Dallas, Texas – Attorney General Ken Paxton unveiled a proposal to create a public, searchable portal that would help Texans identify real‑estate owned by individuals or entities tied to designated foreign adversaries. The move builds on Senate Bill 17, which took effect on September 1, 2025, and restricts certain purchases by parties connected to China, Russia, Iran and North Korea.
Expanded reporting and transparency rules
In an October 9 press release, Paxton said the strengthened rules will “increase transparency, empower Texans to report potential violations.” The Texas Register notes that any person who believes a transaction violates the law may submit a voluntary report. Such submissions are not treated as formal complaints and do not, by themselves, establish a violation.
The proposal also clarifies that a facilitating entity that conducts “know‑your‑customer” due diligence in line with regulator guidelines—or standards adopted by a recognized industry group in good faith—will not be deemed to have known of a violation if none is discovered.
How the portal would work
The Attorney General’s office would develop a plan for the portal, modeling its operation after existing statewide registries such as the Texas sex‑offender registration database. While the portal would eventually include ownership data predating SB 17, the proposal does not launch the system immediately; it merely authorizes the planning phase.
Anyone may file a voluntary report on property acquired before September 1, 2025 if they have reason to believe the owner meets the statute’s definition of a foreign‑adversary entity. The portal would make such reports publicly searchable, allowing citizens to see flagged holdings and submit additional information.
Exemptions and scope of the law
Under the Texas Property Code, U.S. citizens and lawful permanent residents, as well as certain companies they own or control, are exempt. Leasehold interests lasting less than one year are also excluded, meaning the restrictions do not apply to every foreign buyer.
Critics have previously argued that the residency and leasing exemptions create loopholes. The Dallas Express reported those concerns during the 2025 legislative debate, but the final law retained the exemptions. Paxton’s office acknowledges the debate and says the new portal and reporting mechanisms are intended to close gaps by giving the public a tool to flag questionable transactions.
Next steps and public comment
The rules remain a proposal. The Texas Register states that comments will be accepted for 30 days at [email protected], with the earliest possible adoption date of November 8, 2026. Paxton’s office indicated the proposal will appear in that issue of the Register.
In addition to the portal plan, the Attorney General’s office announced the formation of a task force focused on foreign land sales, signaling a broader effort to monitor and enforce the state’s foreign‑property restrictions.
Implications for Texas homeowners and investors
For Texas homeowners and investors, the proposed portal could provide greater certainty about who holds title to nearby properties. By making potential foreign‑adversary ownership visible, the state aims to protect national security interests while preserving the rights of lawful owners.
Supporters argue that increased transparency aligns with constitutional principles of property rights and national security, while also empowering citizens to participate in safeguarding their communities. The administration’s emphasis on voluntary reporting reflects a belief that community involvement is a key component of effective enforcement.
As the comment period opens, stakeholders—including real‑estate professionals, industry groups, and concerned citizens—will have the opportunity to weigh in on the proposed rules and the design of the portal.
Original reporting: The Dallas Express — read the source article.
