It shouldn’t be a real estate professional’s responsibility to enforce a Texas law barring certain foreign control of Texas property.

So says a November 6 letter, written by Texas REALTORS® and a coalition of professional organizations, in response to proposed rules from the Office of the Attorney General.

Texas REALTORS® has been monitoring this issue since before Senate Bill 17’s introduction in 2025. This letter is another example of how Texas REALTORS® advocates for you and your business.

Here’s what you need to know.

What is SB 17?

Enacted by the Texas Legislature in 2025, SB 17 prohibits the sale, lease for more than one year, or acquisition of Texas property to certain individuals and organizations with connections to designated countries or organizations considered national security threats.

Who’s supposed to enforce it?

SB 17 gives the Attorney General the ability to investigate transactions after they have occurred, adopt rules for how to do so, and develop procedures to determine if an investigation is warranted.

Does the law require real estate professionals to report possible violations?

No. SB 17 notes that it is the Attorney General’s responsibility to enforce the law.

Weren’t some rules proposed a while ago?

Yes. The Office of the Attorney General created proposed rules in March, and Texas REALTORS® and other real estate professionals responded to them. The March proposed rules were withdrawn after they weren’t implemented after six months.

Why are real estate professionals involved now?

In October, the Office of the Attorney General published proposed rules that extends enforcement responsibility to “facilitating entities” in transactions, which would include real estate agents and brokers, lenders, title companies, insurers, appraisers, and real estate attorneys.

What are some other issues identified by the November 6 letter?

·       The proposed rules create conflicts of loyalty between real estate professionals and their clients.

·       The proposed rules are unworkable in practice and impose substantial costs.

·       The proposed rules would create conflicts with state and federal Fair Housing laws, consumer privacy laws, and the Fifth Amendment, among other laws and ordinances.

·       The standard for complying with the proposed rules is too vague and constitutionally untenable.

·       The proposed penalties for noncompliance raise due process concerns.

What’s next?

The November 6 letter asks the Attorney General to remove real estate professionals, or “facilitating entities,” from the proposed rules and calls for a public hearing to be held, among other measures.

“The Legislature entrusted enforcement of SB 17, including investigations of possible violations, to the [Office of the Attorney General]. The final rules must be in harmony with SB 17 to protect Texas’s interest in national security and should not impose new burdens, risks or liabilities on ordinary real estate and housing operations that the statute itself does not create,” according to the letter.

Read the full letter here.

Texas REALTORS® advocates for the best possible environment for you to help clients buy, sell, and lease real estate in Texas.

The association will continue to monitor the implementation of SB 17 and will update you with the latest information and resources to best help your clients.