Bill Text: TX HB1566 | 2025-2026 | 89th Legislature | Introduced

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Bill Title: Relating to the purchase of or acquisition of title to real property by certain foreign entities.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2024-12-10 - Filed [HB1566 Detail]

Download: Texas-2025-HB1566-Introduced.html

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89R3251 DRS-F
By: Patterson H.B. No. 1566

A BILL TO BE ENTITLED
AN ACT
relating to the purchase of or acquisition of title to real property
by certain foreign entities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 5.005, Property Code, is amended to read
as follows:
Sec. 5.005. ALIENS. Except as provided by Subchapter H, an
[An] alien has the same real and personal property rights as a
United States citizen.
SECTION 2. Chapter 5, Property Code, is amended by adding
Subchapter H to read as follows:
SUBCHAPTER H. PURCHASE OF OR ACQUISITION OF TITLE TO REAL
PROPERTY BY CERTAIN FOREIGN ENTITIES
Sec. 5.251. DEFINITIONS. In this subchapter:
(1) "Control" means the right to exercise more than 50
percent of an organization's voting interests to elect the
governing authority or governing person of the organization.
(2) "Designated country" means a country identified by
the United States Director of National Intelligence as a country
that poses a risk to the national security of the United States in
each of the three most recent Annual Threat Assessments of the U.S.
Intelligence Community issued pursuant to Section 108B, National
Security Act of 1947 (50 U.S.C. Section 3043b).
(3) "Governing authority," "governing person," and
"organization" have the meanings assigned by Section 1.002,
Business Organizations Code.
(4) "Real property" means:
(A) land;
(B) an improvement;
(C) a mine or quarry;
(D) a mineral in place;
(E) standing timber; or
(F) an estate or interest, other than:
(i) a mortgage or deed of trust creating a
lien on or an interest securing payment or performance of an
obligation in property described by Paragraphs (A) through (E); or
(ii) a leasehold estate in land or an
improvement for a term of five or fewer years.
Sec. 5.252. PROHIBITION ON PURCHASE OF OR ACQUISITION OF
TITLE TO REAL PROPERTY. Notwithstanding any other law, the
following may not purchase or otherwise acquire title to real
property in this state:
(1) a governmental entity of a designated country;
(2) an organization that is:
(A) headquartered in a designated country; or
(B) directly or indirectly under the control of
the government of a designated country; or
(3) an organization that is under the control of an
organization described by Subdivision (2).
Sec. 5.253. ATTORNEY GENERAL ENFORCEMENT. (a) If the
attorney general has reason to believe that an entity has purchased
or otherwise acquired title to real property in violation of
Section 5.252, the attorney general may bring an action to enforce
this subchapter in a district court in the county where all or part
of the real property subject to the violation is located.
(b) The attorney general shall record notice of an action
brought under Subsection (a) in the real property records of each
county where any part of the real property subject to the action is
located.
(c) If the district court finds that the real property
subject to an action brought under Subsection (a) was purchased or
otherwise acquired by an entity in violation of Section 5.252, the
court shall enter an order stating that finding and appoint a
receiver to manage, control, and sell the real property.
(d) On appointment and qualification, a receiver appointed
under this section has the powers and duties of a receiver under
Chapter 64, Civil Practice and Remedies Code.
(e) A purchase of or acquisition of title to real property
in violation of Section 5.252 is not void because of the violation,
and the validity or enforceability by any person of a purchase
contract for or the conveyance of the real property is not otherwise
affected by the violation.
SECTION 3. As soon as practicable after the effective date
of this Act, the attorney general shall adopt rules for the
implementation of Subchapter H, Chapter 5, Property Code, as added
by this Act.
SECTION 4. The changes in law made by this Act apply only to
the purchase of or other acquisition of title to real property on or
after the effective date of this Act. The purchase of or other
acquisition of title to real property before the effective date of
this Act is governed by the law in effect immediately before the
effective date of this Act, and that law is continued in effect for
that purpose.
SECTION 5. This Act takes effect September 1, 2025.