5th Circuit Upholds Dismissal of Lawsuit Challenging S.B. 17 Prohibiting Certain Foreign Buyers from Owning Land in Texas

December 12, 2025 | Insights



By Jenny Roan Forgey and Robert L. Soza

The Fifth Circuit Court of Appeals recently ruled on a case filed in federal court challenging the constitutionality of Senate Bill 17, a bill passed during the 2025 legislative session that bans certain persons, entities, and governments from purchasing or otherwise acquiring real property in the State of Texas.

This law has created many questions among property owners, especially investors seeking to do business in the State. With the Fifth Circuit’s ruling in Wang v. Paxton, the Court has provided some clarity on the question of who has standing to sue under the law and the definition of a key term in SB 17 that triggers its’ prohibitions.

Texas S.B. No. 17 imposes sweeping restrictions on the purchase or acquisition of real property by certain foreign individuals, entities, and governments. Further examination of the legislation can be found in previous Jackson Walker insight, “Analysis of Texas S.B. No. 17 Restricting Foreign Ownership of Real Property in Texas”.


The opinions expressed are those of the authors and do not necessarily reflect the views of the firm, its clients, or any of its or their respective affiliates. This article is for informational purposes only and does not constitute legal advice. For more information, please contact Robert Soza and Jenny Roan Forgey.