The Texas attorney general has issued proposed rules to implement Senate Bill 17, the law that bans some foreign ownership of real property which passed during the 89th Texas Legislature. SB 17 prohibits certain individuals, companies, and government-linked entities from designated countries from buying, renting, or acquiring real property in Texas. These rules are not final and are currently open for public comment through April 26th.
Texas REALTORS® worked directly with lawmakers and industry partners to ensure that real estate professionals were not expected to enforce this law. The proposed rules, however, introduce a reporting obligation for “facilitating entities,” which would include real estate agents, to report a transaction if they know or reasonably should know that a transaction violates the law. Not only does this create new levels of uncertainty for members, but the proposed rules could also increase risks associated with fair housing laws and the REALTOR® Code of Ethics.
We believe the proposed rules go beyond the original legislative intent. REALTORS® are not investigators and should not be expected to make determinations that could conflict with their obligations to provide equal professional service to all clients.
We encourage members to review the proposed rules and submit comments on how these changes impact your business. Your voice is an important part of ensuring that any final regulations reflect the intent of the law and the realities of real estate practice.
Texas REALTORS® is actively engaged in the rulemaking process and is working in coordination with real estate industry partners to provide feedback and advocate for clear, practical guidance that protects both consumers and real estate professionals.
Texas REALTORS® will continue to keep you updated and provide guidance as this process moves forward.