Texas has joined a growing number of states limiting foreign ownership of real estate with the enactment of Senate Bill 17, signed by Governor Greg Abbott in June. The statute prohibits individuals and business entities associated with nations that the United States deems national security risk—namely China, Iran, North Korea, and Russia—from purchasing or otherwise acquiring any “real property” located within Texas.

In a recent interview with Spectrum News 1 Dallas, Jackson Walker partner Robert L. Soza and senior counsel Jenny Roan Forgey discussed both the scope of the term “real property” and the practical implications of the new legislation for foreign investors already operating in the state.

Jenny emphasized that the statutory definition is sweeping: “Real property includes things like mines, quarries, mineral interests, water rights, standing timber, industrial property, ground water, commercial property, agricultural land and an improvement on agricultural land.”

Robert highlighted the legal uncertainty affecting both sides of the market: “Both buyers and sellers are struggling with trying to figure out what can and can’t be done. Even those people who have purchased property, for example, from China prior to this law, are concerned about whether or not they can continue to own the property, which, we’ve been advising that they can.”

How the statute will be enforced and whether additional guidance will emerge remain open questions. For now, stakeholders confronting cross-border real estate deals in Texas should proceed with heightened diligence.

To watch the full interview, visit “New Texas Law Bans Certain Foreign Nationals From Buying Land” available on the Spectrum News 1 website.

Meet Robert

Robert L. Soza is a licensed U.S. Customs Broker with extensive experience in Anti-Corruption, Anti-Money Laundering, FCPA, U.S. export control, customs, trade sanctions, and CFIUS compliance. He has conducted audits, advised on enforcement matters, prepared voluntary disclosures, and represented clients in administrative, criminal, and civil proceedings before key U.S. agencies. Robert has led investigations into FCPA violations, developed global compliance policies and training, and published articles on Mexico’s legal system, anti-corruption, U.S. sanctions, and export controls.

Meet Jenny

Jenny Roan Forgey is an attorney in the Land Use and Real Estate sections of Jackson Walker’s Austin office. She represents developers, owners, buyers, sellers, and investors in a wide range of commercial and residential real estate transactions, with a focus on acquisitions, dispositions, development, entitlement, and governance. Jenny specializes in complex transactions and the development and governance of master-planned and mixed-use communities. She is known for her expertise in drafting governance documents for planned communities and condominium regimes, and for her creative solutions to challenges in entitling and platting property. Jenny also serves as a member of the Jackson Walker Data Center team due to her expertise in structuring governance systems unique to data centers.