A bill introduced in the Texas Legislature would ban those with ties to certain countries from buying land, potentially hampering deals in one of the most popular states for international investors in commercial real estate.
Texas Senate Bill 147 would prohibit citizens, entities and governments from China, Iran, North Korea and Russia from purchasing land within the state of Texas. Texas Republican Sen. Lois W. Kolkhorst said in a statement that she filed the bill to address growing concerns in protecting Texas land against foreign government ownership.
SB 147 is in the early stages, but Texas Gov. Greg Abbott already tweeted his support of the bill over the weekend, saying he would sign it into law if it makes its way onto his desk. If passed, the ban would take effect on Sept. 1. A similar proposal is being considered in Florida that would ban land purchases by entities affiliated with China.
Between April 2021 and March 2022, Texas was the second-most popular U.S. state for international real estate investors, according to a report from the National Association of Realtors. Florida came in first.
SB 147 only applies to future purchases in Texas. A citizen, entity or government agency from China, Iran, North Korea or Russia would not be prohibited from leasing property in Texas under the proposed bill.
TikTok, the video-based social media platform owned by China-based ByteDance, leased the top six floors at 300 Colorado St., a 32-story office tower in downtown Austin that was completed in 2021.
The bill is one of more than 1,000 that have been filed as part of the Texas Legislature's regular session that began Jan. 10 and runs through May 29. The Republican-dominated Texas Legislature meets every two years in Austin.