TITLE: Relating to interests of certain foreign governments in real property.

SUMMARY: Relating to interests of certain foreign governments in real property.

FULL TEXT:
AN ACT relating to interests of certain foreign governments in real property. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 5.005, Property Code, is amended to read as follows: Sec. 5.005. ALIENS. Except as provided by Subchapter H, an [An] alien has the same real and personal property rights as a United States citizen. SECTION 2. Chapter 5, Property Code, is amended by adding Subchapter Hto read as follows: SUBCHAPTER H. INTERESTS OF CERTAIN FOREIGN GOVERNMENTS IN REAL PROPERTY Sec. 5.251. DEFINITION. In this subchapter, "foreign government" means the government of China, Iran, Iraq, North Korea, Russia, or Syria. Sec. 5.252. CERTAIN INTERESTS IN REAL PROPERTY PROHIBITED. (a) Notwithstanding any other law, and except as provided by Section 5.253, the following may not lease, purchase, or otherwise acquire title to or hold any other interest in real property in this state: (1) a foreign government; (2) a company or other entity that is directly or indirectly held or controlled by a foreign government; or (3) a company or other entity that is owned by or the majority of stock or other ownership interest of which is held or controlled by a company or entity described by Subdivision (2). (b) A transfer of an interest in real property in violation of this section is void. Sec. 5.253. PROPERTY INTEREST HELD ON AUGUST 31, 2025. (a) Subject to Subsection (b), an entity described by Section 5.252 may hold an interest in real property if the interest was held by the entity on August 31, 2025. (b) An interest in real property held by an entity described by Section 5.252 that terminates on or after September 1, 2025, may not be renewed by the entity. SECTION 3. This Act takes effect September 1, 2025.