Proposed Rules on Foreign Land Ownership

TX Attorney General News Releases

Published March 27th, 2026

Detected March 28th, 2026

Summary

The Texas Attorney General's Office has proposed rules to implement Senate Bill 17, prohibiting designated foreign adversaries from owning land in Texas. The proposed rules detail definitions, investigative procedures, and reporting obligations for real estate professionals and financial entities, aiming to mitigate national security risks.

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What changed

The Texas Attorney General's Office has initiated the formal rulemaking process by proposing rules to implement Senate Bill 17, which restricts land ownership by designated foreign adversaries, including China, Russia, Iran, and North Korea. These proposed rules, submitted on March 16, 2026, and published on March 27, 2026, define key terms, establish the OAG's authority, and outline investigative procedures such as civil investigative demands. They also specify reporting obligations for entities involved in real estate transactions, including mortgage lenders, title insurers, and real estate professionals.

Entities involved in real estate transactions, such as mortgage lenders, title insurance companies, appraisers, and licensed real estate professionals, are now required to report suspected violations of SB 17 to the OAG. Complaints must be submitted electronically or by mail. All submitted materials will be kept confidential unless legally required otherwise. The proposed rules aim to strengthen the reporting of suspicious activity and protect Texas from hostile foreign actors, with a public comment period preceding finalization.

What to do next

Review proposed rules for impact on real estate transactions.
Prepare to implement reporting obligations for suspected violations.
Submit public comments by the close of the comment period.

Source document (simplified)

Attorney General Ken Paxton has proposed a formal set of rules to implement and administer Senate Bill 17 (89(R)), which prohibits certain designated foreign entities from owning land in Texas. This proposal begins the formal rulemaking process, which includes a public comment period before any rules may be finalized.

The Texas Legislature passed SB 17 during the 89 th Legislative session, and the law took effect on September 1, 2025. The statute restricts the purchase or acquisition of real property by certain individuals and entities from designated adversarial nations, including China, Russia, Iran, and North Korea. It aims to mitigate national security risks and protect Texas land and critical infrastructure from foreign threats.

The Office of the Attorney General (“OAG”) has proposed comprehensive rules to guide future implementation. The proposed rules define key terms, outline the structure and authority of the OAG, and detail investigative procedures, including civil investigative demands and response requirements. The proposed rules also address reporting obligations, confidentiality protections, and include savings and severability clauses. The proposed rules were submitted to the Secretary of State on March 16, 2026, and published in the Texas Register today, Friday, March 27.

Under these rules, individuals and entities involved in facilitating real estate transactions such as a mortgage lender, title insurance company, property insurer, appraiser, or licensed real estate professional would be required to report any suspected violations of the law to the Office of the Attorney General. Complaints would be required to be submitted electronically through the OAG’s online complaint form found on the agency’s website or by mail to the address designated by the OAG for this purpose.

Under the proposed rules, all complaints, civil investigative demands, and related materials submitted to or issued by the OAG would be confidential and not subject to public disclosure, except as required by law.

“My office will use every tool available to prevent our nation’s enemies from gaining a foothold on Texas soil,” said Attorney General Paxton. “These proposed rules will strengthen the reporting of suspicious activity and better protect our state from hostile foreign actors.”

To read the proposed rules, click here.