Starting September 1, 2025, a new Texas law—Senate Bill 17 (SB 17)—will take effect, placing restrictions on the acquisition and lease of Texas real estate by certain foreign individuals, governments, and entities.
This law may impact some transactions moving forward, and as a buyer, investor, or real estate observer in Central Texas, it’s important to understand what it does (and does not) mean for the market.
SB 17 is a state law that restricts property ownership and long-term leases by people and organizations connected to countries the U.S. has identified as national security threats.
As of August 11, 2025, the restricted countries include:
The governor of Texas may expand the list in the future.
The restrictions apply broadly and include:
Importantly, this only applies to transactions closing on or after September 1, 2025. Properties purchased or leased before that date are not affected.
SB 17 applies to:
However, there are exceptions. Individuals who are lawfully present in the U.S. may still purchase property for personal homestead use. U.S. citizens, lawful permanent residents, and U.S.-based businesses they own are also exempt—unless ownership or control ties back to a restricted entity.
The Texas Attorney General will oversee enforcement. If a property is acquired in violation of the law:
This law does not invalidate a purchase contract that’s already in motion—even if the transaction would be restricted under SB 17
No. Real estate agents and brokers are not responsible for enforcing SB 17. However, Texas REALTORS® is monitoring the law closely and may update contracts or forms in the future to ensure clarity and compliance.
It’s important to note that nothing in SB 17 overrides the Fair Housing Act. REALTORS® must continue to provide equal professional service to all clients and consumers, regardless of nationality or background.
For most of our clients in Austin, Buda, Kyle, and the surrounding areas, this law will not impact your ability to buy or sell real estate. However, if you’re part of a business transaction involving foreign investment, or if you’re helping family members abroad explore ownership, it’s smart to:
At least one lawsuit has already been filed challenging the constitutionality of SB 17. Legal updates are expected in the coming months.
Whether you’re a first-time buyer, an international client, or an investor navigating a changing landscape, I’m here to help you understand your options and move forward with confidence.
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Contact Brandon Holley at 512.487.9242 | brandon@holleyhomesrealty.com | Contact
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