Texas Updates Rules for Foreign Property Ownership
Entities facilitating Texas real estate deals must now navigate revised due diligence and reporting requirements.
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 released revised proposed rules to enforce Senate Bill 17, which restricts property acquisitions by foreign entities from designated nations. These updates impact how real estate transactions are vetted for ownership from China, Russia, Iran, and North Korea.
Why it matters
These rules provide a clearer regulatory framework for how facilitating entities must conduct due diligence and report potential violations of the property ownership restrictions. The proposed changes aim to tighten compliance oversight for land transfers in Texas.
The proposal sets a 10% voting interest threshold to define when an entity is considered under foreign control. While the state statute effective since September 2025 restricts specific foreign acquisitions, the impact on individual real estate transactions depends on finalized due diligence protocols.
The players
Texas Office of the Attorney General
The state agency responsible for the legal enforcement of Senate Bill 17 and the management of property-ownership reporting.
The details
Under the proposed framework, facilitating entities are required to perform due diligence and report transactions that may violate the restrictions on foreign owners from China, Russia, Iran, and North Korea. A new conditional safe harbor is introduced to protect entities that follow these procedures. Furthermore, the attorney general plans to launch a public portal to track property interests acquired before the law took effect in 2025.
Timeline
Senate Bill 17 became effective on Sept. 1, 2025.
The attorney general published initial proposed rules on March 27, 2026.
Revised proposed rules were published on Oct. 9, 2026.
Money Landscape
These revisions represent the next phase in the implementation of Senate Bill 17, which reshaped the regulatory environment for foreign investment in Texas real estate. The shift clarifies the compliance obligations for market participants following the law's 2025 effective date.
Entities involved in Texas property transactions should review their due diligence processes to align with the new 10% control threshold and reporting requirements. Consult with a qualified real estate attorney to evaluate how these evolving rules affect current or future property interest assignments.
The takeaway
The state is working to formalize how it identifies foreign-controlled property interests through updated reporting and a new public portal. Property owners and facilitators should monitor the attorney general's office for the final adoption of these rules and the launch date of the search portal.
Further reading
For broader context on market regulations, explore Commercial real estate developments.
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?
