Texas SB 17:

Foreign Ownership Restrictions

Texas SB 17: Foreign Ownership Restrictions (Effective Sept 1, 2025)


SB 17 bans certain foreign nationals, governments, and entities from buying or acquiring interests in Texas real estate, including residential, commercial, agricultural land, leases (1+ year), minerals, and water rights.


Who Is Restricted

  • Citizens/residents of "designated countries": China, Russia, Iran, North Korea (expandable by the Governor).
  • Entities owned/controlled (majority or indirect) by them, including U.S. subsidiaries.
  • Exceptions: U.S. citizens, green card holders, and some short leases.


Penalties for Violations

  • Civil: Greater of $250K or 50% property value; forced sale/divestiture.
  • Criminal: State jail felony for intentional acts.


Applicability to Red Leaf Investments

  • If your investments involve Texas property (e.g., North Texas developments): Disclose SB 17 compliance in offering docs, require investor certifications on foreign status/ownership.
  • Website Disclosure: Add to Disclosures/Investment Risk page: "Investments comply with Texas SB 17 foreign ownership restrictions. Prohibited entities ineligible."
  • Due Diligence: Screen investors for ties to designated countries—mandatory for syndications/equity.
  • Not Applicable If: All non-Texas assets or no foreign investors targeted.