In the recent Texas legislative session, a new bill focused on foreign ownership of real property was passed. Senate Bill 17 was signed into law by Governor Greg Abbott on June 20, 2025, and went into effect on September 1, 2025. SB 17 will prohibit and impose new civil and criminal penalties against certain foreign entities and prevent individuals from the countries of China, Russia, Iran, and North Korea from acquiring real property (homes, commercial property, farmland, etc.) in Texas.
The 2025 edition of the Texas Real Estate Forms Manual features § 2.113, a new section on the foreign ownership of real property. While this section was written before SB 17 passed, it features pertinent information relating to foreign ownership of real property in Texas.
While Tex. Prop. Code § 5.005 states that “an alien has the same real and personal property rights as a United States citizen,” this statement was limited by SB 2116 of the 2021 Texas legislature, which restricted foreign ownership of energy infrastructure such as solar farms. With the signing of Senate Bill 17, foreign ownership restrictions will continue to expand.
Future editions of the Texas Real Estate Forms Manual will delve deeper into SB 17 and the ramifications it will have for the ownership of real property.
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