A state law effective September 1, 2025, restricts the acquisition of real property interests in Texas by certain individuals, entities, and governments associated with countries identified by the U.S. director of national intelligence or the Texas governor as a national security threat. (Additional details in this PDF.)

What types of transactions are restricted?

Purchases, acquisitions, and leases of one year or more.

Which countries are currently on the list?

As of August, 18, 2025: China, Russia, Iran, and North Korea.

What types of properties are affected?

A broad range of real property interests, including residential, commercial, industrial, agricultural land and improvements, minerals, mines and quarries, timber, groundwater, and water rights.

Are agents or brokers required to enforce this?

No. Real estate professionals have no additional duties under this law.

Have any forms or notices been updated to inform consumers of this law?

Texas REALTORS® decided to add a statement to the Commercial Buyer/Tenant Representation Agreement (TXR 1502) (updated Sept. 1, 2025) that briefly explains the new law and recommends that clients who believe the restrictions apply to them consult an attorney. Other Texas REALTORS® buyer/tenant representation agreements are under consideration for similar changes.

How is this law enforced?

The Texas attorney general is responsible for enforcing the law.

What happens if a transaction closes or a lease of one year or longer is executed with a prohibited party?

The law does not invalidate a purchase contract; the law does allow divestment of the individual’s or entity’s interest through sale of the interest or, in the case of a lease, termination of the leasehold.

Does this change REALTORS®’ responsibilities related to fair housing or the Code of Ethics?

No.