The proposed bill, SB1403, aims to restrict foreign principals from designated countries identified as national security risks from purchasing or owning real property in Arizona. The Attorney General is tasked with enforcing this prohibition, and if violations occur, courts must order the divestment of the property, with proceeds directed to the state General Fund. The bill also modifies the definition of "foreign principal" and removes previous restrictions on leasing real property, while introducing specific exemptions for residential properties that meet certain criteria, such as size and the foreign principal holding a valid U.S. visa.

In addition to these provisions, the bill clarifies what constitutes a foreign principal and substantial interest, allowing for property acquisition through inheritance or debt collection under certain conditions. It also ensures that title insurers and agents are not held liable for violations of this law, and such violations cannot be used as grounds for title insurance claims. Overall, SB1403 seeks to enhance state security by tightening restrictions on foreign ownership of real estate while allowing limited exceptions.

Statutes affected:
Introduced Version: 33-443
Senate Engrossed Version: 33-443
House Engrossed Version: 33-443