| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the purchase of or other acquisition of title to real |
|
|
property by prohibited foreign actors. |
|
|
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 Section 5.0051, |
|
|
an [An] alien has the same real and personal property rights as a |
|
|
United States citizen. |
|
|
SECTION 2. Subchapter A, Chapter 5, Property Code, is |
|
|
amended by adding Section 5.0051 to read as follows: |
|
|
Sec. 5.0051. FOREIGN OWNERSHIP OR ACQUISITION OF REAL |
|
|
PROPERTY. (a) In this section: |
|
|
(1) "Real property" has the meaning assigned by |
|
|
Section 1.04(2), Tax Code. |
|
|
(2) "Prohibited foreign actor" means an alien, |
|
|
business, government, or an agent, trustee, or fiduciary of an |
|
|
alien, business, or government from a country identified as a |
|
|
country that poses a risk to the national security of the United |
|
|
States in the most recent annual report on worldwide threats, |
|
|
commonly known as the Annual Threat Assessment, issued by the |
|
|
Director of National Intelligence pursuant to Section 108B, |
|
|
National Security Act of 1947 (50 U.S.C. 3043b). |
|
|
(b) Notwithstanding any other law, a prohibited foreign |
|
|
actor may not purchase or otherwise acquire title to real property |
|
|
in this state without written notification to the seller. |
|
|
(c) A buyer required to provide written notification under |
|
|
Subsection (b) shall do so as soon as reasonably possible, but not |
|
|
later than 10 days before the closing of the property. The |
|
|
notification shall specifically identify: |
|
|
(1) whether the buyer is an alien, foreign business, |
|
|
foreign government, or an agent, trustee, or fiduciary of an alien, |
|
|
foreign business, or foreign government; and |
|
|
(2) the buyer's country of citizenship or country of |
|
|
creation or organization. |
|
|
(d) Upon receipt of written notification described by |
|
|
Subsection (c), a seller may choose to proceed with the sale of the |
|
|
property or immediately revoke any promise to sell the property. |
|
|
(e) A court shall dismiss any action brought against a |
|
|
seller for revoking a promise to sell real property based on a |
|
|
notification provided under Subsection (c), and no party shall |
|
|
recover any damages in a suit against a seller if the seller revokes |
|
|
a promise to sell based on notification provided under Subsection |
|
|
(c). |
|
|
(f) The Texas Real Estate Commission shall develop a form to |
|
|
provide the written notification required by Subsection (c). |
|
|
SECTION 3. The changes in law made by this Act apply only to |
|
|
the purchase of or other acquisition of title to real property on or |
|
|
after the effective date of this Act. The purchase of or other |
|
|
acquisition of title to real property before the effective date of |
|
|
this Act is governed by the law in effect immediately before the |
|
|
effective date of this Act, and that law is continued in effect for |
|
|
that purpose. |
|
|
SECTION 4. This Act takes effect September 1, 2023. |