Law seeks to ban certain countries from buying property in Texas

Texas is considering legislation prohibiting certain countries' governments, citizens, and businesses from buying real estate in Texas. Senate Bill 147, introduced by Brenham Republican Lois Kolkhorst, builds on a law passed in 2021 that bars China, Russia, Iran, and North Korea from owning or controlling critical infrastructure projects in Texas, which have been said to be harmful to national and state interests.

The 2021 law, known as the Lone Star Infrastructure Protection Act, was created in response to numerous ransomware attacks by foreign entities and a hacking incident involving a Russian entity that targeted a computer network operated by the city of Austin.

The countries targeted in the law were chosen due to "acts of aggression towards the United States, human rights abuses and other hostile actions,” according to the legislation's analysis of the bill.

"The growing ownership of Texas land by some foreign entities is highly disturbing and raises red flags for many Texans," Kolkhorst said in a news release. "By comparison, as an American, go try to buy land near a Chinese military base and see how it works out for you."

This new legislation addresses concerns about foreign entities owning and controlling Texas land. Texas currently ranks third in the nation as a destination for foreign entities seeking to purchase real estate in the United States, according to a 2022 report by the National Association of Realtors.

China was third among the list of countries with entities that purchased property in the United States in 2021 and 2022, according to the Realtors' report. Mexico and Canada ranked No. 1 and No. 2 in both years.

While the 2021 infrastructure measure passed without opposition in the Legislature, Texas real estate interest groups appear to be taking a wait-and-see approach to the latest bill. While entities associated with China were not among Texas’s major foreign land buyers in recent years, some of their purchases have had significant impacts.

DC Partners, an international real estate investment and development firm based in Houston, has touted the project as a major economic development catalyst for the region and has publicly thanked Houston Mayor Sylvester Turner for supporting the venture.

Texas governor Greg Abbott, who praised the 2021 law and called it "the first of its kind," appears equally enthusiastic about the new proposed law. "I will sign it," Abbott said in a recent tweet.