Texas Attorney General Issues New Real Estate Rules
The state released revised proposed rules to restrict property acquisitions by foreign entities.
Updated on Oct. 22, 2026 in Commercial
Live Poll
Should foreign entities be restricted from purchasing residential or commercial real estate in your area?
The Texas Office of the Attorney General has published revised proposed regulations for Senate Bill 17, which limits property ownership by foreign entities. The rules aim to clarify compliance and enforcement regarding restricted acquisitions.
Why it matters
These regulations are designed to implement legislation that prohibits foreign persons and entities from certain countries from obtaining interests in Texas real property. The update aims to strengthen oversight and facilitate reporting for entities involved in property transactions.
The revised rules establish that persons holding at least 10% of voting interests in an entity are considered to exercise control under the statute. These regulations impact foreign entities associated with China, Russia, Iran, and North Korea.
The players
Texas Office of the Attorney General
This state agency is responsible for enforcing laws and representing the state of Texas in legal matters.
The details
The proposal introduces a conditional due diligence safe harbor for entities facilitating property sales and mandates reporting for post-closing transfers to affiliates. It also outlines the creation of a public property-search portal for interests acquired before the law went into effect in 2025.
Timeline
Senate Bill 17 became effective Sept. 1, 2025.
The Attorney General published initial proposed rules on March 27, 2026.
The Attorney General published revised proposed rules on Oct. 9, 2026.
Culture Shift
The proposed regulations represent an escalation in state-level oversight of foreign investment in domestic real estate markets. This follows a growing trend of states codifying national security concerns into local property and land-use laws.
Real estate professionals and facilitating entities must prepare for enhanced due diligence requirements regarding foreign buyers. Residents should monitor the upcoming property-search portal for information regarding state-wide land ownership.
The takeaway
The proposed rules increase the burden of proof for entities to ensure they are not facilitating restricted foreign property purchases. Affected parties should review the updated reporting requirements to ensure compliance with the ongoing implementation of Senate Bill 17.
Further reading
For additional updates on property regulations, visit the Texas Commercial section.
Source note: This article includes information reported by The National Law Review - A Free To Use Nationwide Database of Legal Publications.
Live Poll
Should foreign entities be restricted from purchasing residential or commercial real estate in your area?
