The bill, H.B. No. 1849, seeks to regulate the purchase or acquisition of title to real property by certain foreign individuals and entities, particularly those from designated countries such as China, Iran, North Korea, and Russia. It amends existing laws to clarify that aliens generally have the same property rights as U.S. citizens, but introduces a new subchapter that prohibits specific foreign entities and individuals from acquiring real property in Texas. The bill outlines exceptions for U.S. citizens, lawful permanent residents, and certain leasehold interests, while establishing a framework for the governor to designate additional countries subject to these restrictions.

Additionally, the bill creates a criminal offense for individuals domiciled in designated countries who intentionally acquire real property in Texas, classifying such an offense as a state jail felony. It also mandates the attorney general to investigate potential violations and enforce compliance, including the appointment of receivers to manage properties acquired in violation of the law. The bill stipulates that any fines imposed for violations will be significant, with penalties set at a minimum of $250,000 or 50% of the property's market value. The law is set to take effect on September 1, 2025, and will apply only to transactions occurring after that date.

Statutes affected:
Introduced: Civil Practice and Remedies Code 64.001, Property Code 5.005 (Civil Practice and Remedies Code 64, Property Code 5)