This bill aims to prohibit adverse foreign governments and certain associated individuals from acquiring or holding any legal or beneficial interest in real property within the State of New Jersey. The legislation specifically targets governments identified as threats to U.S. national security, including the Peoples Republic of China, Russia, Iran, and North Korea, as outlined in recent Annual Threat Assessments by the U.S. Intelligence Community. Existing foreign owners of real property will be allowed to retain their interests for a maximum of five years after the bill's effective date, after which they must sell or convey their interests to non-adverse entities. The bill also includes exceptions for property acquired through legal processes related to debt collection or by inheritance.

Additionally, the bill establishes penalties for violations, allowing the attorney general to pursue civil actions against entities that breach its provisions. Violators may face fines up to $250,000 or 50% of the market value of the property in question. The Secretary of State is tasked with creating rules and regulations to implement the bill's provisions. Importantly, any part of the bill that conflicts with federal law will not apply, ensuring that the legislation aligns with existing federal regulations and objectives.