Texas Attorney General Ken Paxton proposed expanded rules to enforce the state’s foreign property ownership restrictions, adding public reporting provisions and plans for a searchable property portal.
Paxton’s office announced the proposal as an update to its earlier rules for Senate Bill 17, which took effect September 1, 2025. The law restricts certain individuals and entities connected to designated foreign adversaries, including China, Russia, Iran and North Korea, from acquiring interests in Texas real property.
“My strengthened rules will increase transparency, empower Texans to report potential violations,” Paxton said in the October 9 press release.
The October 9 Texas Register says any person who has reason to believe a purchase or acquisition violates the law may submit a complaint. It also says a facilitating entity that conducts know-your-customer due diligence consistent with an applicable regulator’s guidelines, or with standards a recognized industry group adopted in good faith, and does not discover a violation is not deemed to have known of one.
The proposal authorizes the attorney general’s office to prepare a plan for a public property-search portal. The proposed rules say the portal specifications may operate in a manner similar to other statewide public registries, including the Texas sex offender registration database. Paxton’s office said the office would develop a plan for that portal, including covered ownership predating SB 17, and the proposal does not launch it.
The proposed rules say any person may file a voluntary report on property acquired before September 1, 2025, if they have reason to believe the owner meets the statute’s definitions. They also say those reports are not complaints and that submission does not, by itself, indicate a violation occurred.
The Property Code exempts U.S. citizens and lawful permanent residents, certain companies or organizations they own or control, and leasehold interests lasting less than one year. The restrictions do not apply to every foreign buyer.
As The Dallas Express previously reported during the 2025 legislative debate, critics of the proposed restrictions argued that residency and leasing exceptions left loopholes. That coverage addressed legislation before lawmakers enacted the final law.
Paxton’s office also said it has begun planning a task force focused on foreign land sales.
The rules remain a proposal. The October 9 Texas Register says comments will be accepted for 30 days at OAGRuleCommentsCh67@oag.texas.gov and lists November 8, 2026, as the earliest possible adoption date. Paxton’s office said the proposal would appear in that issue.
Provided by Dallas Express
