residing in the country who wish to purchase a primary residence. The law authorizes the state attorney general to investigate potential violations, which would be considered a felony.

    The move follows a high-profile incident where two Chinese nationals were arrested for attempting to smuggle a biological pathogen into the US. Experts warn that China's increasing footprint in the US drone market and other critical infrastructure poses significant security risks.

    Texas's bill is part of a broader trend, with 25 states having passed bills restricting foreign property ownership as of June 23, 2025. The Committee of 100 tracks these state and federal bills, noting an increase from 22 states in March. A new bill introduced in Congress aims to increase oversight of foreign farmland purchases by adding the US Agriculture Secretary to CFIUS and requiring the USDA to report any purchase of domestic agricultural land by foreign adversaries posing national security risks.

Texas Governor signs law restricting foreign adversaries' real estate purchases in US.