Buying Land in Texas May Get Tougher—Here’s Why That Matters

Texas Property Law Update: What SB 17 Could Mean for Real Estate in 2025

A recent bill moving through the Texas Legislature could have a significant impact on how—and by whom—land is bought in our state.

On May 10, the Texas House passed a revised version of Senate Bill 17 (SB 17), which gives the governor the authority to decide which countries' residents, governments, and businesses are restricted from buying property in Texas. Initially, the bill only applied to countries already identified as national security threats by U.S. intelligence: China, Iran, North Korea, and Russia. The new version opens the door to a broader and more flexible list.

What’s in SB 17?

The bill proposes the following:

• Restricts land purchases and long-term leases (over one year) by individuals or entities tied to countries designated by the governor.

• Exempts lawful permanent residents, but not visa holders such as students, researchers, or professionals.

• Applies only to transactions made after September 1, 2025.

• Creates a legal process where violations can result in forced divestment of the property and possible criminal charges.

• Oversight and enforcement would be managed by the Attorney General and district courts.

What This Means for Real Estate in Texas

As a real estate professional working in North Texas, I see firsthand how complex and interconnected today’s market has become. While international buyers may not make up a huge percentage of property purchases, they still influence pricing, demand, and investment in key areas.

Here are a few ways this bill might impact the industry:

• Foreign investment could slow down in markets like Dallas-Fort Worth, especially when it comes to land development or agricultural property.

• Realtors and buyers may need to navigate more complicated legal and screening processes to determine eligibility.

• Some international clients might feel discouraged or confused, especially those here on temporary visas.

The Debate Around the Bill

Supporters of the bill argue it’s about national security—keeping land and natural resources out of the hands of governments that may not have Texas’s best interests in mind.

Critics, however, say the bill opens the door to discrimination. Several lawmakers and community groups have warned that it could unintentionally target Asian Americans or other immigrant communities, regardless of their legal status or intentions. There are concerns that individuals will be treated as representatives of foreign governments simply because of where they live or were born.

Organizations like Asian Texans for Justice have pointed out the danger of blurring the lines between governments and individuals. Their concern is that this law may create an atmosphere of suspicion that hurts real people—and that it could backfire politically in upcoming elections.

Looking Ahead

If this bill becomes law, it will go into effect in September. That gives us some time to understand the implications and help our clients prepare.

For now, my advice is this: If you're an international investor, or if you're working with someone who is, it's important to stay informed. As agents, we’ll need to adapt to any new legal requirements, just like we always do. And as Texans, it’s worth considering how these policies affect not only security—but also fairness and opportunity.

If you have questions or need help navigating property purchases in Texas, I’m always here to help.