The proposed bill would amend current statutes by adding a new section, 33-443, to the Arizona Revised Statutes, which would prohibit foreign principals from designated countries from purchasing, owning, or having a substantial interest in real property in Arizona. The bill defines a "substantial interest" as an interest of 30 percent or more and outlines specific conditions under which foreign principals may acquire real property, such as being a natural person and the property being residential and two acres or less. It also mandates the Attorney General to enforce this prohibition and initiate legal action if violations are suspected.

Additionally, the bill specifies the process for divesting interests in real property found to be in violation of the new law, including the distribution of sale proceeds to lienholders and the state. It clarifies that title insurers and agents cannot be held liable for violations of this section, and such violations cannot be the basis for title insurance claims. The bill also includes definitions for "designated country," "foreign principal," "critical infrastructure," and "military installation," and establishes that foreign principals who already own property before the effective date of the act may continue to hold it but cannot acquire additional property.

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