Gov. Greg Abbott said “foreign adversaries like China, Russian, Iran and North Korea” and terrorist organizations “must not be allowed to own land in Texas.”
Citizens of a handful of countries deemed hostile to U.S. interests are now banned from buying real estate in Texas.
On Aug. 26, Texas Gov. Greg Abbott signed a series of companion bills — House Bill 128, Senate Bill 17 and Senate Bill 1349 — into law, which prohibit the sale of real estate to buyers from China, Iran, North Korea and Russia. This includes individuals, companies, government agencies and other organizations based in the aforementioned countries.
The new law took effect on Sept. 1.
Why Texas is outlawing sales to specific foreign buyers: The four countries were targeted for being “identified by the United States Director of National Intelligence as a country that poses a risk” to national security, SB 17 indicates. The law grants the Texas attorney general powers to investigate and take legal action if property acquisitions by certain foreign parties “would create a risk” to the public’s health, safety or welfare.
HB 17, another companion bill that spelled out specific penalties — including criminal charges and fines — for foreign buyers who purchase Texas property, was left pending in committee in April.
What Abbott said: “It is very simple. Hostile foreign adversaries like China, Russian, Iran and North Korea, as well as foreign terrorist organizations like Tren de Aragua, must not be allowed to own land in Texas,” Abbott said while signing the bills into law. “They should not be allowed access to our critical infrastructure, and they may not be allowed to exploit our border. Stiff, criminal penalties will be inflicted on those who violate these laws.”
Why it matters: According to a recent National Association of Realtors report, Texas is the third most popular state among international buyers who purchase property in the U.S., accounting for 10% of foreign purchases. China is the top country of origin among international buyers at 15%, with Chinese buyers purchasing $13.7 billion of U.S. real estate between April 2024 and March 2025.
Laws targeting foreign buyers have not come without controversy. Some argue that banning specific foreign nationals from buying property impedes individual civil rights and codifies discrimination. In May, the ACLU of Texas described SB 17 as an “unconstitutional” bill that would “promote racial profiling against citizens and non-citizens wanting to purchase or lease property,” leading to increased “anti-immigrant hate.”
Following Florida’s lead: Florida has witnessed similar efforts to limit the sale of property to certain non-U.S. citizens. In July 2023, Florida Senate Bill 264 went into effect. The law prohibits organizations and “foreign principals” from China, Russia, Iran, North Korea, Cuba, Venezuela and Syria from taking government contracts and owning Florida real…
Read More: Texas bans property sales to some international buyers
