What’s new (effective Sept. 1, 2025): Texas enacted SB 17 (89th Legislature), a law that restricts the purchase or other acquisition of interests in real property by certain foreign governments, companies, and individuals tied to China, Iran, North Korea, and Russia—and lets the governor add more “designated countries.” Violations can trigger state-jail felony charges for individuals and civil penalties for entities up to the greater of $250,000 or 50% of the property’s market value. The law applies only to transactions on or after Sept. 1, 2025.
Who’s covered & key exceptions:
- Covered: Government entities and companies from designated countries; companies they control; and certain individuals (including those domiciled in, or acting for, a designated country).
- Primary-home exception: Individuals lawfully present and residing in the U.S. may buy oneresidential property as their homestead (primary residence).
- Lease exception: Leaseholds under one year are exempt; leases of a year or longer can fall under the ban and may be void if they violate the law.
- Enforcement: The Attorney General can investigate and seek divestiture (including termination of an offending leasehold) and pursue criminal/civil penalties.
Why this matters for newcomers:
- If you hold citizenship or ties covered by the law, plan on renting month-to-month or for <12 months, or use the single-homestead path if you’re lawfully present and residing in the U.S. (talk to an attorney before you sign).
- Texas also leads the nation in homebuilding—about 15% of all U.S. permits in 2023–24—and builders are delivering smaller, more affordable new homes (median size down ~5.3% since 2020), with a large share listed under $350,000. That’s good news if you’re shopping on a budget.
Context: Texas has a sizable Chinese-born population—~132,000 residents born in mainland China(ACS 2023)—so the policy’s reach is meaningful in some communities.