Paxton Unveils Rules to Enforce Texas Ban on Hostile Foreign Land Ownership
The new law targets countries such as China, Iran, Russia, and North Korea.
By Sydnie Henry, Texas Scoreboard
Attorney General Ken Paxton has formally launched the rulemaking process to enforce a new state law banning land purchases by hostile foreign regimes such as China.
During the 89th Legislature, lawmakers passed Senate Bill 17 to restrict the purchase or acquisition of Texas real property by certain individuals and entities tied to designated foreign adversaries, including China, Russia, Iran, and North Korea. The law, which took effect September 1, 2025, is aimed at reducing national security risks and protecting Texas land and critical infrastructure from foreign control.
Paxton’s office has now proposed detailed rules to implement the statute. The proposal was submitted to the Secretary of State on March 16 and published in the Texas Register on March 27, triggering a public comment period before the rules can be finalized. The draft rules flesh out how SB 17 will work in practice, with the Office of the Attorney General as the central enforcement hub for the ban.
One of the most significant features is a new duty to report suspected violations. Under the proposal, anyone involved in facilitating a real estate transaction—such as mortgage lenders, title insurance companies, property insurers, appraisers, and licensed real estate professionals—would be required to report any suspected SB 17 violations to the attorney general. Complaints would have to be submitted either through an online complaint form on the OAG’s website or by mail to a designated address. Failure to report may subject entities to enforcement action once the rules are in place, potentially deputizing the real estate industry to help police foreign adversary land deals.
The rules would also place a tight lid on information that reaches Paxton’s office. All complaints, civil investigative demands, and related materials submitted to or issued by the OAG would be treated as confidential and not subject to public disclosure, except when disclosure is required by law. That means Texans may see enforcement actions and lawsuits, but not necessarily the complaints and background investigation files that triggered them. “My office will use every tool available to prevent our nation’s enemies from gaining a foothold on Texas soil,” stated Paxton. “These proposed rules will strengthen the reporting of suspicious activity and better protect our state from hostile foreign actors.”
For now, the rules are only proposed. Texans have until April 27 to weigh in through the formal comment process before the rule is finalized.
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